FIN361 : Portfolio theory

Department

Department of Financing and Banking

Academic Program

Bachelor in Finance and banking

Type

Compulsory

Credits

03

Prerequisite

FIN266

Overview

The study of the course aims to know and comprehend the basic ingredients for making an investment decision, whether the decision to buy or sell, the risks of the investment portfolio and the return on it, especially when dealing in the capital markets, as well as the student’s knowledge of financial indicators when analyzing stocks and bonds, the ability to build investment portfolios and diversify them, and knowing the advantages and costs of funds Investment and financial derivatives and the advantages and risks of dealing with them.

Intended learning outcomes

A. Knowledge and understanding:

  • To familiarize the student with the concept and nature of investment portfolios, their evaluation and management.
  • That the student be acquainted with the different aspects of the portfolio theory of portfolio choices in the context of return and variance, and the student's knowledge of the concept of the financial market and the types of capital markets.
  • Learn about the advantages of investment funds and investment costs, as well as identifying and avoiding financial risks.

B. Mental skills:

  • The student should be able to understand the concept and nature of investment portfolios.
  • The student should be able to build and diversify investment portfolios, taking into account diversification in maturity dates.
  • The student should be able to reach sound financial decisions in investment portfolios.

C. Scientific and professional skills:

  • The student should be able to comprehend knowledge and related principles and theories.
  • The student should be able to trade in securities.
  • The student should be able to evaluate stocks, bonds and profit margin.

D. General skills:

  • The student should be able to interpret the results of the analysis of the investment portfolio and the return and risks it contains.
  • That the student plans to choose between optimal investments and what is an efficient investment.
  • The student analyzes what are the strategies of the investment portfolios.

Teaching and learning methods

  1. Study lectures.
  2. Cases and exercises.
  3. Training the student to prepare a short research.

Methods of assessments

  1. Midterm exam 20%.
  2. Research paper 10%.
  3. Activity 10%.
  4. Final exam 60%.

Course content

Number of hours

scientific subject

Week

1

The general concept of the portfolio and its components.

3

2

The basic ingredients of the investment decision.

3

3-4

Return and risk of investment.

6

5-6-7

Valuation of stocks and bonds.

9

8-9-10

Building and managing investment portfolios.

9

11-12

Capital asset pricing theory.

6

13-14

Trading in securities on margin.

6

Portfolio theory (FIN361)
Audit and control of banks (FIN465)
Various insurance (FIN464)
Re Insurance (FIN463)
Finance and real estate investment (FIN462)
Contemporary financial issues (FIN460)
Quantitative methods in finance (FIN369)
Takaful insurance (FIN368)
Financial indicators and investment funds (FIN367)
International investment (FIN366)
Financial derivatives (FIN365)
Securities and currencies analysis (FIN364)
Advanced corporate finance (FIN363)
Investment evaluation (FIN362)
Corporate finance (FIN360)
Financial analysis and forecasting (FIN269)
Financial institutions (FIN268)
Banking operations and policies (FIN267)
Financial markets (FIN266)
Islamic financing and investment formulas (FIN265)
Fundamentals of Islamic banking (FIN264)
Insurance basics (FIN263)
Financial policies (FIN466)
International Finance (FIN467)
Financial management (FIN260)
Strategic financial analysis (FIN468)
Banking marketing (FIN469)
Planing peincipals (PLA170)
Financing Principles (FIN160)
Accounting Principles I (ACC 130)
Principles of Accounting II (ACC131)
Investing basics (FIN262)
Banking basics (FIN261)