Course Objectives
The goal of this subject is that students master appropriate methods of risk analysis and yield of securities in the financial market. The classical techniques of risk management of investment portfolios, as well as methods of measuring the achieved performance will be analyzed within this subject. Besides that, the subject will address the instruments and techniques of hedging.
Learning Outcomes
The students are trained to monitor, select and choose securities when creating an appropriate investment portfolio. They will be qualified to analyze and understand the obtained results from portfolio analysis, and to distinguish the quality of management of portfolio investments. The students will be able to actively participate in the management of investments in securities of institutional investors and banks.
Course Content
Environment of modern financial market; Analysis of yield and risks of individual securities (technical and fundamental analysis); Analysis and selection of the portfolio of securities - risk and yield; Markowitz’s model of portfolio selection; Application of CAPM and index models; Equity portfolio management strategies; Bond portfolio management strategies; Hedging – term, types and hedging techniques, the use of futures, options and swap arrangements as instruments of protection of investments in securities.
Teaching Methods
Lectures, discussions, analysis of case studies and consultations. Independent research and analysis of the experience of developed countries and developing countries.
Assessment Methods
Colloquium I (0-20 points); Colloquium II (0-20 points); Final exam (0-50 points); Attendance (2point); Class activities (seminar papers, discussions, case studies) (0-8 points)
Textbooks and Other Materials
Šoškić, B. D. (2006). Securities: Portfolio Management and Investment Funds, third edition. Belgrade: Faculty of Economics;
Bodie, Z.; Kane, A.; Marcus, J. A. (2004). Investments. 5th Edition. McGraw-Hill;
Fabozzi, J. F.; Markowitz, M. H. (2002). The Theory and Practice of Investment Management. John Wiley and Sons.
