FNCE 3151: Portfolio and Equity Analysis
Students examine the different types of financial assets, the markets in which they trade, and how investors stucture these assets into diversified portfolios to meet their financial objectives. Emphasis is placed on the valuation of equity securities. Topics include an introduction to risk and return; types of securities and the investment process; mutual funds; stock market and common stock valuation; stock price behaviour, market efficiency, and behavioral finance; technical analysis; fundamental analysis; return, risk and security market line; and portfolio management and performance evaluation.
Learning outcomes
- Evaluate the effect of risk and diversification on investment decisions.
- Discuss the characteristics of the various types of investments and the ways in which they are sold.
- Defend the use of mutual funds versus investing in individual assets.
- Explain the functioning of financial markets and their role in pricing investments.
- Compare the efficient market hypothesis with behavioral finance.
- Value equities using fundamental analysis and technical analysis.
- Analyze a company’s prospects in relation to its industry and peers.
- Use the Capital Asset Pricing Model and Asset Pricing Theory to estimate investment returns.
- Develop a portfolio management plan reflecting the goals, risk tolerance, and circumstances of individual and institutional investors.
Course topics
- Unit 1: Risk, Return, Diversification, and Asset Allocation
- Unit 2: The Stock Market
- Unit 3: Risk and Return
- Unit 4: Risk, Return, and the Security Market Line
- Unit 5: Common Stocks
- Unit 6: Analyzing Common Stocks
- Unit 7: Stock Valuation
- Unit 8: Market Efficiency and Behavioural Finance
- Unit 9: Mutual Funds and Exchange-Traded Funds
- Unit 10: Portfolio Management and Performance Evaluation
Required text and materials
Students require the following e-textbook, which can be purchased directly from the TRU bookstore site at https://thebookstore.tru.ca/site_digital.asp
- Zutter, C. J. (2019). MyLab Finance with Pearson eText – Access Card – for Fundamentals of investing (14th ed.) Pearson. Type: eText with Access Card. ISBN: 9780135179307 07
Note: The above Access Card contains study resources. MyLab Finance is not required or needed to complete this course, but might provide extra study resources if students are interested.
Assessments
Please be aware that should your course have a final exam, you are responsible for the fee to the online proctoring service, ProctorU, or to the in-person approved Testing Centre. Please contact exams@tru.ca with any questions about this.
To successfully complete this course, students must achieve a passing grade of 50% or higher on the overall course, and 50% or higher on the mandatory final exam.
| Quiz x3 (6%, 6%, and 8%) | 20% |
| Assignment 1: Risk Analysis | 10% |
| Assignment 2: Project Proposal | 10% |
| Assignment 3: Portfolio Project | 20% |
| Final Exam (mandatory) | 40% |
| Total | 100% |
Open Learning Faculty Member Information
An Open Learning Faculty Member is available to assist students. Students will receive the necessary contact information at the start of the course.
