University of Eastern Africa, Baraton

Course Outline
School of Business
Department of Accounting & Finance
Course Information
Course Code: FNCE467
Course Title: Investment Analysis & Portfolio Management:
No of Cr Hours: Credit Hours: 3 Cr
Year of Study: Second Year
Academic Year: 2024/205.1
Instructor Information
Instructor: Dr. David A. O. Aunga
Lecture Days: TTh
Lecture Time: 8:00-9:30 am
Humanities: H102
Office Hours: On appointment
Telephone: +254724716411/+254786918736
E-mail: aungad@ueab.ac.ke
COURSE DESCRIPTION
The purpose of the course is to acquaint the students with the concepts of investment decision making and
management process. The course also intends to expose students to portfolio theory and securities (bonds
and stocks) valuation models and the mean -variance analysis concepts associated with valuation.
Valuation models should help students to identify overpriced and underpriced securities.
Prerequisite: FNCE 390 for Finance Majors.

LEARNING OUTCOMES OF THE COURSE

Upon successful completion of this course, the students are expected to:
1. To provide an in-depth appreciation and understanding of an investor's issues, challenges and
complexities in deciding where to invest.
2. Critically examine the nature and operations of the Kenya securities market.

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 3. To introduce participants to tools and strategies of Modern Portfolio Theory, Capital Asset
Pricing Model, Arbitrage Pricing Theory, and security analysis techniques (Technical and
Fundamental analyses).
4. To provide students with the opportunity to work with these tools and apply these strategies
to solve real-life investment problems, thus impressing upon the students the need for
investment and professionalism in the analysis and management of investment portfolios.
5. To develop a critical mindset that can tackle continuously evolving investment opportunities

Online Study Module

There will be no online classes. Classes will be conducted physically except under special
circumstances. However, notes will be uploaded to the student’s portal online. Assignments, tests
and mid-exams may be done online. The lecturer will meet students twice a week for one and a
half hours each through Zoom.

Lecturer’s Responsibilities
The lecturer will be responsible for the following:

1. Set up the weekly topics, required readings, and assignments for each week.
2. Provide feedback on the submitted assignments
3. Assess and grade the final exam

Course Requirements
The student is responsible for the following:
a. Learning on how to navigate through the course in the e-learning platform. If the student
has challenges he/she can get help from the University IT personnel.
b. Read the weekly reading materials.
c. Participate in online discussion forums by asking/posting questions in the reading forums
and respond to other participant’s questions/posts. The students should at least ask TWO
questions and answer TWO questions from each TOPIC of the course syllabus. They will
be graded as part of participation.
d. Complete all the assignments and submit it in a timely manner.
e. Do all the quizzes and final exam
f. Comply with all requirements procedures that are stipulated.
g. Contact the teacher for any issue with the course so that it can be dealt with immediately.
h. Checking on the announcements section for any announcements from the teacher.

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COURSE CONTENT
Week Topic Readings Activities Due Date

1&2 Basic Concepts of Investment Bodie, Z., Kane, A., Understandin By the
Analysis-investment concepts, forms & Marcus, A. J., g the basic end of the
of investments Investments and definitions class
Types of investment Portfolio
Kenya Government, local authority Management, 9th
and other securities, foreign Edition, 2011,
securities, and bonds, debentures, McGraw-Hill/Irwin,
loan capital, shares, redemption, Global Edition.
drawings, sinking funds, interests, Pg. 29-117
dividends, investment trusts, linked
life assurance; freehold property,
mortgages, land rents and rates;
stock exchange procedures
(functions of the stockbrokers,
quotations, contracts, commissions,
stamp duties)
3 Stock Transfer, stock market indices, Frank J. F. & Pamela
Nairobi stock exchange comparison P. D. (2009).
with other stock exchange markets Finance: capital
markets, financial None None
management, and
investment
management. New
Jersey: John Wiley $
Sons
4 i. Fundamental Analysis Bodie, Z., Kane, A., Differentiatin The next
j. Technical Analysis & Marcus, A. J., g between class
Investments and fundamental
Portfolio and technical
Management, 9th
analysis
Edition, 2011,
McGraw-Hill/Irwin,
Global Edition.
Pg. 36-37 & pg.
420-434
5 Efficient Market Hypothesis and its Bodie, Z., Kane, A., Understandin By the
implications & Marcus, A. J., g the basic end of the
Investments and concepts class
Portfolio
Management, 9th
Edition, 2011,
McGraw-Hill/Irwin,
Global Edition.
Pg. 371-396
6 Introduction to expected return and Bodie, Z., Kane, A., Understandin By the
risk of a security & Marcus, A. J., g the basic end of the
1. Return Investments and concepts class

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Week Topic Readings Activities Due Date
2. Risk Portfolio
Management, 9th
Edition, 2011,
McGraw-Hill/Irwin,
Global Edition.
Pg. 145-187
7 Portfolio Theory Bodie, Z., Kane, A., Concept The next
Expected return of a portfolio & Marcus, A. J., check pg. 247 class
The standard deviation of a portfolio Investments and
Diversification & portfolio risk Portfolio
selection of investment Management, 9th
calculation of yields Edition, 2011,
McGraw-Hill/Irwin,
Global Edition.
Pg. 224-248
8 Portfolio Theory Bodie, Z., Kane, A.,
Expected return of a portfolio & Marcus, A. J.,
The standard deviation of a portfolio Investments and
Diversification & portfolio risk Portfolio None None
selection of investment Management, 9th
calculation of yields Edition, 2011,
McGraw-Hill/Irwin,
Global Edition.
Pg. 224-248
9 Capital Asset Pricing Model Bodie, Z., Kane, A., Qtn. 4 on pg. The next
& Marcus, A. J., 339 class
Investments and
Portfolio
Management, 9th
Edition, 2011,
McGraw-Hill/Irwin,
Global Edition.
Pg. 308-345
10 Arbitrage Pricing Theory Bodie, Z., Kane, A., Qtn. 11 on The next
& Marcus, A. J., pg. 367 class
Investments and
Portfolio
Management, 9th
Edition, 2011,
McGraw-Hill/Irwin,
Global Edition.
Pg. 347-370
11 Portfolio management strategies Bodie, Z., Kane, A.,
Passive portfolio management & Marcus, A. J.,
Investments and
Portfolio None None
Management, 9th
Edition, 2011,

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 Week Topic Readings Activities Due Date
McGraw-Hill/Irwin,
Global Edition.
Pg. 554-575
12 Active portfolio management Bodie, Z., Kane, A., Practice on By the
& Marcus, A. J., the concept next class
Investments and check
Portfolio problems in
Management, 9th
the chapter
Edition, 2011,
McGraw-Hill/Irwin,
Global Edition.
Pg. 954-978
13 Introduction to financial innovation Bodie, Z., Kane, A., Understandin By the
Role of futures in hedging and & Marcus, A. J., g the basic end of the
speculation Investments and concepts class
Portfolio
Management, 9th
Edition, 2011,
McGraw-Hill/Irwin,
Global Edition.
Pg.576-715
14 Introduction to financial innovation Bodie, Z., Kane, A., Understandin By the
Role of futures in hedging and & Marcus, A. J., g the basic end of the
speculation Investments and concepts
Portfolio class
Management, 9th
Edition, 2011,
McGraw-Hill/Irwin,
Global Edition.
Pg.576-715

Value Aims
Faith and learning will be integrated in all the class experiences during the semester to develop among
students the values of honesty, integrity, accuracy, timeliness, teamwork, perseverance, and reliability.
Learning & Teaching Methodologies
Lectures and class discussions, problem solving, comprehensive exercises
Course Assessment:
The student will be expected to complete all assignments in good time. Late assignments
may lead to marks not being awarded for the assignment. Class attendance is
mandatory and missing more than 15% of class appointments will lead to a failing
grade. Academic dishonesty is highly discouraged which includes presenting someone
else work as your own and copying during the quizzes and final examinations. Any
academic dishonesty will be handled according to the university rules and regulations.
The course assessment will be as follows:
Attendance 5%

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 Assignments/ Quizzes 10%
Projects/Term Papers 10%
Mid Semester Exam 15%
Final Examination 60%
Total 100%

Instructional Materials
1. Bodie, Z. Kane, A., & Marcus, A. J.: Investments and Portfolio Management, 9th Edition, 2011,
McGraw-Hill/Irwin, Global Edition.
2. Fischer & Jordan: Security Analysis and Portfolio Management, 3rd Edition, 1983, Prentice Hall.

Recommended Reference Materials

1. Hirt and Block: Fundamentals of Investment Management, 8th Edition, 2006, McGraw-Hill.
2. Bodie, Z., Kane, A., & Marcus, A. J: Investments, 7th Edition, 2008, McGraw-Hill, International
Edition.
3. Reilly, Frank K. and Keith C. Brown: Investment Analysis and Portfolio Management, 8th
Edition, 2006, Thompson South-Western.
4. Bodie, Z., (2004). Essentials of Investments, 5th Edition, New York: McGraw-Hill.
5. Frank J. F. & Pamela P. D. (2009): Finance: capital markets, financial management, and
investment management. New Jersey: John Wiley $ Sons.