Equity and Portfolio Selection

Brief description

  • Share markets and types of shares
  • Multipliers and Dividendenbarwert model
  • Equity Analysis: Fundamental and Technical Analysis
  • Portfolio theory according to Markowitz and CAPM asset classes
  • Portfolio strategies: Strategic and tactical asset allocation
  • Passive and active strategies
  • Information efficiency and benchmark performance, and attribution analysis in strategic asset allocation
  • Quantitative methods for long-term and short-term forecasts of the distribution of stock returns
  • Equity investment instruments: Active and passive investment funds, ETFs, forwards/futures on indices
  • Taxation of a portfolio with forwards/futures

Mode of delivery

face to face

Type

compulsory

Recommended or required reading and other learning resources/tools

Richard A. Brealey/ Stewart Myers/Franklin Allen (2019): Principles of Corporate Finance, Mc Graw Hill, Boston, 13th edition
Frank K. Reilly/ Keith C. Brown (2018): Investment Analysis and Portfolio Management, Thomson Learning, London, 11th edition

Planned learning activities and teaching methods

Integrated course (ILV), Lecture, exercises, group work, discussion

Assessment methods and criteria

Continuous assessment (contributions by students in class) and written exam

Prerequisites and co-requisites

Fixed Income, Financial Mathematics, Descriptive and Inferential Statistics

Infos

Degree programme

Banking and Finance (engl.)

Cycle

Bachelor

ECTS Credits

3.00

Language of instruction

English

Curriculum

Full-Time

Academic year

2025

Semester

3 WS

Incoming

No

Learning outcome

After successful completion of the course, students can

  • define the nature of shares, the various forms of shares and share-like assets (derivatives on shares, share funds, certificates) and the organisation of a stock exchange
  • label the basics of the equity portfolio management process (e.g. analysis, forecasting, selection and performance measurement)
  • value shares and forward transactions on shares and share indices
  • calculate and interpret the relevant sensitivity and risk indicators for individual securities and portfolios
  • control these indicators in an equity portfolio with the aid of derivatives

Course code

1229-19-01-VZ-EN-27