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Course Code: 
AFN 314
Course Period: 
Spring
Course Type: 
Core
P: 
3
Lab: 
0
Credits: 
3
ECTS: 
6
Prerequisite Courses: 
Course Language: 
İngilizce
Course Objectives: 
To introduce the students in international finance to the theory as well as the application of investment management. Through classroom discussions, individual and group projects, and hands-on experience in “trading room” exercises, spreadsheet examples, and portfolio management simulations students will be exposed to the key concepts and technical tools necessary to understand, and to participate in the security analysis and investment decisions. Through careful analyses and hard work students will have a chance to integrate and synthesize the theoretical and empirical observations, the core investment and portfolio management concepts and methods with real life applications.
Course Content: 
Topics discussed include, but are not limited to, models of return and risk, efficient portfolios, optimal portfolios, diversification, efficient markets, fundamental analysis, technical analysis, fixed income securities, bond portfolios, interest-rate risk management, different approaches to equity valuation, enterprise valuation, international diversification, mutual funds, hedge funds, portfolio management strategies, dynamic portfolios, asset allocation versus security selection, portfolio performance evaluation, and investment consulting process.
Course Methodology: 
1: Lecture, 2: Question-Answer, 3: Discussion, 4: Simulation, 5: Case Study
Course Evaluation Methods: 
A: Testing, B: Presentation, C: Homework, D: Project, E: Laboratory

Vertical Tabs

Course Learning Outcomes

Learning Outcomes

Program Learning Outcomes

Teaching Methods

Assessment Methods

1. To be able to describe the  fundamental concepts, underlying theories, practical methods and techniques used in investment analysis and portfolio management

1,2,3

1, 2, 3, 4

A, B, C, D

2. To be able to explain the investment tools, characteristics and investment environment

2,5,7,10

1, 2, 3, 4

A, B, C, E

3. To be able to value different assets

1,2,5,8

1, 2, 3, 5

A, B, C, D

4. To be able to describe the fundamental investment strategies and to execute them

 

1,2,8

 

1, 2, 3, 4

A, B, C, E

5. To be able to identify the impact of business events or macroeconomic factors on investment performance

3,4,5,7,8,10

1, 2, 3, 4

A, B, C, D

6. To be able to integrate theory and practice of construction and performance evaluation of investment portfolios

1,2,5,8,10

1, 2, 3, 5

A, B, C, D

 

 

 

Course Flow

Week

Topics

Study Materials

1

Overview, Class Procedures, Assignments and Distribution of Tasks

 

2

Elements of Investments, Background, Markets, Trading and Instruments

Textbook Chapters 1,2

3

Elements of Investments, Background, Markets, Trading and Instruments

Trading Lab Workshops and Training on Assignments and Simulation

Textbook Chapter 3

4

Elements of Investments, Background, Markets, Trading and Instruments

Trading Lab Workshops and Training on Assignments and Simulation 

Textbook Chapter 3

5

Elements of Investments, Instruments

Textbook Chapter 4

6

Investment Risk and Return: Observations and Estimations

Textbook Chapter 5

7

Efficient and Optimal Portfolios

Textbook Chapters 6 - 7

8

Models of Risk and Return: Portfolio Applications

Textbook Chapters 6 - 7

9

Efficient Markets and Behavioral Finance: 

Technical vs. Fundamental Analysis

Textbook Chps. 8, 9, 12 

10

Equity Valuation

Textbook Chapter 13

11

Bond Valuation,  Bond Portfolios and Risk Management

Textbook Chapters 10,11

12

Futures Markets and Risk Management

Textbook Chapter 17

13

Portfolio Management Strategies: Active, Passive, Dynamic, Funds, International Diversification

Risk Control, Portfolio Performance Evaluation and Performance Attribution

Textbook Chps. 18,19, 20

14

Portfolio Management Strategies: Active, Passive, Dynamic, Funds, International Diversification

Risk Control, Portfolio Performance Evaluation

and Performance Attribution

Textbook Chps. 18,19, 20

15

End of the Semester Activities

 

 
 

Recommended Sources

Textbook

Essentials of Investments, Bodie, Kane, and Marcus, 8e, McGraw-Hill/Irwin.

Additional Resources

Course website, lecture notes, financial markets lab, virtual portfolio management program, scientific calculator, online resources and spreadsheet software.

 
 

Material Sharing

Documents

Guidelines and additional examples for lecture topics, homework assignments and simulation, virtual portfolio management program.

Assignments

Homework/Lab assignments, and simulation.

Exams

2 Midterm Exams and Final Exam

 
 

Assessment

IN-TERM STUDIES

NUMBER

PERCENTAGE

Simulation      

1

15

Midterms

2

60

Homework/Lab Assignments     

10

25

Total

 

100

CONTRIBUTION OF FINAL EXAMINATION TO OVERALL GRADE

 

35

CONTRIBUTION OF IN-TERM STUDIES TO OVERALL GRADE

 

65

Total

 

100

 

 

COURSE CATEGORY

Expertise/Field Courses

 
 

Course’s Contribution to Program

COURSE'S CONTRIBUTION TO PROGRAM

No

Program Learning Outcomes

Contribution

1

2

3

4

5

 

1

 

To understand the core principles of finance and to be able to apply them both nationally and internationally.

 

 

 

 

X

 

2

 

To effectively use contemporary information technologies and up-to-date financial instruments.

 

 

X

 

 

 

 

3

 

To understand the ethics rules and the social responsibility mentality adopted by professional finance organizations and apply them in the decision-making process.

X

 

 

 

 

 

 

4

 

To have the necessary background to be able to work in multicultural and multilingual environments.

X

 

 

 

 

 

5

 

To be informed about markets and the factors affecting them, and to be able to analyze the developments in these markets.

 

 

 

 

 

X

 

6

 

To recognize management tools and models specific to multinational companies and to be able to apply them where necessary.

X

 

 

 

 

 

7

 

 

To understand the structure of the global economic system and to be able to analyze how new developments will affect this structure.

 

 

X

 

 

 

 

 

 

8

 

To be able to use critical thinking ability in decision making process.

 

 

 

 

X

 

9

 

To be able to transfer the leadership, teamwork and communication skills acquired to the lifelong learning process.

 

 

 

 

 

 

10

 

To be able to predict the opportunities and problems that may arise under dynamic working conditions and manage these using analytical and creative approaches.

 

 

X

 

 

 

 

ECTS

Activities

Quantity

Duration
(Hour)

Total
Workload
(Hour)

Course Duration (Including the exam week: 16x Total course hours)

15

3

45

Hours for off-the-classroom study (Pre-study, practice)

15

4

60

Mid-terms

2

5+7,5

12,5

Homework/Lab

10

1,5

15

Simulation

8

1,5

12

Final examination

1

10

10

Total Work Load

 

    

154,5

Total Work Load / 25 (h)

 

 

6,18

ECTS Credit of the Course

 

 

6