ECONOMICS AND FINANCE
Bachelor	TR-NQF-HE: Level 6	QF-EHEA: First Cycle	EQF-LLL: Level 6

Course Introduction and Application Information

Course Code	Course Name	Semester	Theoretical	Practical	Credit	ECTS
IF3231	Fundamental Analysis and Investment Strategies	Fall	3	0	3	6

Basic information

Language of instruction:	English
Type of course:	Must Course
Course Level:	Bachelor’s Degree (First Cycle)
Mode of Delivery:	Face to face
Course Coordinator :	Dr. Öğr. Üyesi BAHAR KÖSEOĞLU
Course Lecturer(s):	Dr. Öğr. Üyesi HAKKI ÖZTÜRK Prof. Dr. ÜMİT EROL
Recommended Optional Program Components:	None
Course Objectives:	The course is divided into two parts. The first part is an introduction to organization and properties of international and national security markets such as NYSE, SEC, OTC, SPK and İMKB (Istanbul Stock Exchange). The first part also covers short sales and margin transsactions in İMKB, capital increase and basic information about stock splits. The second part of the course begins with fundamental analysis, effective use of financial ratios, then puts emphasis on CAPM, APT, portfolio theory and firm valuation models. The main objective of this course is to study fundamental concepts of investment theory in financial markets and to analyze the financial statements of firms.

Learning Outcomes

The students who have succeeded in this course;
I.to be able to learn organization and functioning of international and Turkish stock market
II.to be able to identify the process of underwriting and public placement stages.
III.to be able to understand the construction of different market indexes.
IV.to have a sound about basic information about stock splits.
V.to be able to analyze the financial statements of a firm
VI.to be able to learn the theory and practical applications of CAPM and APT.
VII.to be able learn how to calculate the risk and return of a portfolio.
VIII.to be able to measure portfolio performance.
IX.to be able to evaluate firms with valuation methods

Course Content

Security markets, public placement, valuation, risk, investment funds

Weekly Detailed Course Contents

Week	Subject	Related Preparation
1)	Organization and Functioning of International and Turkish Security Markets, SEC, SPK, İMKB (Istanbul Stock Exchange), US Stock Markets, NYSE, OTC, NASDAQ System,
2)	Public Placement Stages, Types of Underwriter Organization and Functioning of International and Turkish Security Markets, SEC, SPK, İMKB (Istanbul Stock Exchange), US Stock Markets, NYSE, OTC, NASDAQ System,
3)	Public Placement Stages, Types of Underwriter.
4)	Short Sales and Margin Transsactions in BIST.
5)	Short Sales and Margin Transsactions in BIST.
6)	Basic Information About Stock Splits, Capital Increase, Bonus Issues, Right Issues, Dividends, Pre-emptive Right
7)	Different Index Calculation Methods, Constructing Market Indexes, Alternative Index Types, IMKB Index Properties.
8)	Financial Statements, Use of Financial Ratios in Fundamental Analysis.
9)	Primary Value Concepts, Efficient Market Hypothesis, Risk and Return Concepts, Expected Return, Measuring Risk Capital Asset Pricing Model (CAPM) and Arbitrage Pricing Theory(APT)
10)	Risk Free Rate, Estimation of Beta, Risk Premium. Applications of CAPM and APT
11)	Portfolio Management, Markowitz Portfolio Theory, Expected Portfolio Return, Portfolio Risk, Efficient Frontier, Capital Market Line
12)	Minimizing Risk, Maximizing Return and Finding Optimal Portfolio Weights by Lagrange Method.
13)	Investment Funds and Portfolio Performance Measures
14)	An Overview of Firm Valuation Models: Asset Based Valuation, Income Based Valuation (Discounted Cash Flow Valuation), Relative Valuation (Market Based Valuation)

Sources

Course Notes / Textbooks:	Investment Analysis and Portfolio Management by F.Reilly and K. Brown.
References:	Investments by Zvi Bodie, Alex Kane, Alan J Marcus, 6th. Edition, McGraw-Hill.

Evaluation System

Semester Requirements	Number of Activities	Level of Contribution
Project	1	% 10
Midterms	1	% 45
Final	1	% 45
Total		% 100
PERCENTAGE OF SEMESTER WORK		% 45
PERCENTAGE OF FINAL WORK		% 55
Total		% 100

ECTS / Workload Table

Activities	Number of Activities	Duration (Hours)	Workload
Course Hours	14	3	42
Study Hours Out of Class	14	1	14
Project	1	20	20
Midterms	1	30	30
Final	1	40	40
Total Workload			146

Contribution of Learning Outcomes to Programme Outcomes

No Effect	1 Lowest	2 Low	3 Average	4 High	5 Highest

	Program Outcomes	Level of Contribution
1)	Build up a body of knowledge in mathematics and statistics, to use them, to understand how the mechanism of economy –both at micro and macro levels – works.	4
2)	Understand the common as well as distinctive characters of the markets, industries, market regulations and policies.	4
3)	Develop an awareness of different approaches to the economic events and why and how those approaches have been formed through the Economic History and understand the differences among those approaches by noticing at what extent they could explain the economic events.	5
4)	Analyze the interventions of politics to the economics and vice versa.	5
5)	Apply the economic analysis to everyday economic problems and evaluate the policy proposals for those problems by comparing opposite approaches.	3
6)	Understand current and new economic events and how the new approaches to the economics are formed and evaluating.	3
7)	Develop the communicative skills in order to explain the specific economic issues/events written, spoken and graphical form.	4
8)	Know how to formulate the economics problems and issues and define the solutions in a well-formed written form, which includes the hypothesis, literature, methodology and results / empirical evidence.	4
9)	Demonstrate the quantitative and qualitative capabilities and provide evidence for the hypotheses and economic arguments.	3
10)	Understand the information and changes related to the economy by using a foreign language and communicate with colleagues.	4