Information Package / Course Catalogue
Securities Analysis and Portfolio Management
Course Code: ISL333
Course Type: Required
Couse Group: First Cycle (Bachelor's Degree)
Education Language: Turkish
Work Placement: N/A
Theory: 3
Prt.: 0
Credit: 3
Lab: 0
ECTS: 5
Objectives of the Course

The financial markets have gained increasing importance during the globalization process. A large number of instruments are traded in these markets. The aim of this course is to teach the students scientific techniques that they would use when they invest in these instruments and instill the mindset of a rational investor in them.

Course Content

Financial Markets, Capital Markets, Equity Capital Markets, Derivatives Markets, CMB, ISE, VOB Securities concept, portfolio definition, the traditional portfolio theory and modern portfolio theory , efficient markets hypothesis, introduction to Markowitz's portfolio theory , measurement of return and risk of a portfolio, introduction to capital asset pricing model(CAPM) ,Arbitrage Pricing Model, Portfolio performance evaluation, active - passive portfolio management, international diversification.

Name of Lecturer(s)
Learning Outcomes
1.Defines types of financial assets.
2.Performs risk and return analyses.
3.Applies fundamental and technical analysis methods.
4.Explains principles of portfolio diversification and optimization.
5.Interprets capital market instruments.
6.Measures and evaluates portfolio performance.
Recommended or Required Reading
1.Yatırım Analizi ve Portföy Yönetimi (8.Baskı), Prof. Dr. Mehmet BAHA KARAN, Gazi Kitapevi, 2022
2.Investment Analysis and Portfolio Management, Frank K. Reilly and Keith C. Brown (8th Edition), 2005
Weekly Detailed Course Contents
Week 1 - Theoretical
Financial Systems, Capital Markets, and Securities
Week 1 - Preparation Work
Review the basic functions of financial systems and identify the main types of financial institutions, markets, and securities.
Week 2 - Theoretical
The Time Value of Money
Week 2 - Preparation Work
Review the concepts of simple and compound interest and practice basic present value and future value calculations.
Week 3 - Theoretical
Measurement of Investment Returns
Week 3 - Preparation Work
Review percentage change calculations and examine examples of holding-period, arithmetic, geometric, nominal, and real returns.
Week 4 - Theoretical
Measurement of Investment Risk
Week 4 - Preparation Work
Review basic concepts of probability, expected value, variance, and standard deviation.
Week 5 - Theoretical
Bond Valuation, Yield to Maturity, and Duration
Week 5 - Preparation Work
Review present value calculations and examine the basic characteristics of coupon bonds, zero-coupon bonds, and bond cash flows.
Week 6 - Theoretical
Equity Valuation I: Dividend Discount Models
Week 6 - Preparation Work
Review the concepts of dividends, growth rates, required rates of return, and present value.
Week 7 - Theoretical
Equity Valuation II: Multiples-Based Valuation and Fundamental Analysis
Week 7 - Preparation Work
Review commonly used valuation multiples, including the price-to-earnings, price-to-book, and enterprise value-to-EBITDA ratios.
Week 8 - Theoretical
Financial Statement Analysis and Financial Ratio Analysis
Week 8 - Preparation Work
Review the basic structure of the balance sheet, income statement, and cash flow statement.
Week 9 - Theoretical
Technical Analysis
Week 9 - Preparation Work
Review the concepts of market price, trading volume, trends, support, resistance, and chart types.
Week 10 - Theoretical
Modern Portfolio Theory: Diversification and Portfolio Risk
Week 10 - Preparation Work
Review expected return, variance, standard deviation, covariance, and correlation.
Week 11 - Theoretical
The Efficient Frontier, the Risk-Free Asset, and Optimal Portfolio Selection
Week 11 - Preparation Work
Review the principles of diversification and the risk–return characteristics of two-asset portfolios.
Week 12 - Theoretical
The Capital Asset Pricing Model, Beta, and the Security Market Line
Week 12 - Preparation Work
Review systematic risk, unsystematic risk, covariance, market return, and the risk-free rate.
Week 13 - Theoretical
Portfolio Performance Evaluation and the Efficient Market Hypothesis
Week 13 - Preparation Work
Review the concepts of portfolio return, portfolio risk, beta, benchmark return, and market efficiency.
Week 14 - Theoretical
Derivative Securities and General Course Review
Week 14 - Preparation Work
Review the basic characteristics of forwards, futures, options, and swaps, and revise the main concepts covered throughout the course.
Assessment Methods and Criteria
Type of AssessmentCountPercent
Assignment1%5
Quiz1%10
Midterm Examination1%25
Final Examination1%60
Workload Calculation
ActivitiesCountPreparationTimeTotal Work Load (hours)
Lecture - Theory141356
Assignment1336
Quiz1101
Midterm Examination125126
Final Examination135136
TOTAL WORKLOAD (hours)125
Contribution of Learning Outcomes to Programme Outcomes
PÇ-1
PÇ-2
PÇ-3
PÇ-4
PÇ-5
PÇ-6
PÇ-7
PÇ-8
PÇ-9
PÇ-10
OÇ-1
5
4
4
3
3
2
1
3
2
2
OÇ-2
5
4
5
4
4
3
2
4
3
3
OÇ-3
5
4
5
4
4
3
2
4
4
4
OÇ-4
5
4
5
4
4
3
2
4
4
4
OÇ-5
4
4
4
3
3
2
1
3
3
3
OÇ-6
5
4
5
4
4
4
2
4
4
4
Adnan Menderes University - Information Package / Course Catalogue
2026