BUSINESS ADMINISTRATION
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
Spring
3 0 3 6
The course opens with the approval of the Department at the beginning of each semester

Basic information

Language of instruction: En
Type of course: Departmental Elective
Course Level: Bachelor
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
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 Outputs

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: 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
Attendance 0 % 0
Laboratory 0 % 0
Application 0 % 0
Field Work 0 % 0
Special Course Internship (Work Placement) 0 % 0
Quizzes 0 % 0
Homework Assignments 0 % 0
Presentation 0 % 0
Project 1 % 10
Seminar 0 % 0
Midterms 1 % 45
Preliminary Jury 0 % 0
Final 1 % 45
Paper Submission 0 % 0
Jury 0 % 0
Bütünleme % 0
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
Laboratory 0 0 0
Application 0 0 0
Special Course Internship (Work Placement) 0 0 0
Field Work 0 0 0
Study Hours Out of Class 14 1 14
Presentations / Seminar 0 0 0
Project 1 20 20
Homework Assignments 0 0 0
Quizzes 0 0 0
Preliminary Jury 0 0 0
Midterms 1 30 30
Paper Submission 0 0 0
Jury 0 0 0
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) Being able to identify problems and ask right questions
2) Having problem solving skills and developing necessary analytical attitude
3) Comprehending theoretical arguments along with counter arguments in detail
4) Gaining awareness of lifelong learning and being qualified for pursuing graduate education
5) Applying theoretical concepts in project planning
6) Communicating efficiently by accepting differences and carrying out compatible teamwork
7) Increasing efficiency rate in business environment
8) Developing innovative and creative solutions in face of uncertainty
9) Researching to gather information for understanding current threats and opportunities in business
10) Being aware of the effects of globalization on society and business while deciding
11) Possessing digital competence and utilizing necessary technology
12) Communicating in at least one foreign language in academic and daily life
13) Possessing managing skills and competence
14) Deciding with the awareness of the legal and ethical consequences of business operations
15) Expressing opinions that are built through critical thinking process in business and academic environment