90LEARNING CONTRACT
INVESTMENT MANAGEMENT
(CREDIT POINT: 3)
Prepared by : A. Chair Loebis
Susy Indri Anggraini
A. COURSE DESCRIPTION
The objective of this subject is proposed to give the students the basic of how the investor to
make decicion of the existing altertinative choice of investment in which the variety types of
investment have the uncertainty return. The undestanding of risk and return concept of
individual security and portfolio will be used to explain that decision. This study will also
evaluate the financial decision making in capital market to explain the valuation process of
variety of securities and portofolio.This building block then will be applied to many financial
instruments like bond and stock.
B. COURSE BENEFITS
This course provides knowledge and understanding about choosing the best investment
alternative.
C. LEARNING GOALS
Specific Instructional Goals:
When this course completed, the student should be:
1. Able to use the concept of return and risk and their relation each other in making
investment strategy in capital market.
2. Able to undertand capital market theory and able to use it to determine the expected risk
3.
4.
5.
6.
7.
and return of the securitues.
Able to analize, appraise and manage the fixed income securities and stock.
Ableto analize the securities using fundamental approach/
Able to understand options and futures and also its usage for hedging and
speculative.
Able to form, manage and evaluate the portofolio
Able to undertand Code of Ethics in Capital Market and its implementation in variety of
bussiness situation.
Upon completion of this subject, the students also will be:
1. expected to have a solid theoritical knowledge so that their technical knowledge will be
more meaningful
2. able to solve various issues rationally of investment based on the undestanding of risk and
return concept of individual security and portfolio
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D. LEARNING METHOD
The learning process using the method of:
1. Tutorial/lecture
Lecturer will conduct lecturing interactively about the respective topics according to the
schedule.
2. Student Presentation
Student will present their task according to the schedule that determined before.
Discussion
a. Student discussing the result of independent tasks.
b. Student should be active participate during the class sessions, by asking or answer
questions, giving opinions and comments, and should always responsive to the the
topic discussed.
E. LEARNING TOPICS
Week Time
I
3x
50”
Topic
Introduction to investing:
- Definition of investment & alternatif
choices of investments
Referrence
J Ch.1-2
Assignment
J Ch. 3,4,5
Spreadsheet
exercises 3-1
Financial Assets Available to Investors
-
-
II
3x
50”
Organizing Financial Assets
Nonmarketable Financial Assets
Money Market Securities
Fixed-Income Securities
Equity Securities
Derivatives Securities
Investing in Mutual Funds and ETFs
-
-
Investing Indirectly
What is an Investment Company?
Types of Investment Companies
Types of Mutual Funds
The Mechanics of Investing Indirectly
Investment Company Performance
Investing Internationally through
Investment
Companies
The Future of Indirect Investing
Hedge Funds
Financial Markets
-
The Importance of Financial Markets
The Primary Markets
The Secondary Markets
Stock Market Indexes
Bond Markets
Derivatives Markets
The Changing Securities Markets
What to Know about Trading Securities
-
Brokerage Transactions
How Orders Work
Investor Protection in the Securities
Markets
Margin
Short Sale
2
Computational
problem
4-1
5-2
III
3x
50”
Measuring Returns and Risk
-
Return
Risk
Measuring Returns
Taking a Global Perspective
Measuring Risk
Realized Returns and Risks from Investing
J Ch.6 & 7
Spreadsheet
exercises
6-1
7-1
J Ch.8
Spreadsheet
exercises
8-1
J Ch.9
Computational
problem
9-1
9-4
J Ch.10
Problem10-1
Diversification and Portfolio Theory
-
IV
3x
50”
- Calculating Portfolio Risk
Selecting an Optimal Portfolio
-
V
VI
VII
IX
Building a Portfolio Using Markowitz
Principles
Alternative Methods of Obtaining the
Efficient
Frontier
Selecting Optimal Asset Classes
The Impact of Diversification on Risk
The Implications of Portfolio Selection
3x
50”
Models for the Pricing of Assets
3x
50”
The Valuation of Common Stocks
3x
50”
Analyzing and Managing Common Stocks
-
VIII
Dealing with Uncertainty
Portfolio Return and Risk
Analyzing Portfolio Risk
The Components of Portfolio Risk
3x
50”
3x
50”
Capital Market Theory
The Equilibrium Return-Risk Trade-Off
The Security Market Line
Estimating the SML
Tests of the CAPM
Arbitrage Pricing Theory
Understanding the APT Model
Discounted Cash Flow Techniques
Relative Valuation Techniques
Which Approach to Use?
Bursting the Bubble of New Economy Stock
A Lesson in Valuation
Some Final Thoughts on Valuation
Taking a Global Perspective
Analyzing Some Important Issues
Involving
Common Stocks
Building Stock Portfolios
The Passive Strategy
The Active Strategy
Computational
problems 10-2
J Ch.11
Problems 11-1
Computational
problem 11-1
Mid test
Efficient Markets
-
The Concept of an Efficient Market
How to Test for Market Efficiency
Behavioral Finance and Market Anomalies
Earnings Announcement
Some Conclusions About Market Efficiency
3
J Ch.12
Problem 12-1
Presentation
and discussion
X
3x
50”
Analysis of Economy/Market
-
XI
3x
50”
Taking a Global Perspective
Assessing the Economy
Understanding the Stock Market
Making Market Forecasts
Analysis of Sectors/Industries
What Is an Industry?
The Importance of Sector/Industry
Analysis
Analyzing Sectors/Industries
Using Sector/Industry Analysis as an
Investor
Analysis of Companies
-
Fundamental Analysis
The Accounting Aspects of Earnings
Analyzing a Company’s Profitability
Earnings Estimates
The P/E Ratio
Fundamental Security Analysis in Practice
J Ch.13
J Ch.14
Presentation
and discussion
J Ch.15 - 16
XII
3x
50”
-
Presentation
and discussion
What is Technical Analysis?
Stock Price and Volume Techniques
Technical Indicators
Testing Technical Analysis Strategies
Some Conclusions about Technical Analysis
Introduction to Bond Yields and Prices
Bond Yields
Bond Prices
Bond Price Changes
J Ch.17 -18,
The Analysis and Management of Bonds
-
XIII
3x
50”
-
XIV
3x
50’’
Why Have Derivative Securities?
Introduction to Options
Understanding Options
Payoffs and Profits from Basic Option
Positions
Some Basic Options Strategies
Option Valuation
An Investor’s Perspective on Puts and Calls
Stock-Index Options
Using Futures Contracts
-
Understanding Futures Markets
Current Indonesia Futures Market
The Structure of Futures Markets
The Mechanics of Trading
Using Futures Contracts
Financial Futures
The Portfolio Management Process
-
Portfolio Management as a Process
Formulate an Appropriate Investment
Policy
Determine and Quantify Capital Market
Expectations
4
Problem
17-1
17-20
18-1
Presentation
and discussion
Why Buy Bonds
Important Considerations in Managing a
Bond Portfolio
Building a Fixed-Income Portfolio
Using Puts and Calls
Problem
15-2
15-3
Computational
problem
16-1
An Alternative Approach − Technical Analysis
-
Problem
13-1
13-2
J Ch.19
Problem
19-1
Computational
problem
19-4
Presentation
and discussion
J Ch.20
Problem
20-1
Computational
problem
20-1
Question
CFA 21-13
Presentation
and discussion
-
XV
3x
50’’
3x
50’’
Computational
problem
22-1
22-2
Measuring Portfolio Performance
-
-
XVI
Developing and Implementing Investing
Strategies
Monitor Market Conditions and Investor
Circumstances
Rebalancing the Portfolio
A Framework for Evaluating and Assessing
Portfolio Performance
Performance Measurement Issues
Risk-Adjusted Measures of Performance
Style Analysis and Performance Attribution
Money Managers and Performance
Presentations
Code of Ethics in Capital Market
Presentation
and discussion
Final test
F. TASKS / ASSIGNMENT
Group assignment
Every group consist 2 students. Preparation and presentation of paper. Each Groups must give
critical and logical reasoning from related topic and cases on each chapter. Random method will
be use to select a group which its would presented a paper. Others group or individually must be
active in discussion. This assignment should be finished before mid test.
Task Assessment Criterion
No
1
2
Criterion
Quality of the solution
Ability of presenting, explaining, and discussing the topic in
front of the class.
TOTAL
Weight
70%
30%
100%
Individual assignment:
Home work, problems from problem sets in text book and Analyzing some problems which
determined tentatively in syllabus.
Paper, every student shoul read one article of applied study to Indonesian capital market. It should
be submitted before final test.
Task Assessment Criterion
No
1
Criterion
Percentage of the correctness of solution
TOTAL
Weight
100%
100%
Punishment
Remember that student should always considering the deadline and ethics of plagiarism. Report
should be written by the student him/herself, instead of just coppying the other students’ work. If
the student proven to be doing in some extent of plagiarism, and or submit the task out of the
deadline, so the task will be considered as fail and will get no point for the task.
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G. ASSESSMENT
Assessment of the course learning is based on the accumulation of five components as
follows:
No
1
2
3
4
5
Activities
Final Test
Mid Test
Quiz (3X):
Task/ Group Assignment
Individual Assignment
TOTAL
Weight
30%
30%
20%
10%
10%
100%
The teacher is able to change the composition if it is necessary.
H.
LITERATURE AND REFERENCES
Jones, Charles P., “Investments: Analysis and Management”, 2007, Tenth edition,
John Wiley & Sons, Inc, New York, N.J. ( Code J )
Jones, Charles P., “Investments: Analysis and Management, Indonesioan Adaptation”,
2009, Salemba Empat &, John Wiley & Sons, Inc, New York, N.J.
Sharpe, William F, Alexander, Gordon J and Bailey, Jeffery V., “ Investments”, 1999, Sixth edition ,
Prentice Hall, New Jersey. ( Code SHARPE)
Body Zvi, Kane Alex & Marcus Alan J, “Investments”, 2002 International Edition, Mc Graw Hill
Irwin, New York. (BKM)
Francis, Jack Clark., Taylor, Richard W., “Investment, Analysis and Management”, 1992,
International Edition, Mc Graw Hill Irwin, New York.
Harianto, Farid and Siswanto, Sudomo, “Perangkat dan Teknik Analisis Investasi di Pasar Modal
Indonesia”, 1998, PT Bursa Efek Jakarta, Jakarta.
Undang-Undang Pasar Modal Indonesia and Peraturan Pelaksanaannya
Journals about Capital Market from various sources.
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