Master of Science in Financial Services

One of the industry’s most pragmatic elite degrees.

MS630 - Portfolio Management

Management. Analysis. Allocation.

In this gradute level course you will learn how to better manage client portfolios, become familiar with asset alternatives and portfolio analysis methods.

The course is divided into six parts:

  • Asset allocation choices
  • Developments in investment theory
  • Financial statements and security valuation
  • Stock and bond analysis
  • Derivatives
  • Management evaluation

The course material covers the following:

The Investment Setting

  • Measures of Return & Risk
  • Determinants of Required Rates of Return
  • Risk and Return Relationship

Allocation Decision

  • Individual Investor Life Cycle
  • Portfolio Management Process
  • Need for a Policy Statement
  • Policy Statement Input
  • Constructing the Policy Statement
  • Importance of Asset Allocation

Global Selection

  • Case for Global Investments
  • Global Investment Choices
  • Historical Risk-Returns

Securities Markets

  • Primary and Secondary Capital Markets
  • Secondary Capital Markets
  • U.S. Secondary Equity Markets
  • Analysis of Exchange Markets

Security-Market Indexes

  • Uses of Security-Market Indexes
  • Differentiating Constructing Factors Stock-Market Indexes
  • Composite Stock-Bond Indexes
  • Comparisons of Indexes Over Time

Efficient Capital Markets

  • Why Capital Markets Should be Efficient
  • Alternative Efficient Market Hypothesis
  • Tests and Results of Efficient Market Hypothesis and Behavioral Finance
  • Implications of Efficient Capital Markets

Portfolio Management

  • Background Assumptions
  • Markowitz Portfolio Theory

Asset Pricing Models

  • Capital Market Theory
  • Capital Asset Pricing Model (CAPM)
  • Relaxing Assumptions
  • Additional Empirical Tests of CAPM
  • Market Portfolio: Theory vs. Practice
  • Multifactor Models
  • Arbitrage Pricing Theory
  • Risk Estimation

Financial Statement Analysis

  • Major Financial Statements
  • Analysis and Computation of Ratios
  • Evaluating Internal Liquidity
  • Evaluating Operating Performance
  • Analysis of Growth and Risk Potential
  • Comparative Analysis of Ratios
  • Non-U.S. Financial Statements
  • Quality of Statements
  • Value of Financial Analysis
  • Specific Uses of Ratios

Security Valuation

  • Valuation Process Overview
  • Why a Three-Step Process
  • Valuation Theory
  • Alternative Investment Valuations
  • Relative Valuation Techniques
  • Required Rate of Return
  • Expected Growth Rate: Valuation Variables


  • Components of Market Analysis
  • Microevaluation Analysis
  • Using the Earnings Multiplier Approach
  • Estimating Expected Earnings per Share
  • Estimating Market Earnings Multiplier
  • Microevaluation of World Markets

Industry Analysis

  • Relevance of Industry Analysis
  • Business Cycle and Industry Sectors
  • Structural Economic Changes
  • Alternative Industries
  • Evaluating Industry Life Cycle
  • Analysis of Industry Competition
  • Estimating Industry Rates of Return
  • Relative Valuation Approach
  • Other Valuation Ratios

Company Analysis

  • Company Analysis vs. Stock Analysis
  • Economic, Industry and Structural Links Estimating Intrinsic Value
  • Estimating Company EPS
  • Estimating Company Earnings Multipliers
  • Additional Measures of Relative Value
  • Analysis of Growth Companies
  • Measures of Value Added
  • Site Visits
  • Art of the Interview
  • When to Sell
  • Influences on Analysis

Technical Analysis

  • Underlying Assumptions
  • Advantages and Challenges
  • Technical Trading Rules and Indicators
  • Technical Analysis of Foreign Markets
  • Technical Analysis of Bond Markets

Portfolio Strategies

  • Passive vs. Active Management
  • Passive Management Strategies
  • Active Management Strategies
  • Value vs. Growth Investing
  • Asset Allocation Strategies

Bond Fundamentals

  • Basic Bond Features
  • Alternative Bond Issues
  • Obtaining Information on Bond Prices

Bond Analysis

  • Fundamentals of Bond Valuation
  • Computing Yields
  • Calculating Future Prices
  • Bond Valuation Using Spot Rates
  • What Determines Interest Rates
  • Forward Rates from Spot-Rate Curve
  • Term-Structure Theories
  • What Determines Price Volatility
  • Yield Spreads with Imbedded Options

Bond Strategies

  • Bond Portfolio Performance
  • Style and Strategy
  • Active and Passive Strategies
  • Core-Plus Strategies
  • Matched Funding Strategies
  • Contingent and Structured Strategies

Derivative Markets

  • Overview of Derivative Markets
  • Investing with Derivative Securities
  • Forward and Option Contracts
  • Use in Portfolio Management

Futures Contracts

  • Forward & Futures Trading
  • Hedging
  • Basic Valuation Concepts
  • Applications and Strategies

Option Contracts

  • Option and Market Contracts
  • Option Valuation Fundamentals
  • Option Valuation: Extensions
  • Advanced Topics
  • Option Trading Strategies

Embedded Derivatives

  • OTC Interest Rate Agreements
  • Swap Contracting Extensions
  • Warrants and Convertible Securities
  • Other Embedded Derivatives
  • Real Options

Alternatives and Ethics

  • Asset Management Industry
  • Structure and Evolution
  • Private Management
  • Advisory Firms
  • Investment Company Structure
  • Investing in Alternative Asset Classes
  • Ethics and Regulation


  • What is Required in a Portfolio Manager
  • Early Performance Measurement
  • Composite Portfolio Performance Measures
  • Application of Performance Measures
  • Factors that Affect Use of Measures
  • Evaluation of Bond Portfolio Performance
  • Reporting Investment Performance

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