CHINHOYI UNIVERSITY OF TECHNOLOGY

ACCOUNTING SCIENCE AND FINANCE DEPARTMENT

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7724, CHINHOYI, ZIMBABWE
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Website: www.cut.ac.zw
E-mail: jmabvure@cut.ac.zw, jmabvure@gmail.com

The Chairpersons Office

COURSE OUTLINE MARCH-JUNE 2025

Course: Investment Analysis and Portfolio Management
Course Code: CUACM404
Lectures: 12 hours per week
Tutorials: One (1) Tutorial per week
Total Weeks of Engagement: Three (3) Weeks

CONTACT INFORMATION
Lecturer: Joseph Mashonganyika (Mr.)
School: Entrepreneurship and Business Management
Department: Accounting Science and Finance
Office Hours: 8am-4.00pm
Consultation Times: Wednesday 2.00pm-4.30pm, or by Appointment on any other
date (If it’s very critical please)
Address: Prefab 1, Office 1
Telephone: +2632672122203-5 Ext 1222
Cellphone: (8am-4.30pm Daily) +263773232916 (Voice calls,
Whatsapp and messages)
E-mail: jmashonganyika@cut.ac.zw

Mr. J. Mashonganyika Page 1

1 Rationale

This course introduces risk-return concepts, debt and equity securities, and options
and futures contracts. The course uses a Portfolio Project to evaluate the array
of financial instrument investment alternatives and their risk profile. Participants
analyze expected return characteristics, individually and in combination within a
portfolio both using computer models and physically. Different investment
strategies and valuation models are used to understand basic investment principles and
practices.

2 Purpose
The aim of this course is to provide the student with a thorough grounding in the
analysis of investment securities and portfolios as well as manage the investments
portfolios.

3 Main Capabilities
On completion of this course candidates should be able to:
 Gain a firm grasp of theoretical concepts underlying modern portfolio theory.
 Understand and apply theoretical concepts to real-world investment analysis.
 Learn about and evaluate investment alternatives, their risks, and their expected
return characteristics using computer aided models.
 Discuss investment strategies and valuation models while applying them to
sample client situations.
 Calculate various measures of investment risk and return used in portfolio
analysis and construction; understand methods of evaluating investment results
using computer aided models.

4 Methods of Teaching
Each section of the course outline will be thoroughly discussed (taught) in the
lecture, with comprehensive examples articulated to the students.

4.1 Lectures
Lectures will be held twice a week at times and venues specified by the timetable.
The actual duration of a lecture during the semester will be two hours. Attendance
at lectures is compulsory. Any PowerPoint / Overhead slides used during lectures
will normally be available on the E Learning prior to the lectures but they are not
an adequate substitute for the lecture sessions. They may, for example, contain
questions but attendance at lectures is necessary for discussion of possible
answers.

4.2 Tutorials
Tutorials begin in the second week of the course and are held approximately
every second week on class agreed days. Each tutorial is designed to develop
 skills that are essential in all professional careers (e.g.analysis, critical thinking,
writing, listening, speaking and making judgments). They are also an opportunity
to interact with the course lecturers and fellow class members in a smaller group
setting. Before attending each tutorial you are expected to have completed the
relevant reading for the week and considered any tutorial material which has been
distributed in advance. The tutorials will not necessarily relate directly to the
material covered in lectures as they are attempting to cover other aspects of the
course.

4.3 Consultations
If you have queries about the course, or the course material, you are welcome to
discuss these with the course lecturers

5 Off-Campus Field Experiences

5.1 Funds permitting the students are supposed to go off campus once during the
semester when the course will be on offer for educational tours. The places that
can be visited by students are:
5.1.1 Electricity Generation plants-to have appreciation of energy accounting,
Economics, and Finance
5.1.2 Financial Institutions
5.1.3 Financial Analysts firms
5.1.4 Investment professional Associations

6 Diversity Statement

6.1 The course recognises that students are diverse as they come from various
backgrounds. All students should benefit from this diversity because diversity;
6.1.1 Enriches the educational experience by providing students with the
opportunity to learn from individuals who differ from themselves
6.1.2 Promotes personal growth and a healthy society by challenging
stereotyped preconceptions, encouraging critical thinking, and helping
students learn to communicate effectively with people of varied
backgrounds
6.1.3 Strengthens communities and the workplace by preparing students for
citizenship in an increasingly complex, pluralistic society, and by
fostering mutual respect and teamwork
6.1.4 Enhances the country’s economic competitiveness by effectively
developing and using the talents of all citizens

7 Technology Statement

7.1 The lecturer will use various modes of technology in and out of the classroom
 7.1.1 All live Lectures (Synchronous learning) will be done online Via the Big
Blue Button (BBB) platform
7.1.2 Recordings of the lectures will be made available via the BBB platform.
This is ideal for asynchronous learning
7.1.3 No lectures will be conducted via the Whatsapp platform
7.1.4 The Whatsapp platform and other messaging platforms will only be used
for communication purposes with students.
7.1.5 Teaching materials and other resources will be uploaded on the e-
learning portal and students will access the material via the Virtual
Learning Environment (VLE).
7.1.6 Students will do quizzes and tests online from time to time. They will be
using the Virtual Learning Environment (VLE) for that purpose. We may
also use platforms such as Socrative, Moodle, Balckboard, etc.
7.1.7 Students enrolled in this course will use email, PowerPoint, excel, word,
laptops, desktops, and projection equipment to enhance their learning in
the course.

8 Academic Misconduct Statement

8.1 Academic misconduct of any kind will not be tolerated or accepted.

8.2 If students have questions as to what is regarded as academic conduct they

should consult the General academic regulations for undergraduate
programmes as well as the students ordinance number two(2).

8.3 All assignments and examinations must be completed by individual efforts.

8.4 It is expected that you complete each assignment on your own merit unless
otherwise stated.

8.5 Plagiarism software (Turnitin) will be used to check the authenticity of each
work submitted.

9 Statement of Students’ Rights

9.1 Any student with a documented disability who may require special
accommodation should self-identify to the lecturer as early in the semester as
possible to receive effective and timely accommodation.

9.2 If you need an accommodation based on the impact of a disability, you should
contact me to arrange an appointment as soon as possible.
a. Hearing impairment
b. Eyesight issues
 • Difficulties in continuously using hands to write, especially
during tests and examinations etc

9.3 At the appointment we can discuss the course format, anticipate your needs and
explore potential accommodations.

9.4 I rely on the office of the Dean of students for assistance in verifying the need
for accommodations and developing accommodation strategies.

9.5 If you have not previously contacted the office of the Dean of students, I
encourage you to do so.

10 Students Assessments
10.1 Course work comprises of tests and assignments, with 30 percent weight of the
final mark.

Assignments
Assignment questions will be assigned that require students to obtain a more in-
depth understanding of one or more sets of concepts discussed in the course. The
assignments are to be handed in at the lecture on the discussed dates. Assignments
can be completed individually or in a group of 2 or 3 students. Each of the three
assignments.

Tests
The tests will be part of the grade for the course. It will be written during the
course of the semester. Questions in the tests will cover all the pertinent aspects of
the course covered up to the time of the test, and will serve as mock exams, in
preparation for the final exam. Tests will not overlap.

10.2 Final examination

The final examination (3 hours) is worth 70% of the grade for the course. The
date of the final examination to be advised.*

a. The final mark will be a summation of course work and the exam mark.

b. The lecturer will provide course evaluation forms to students, once

completed, to be submitted to the chairman before the students write the
exam. The chairman will provide feedback to the lecturer.

c. University Grading System

Range of Marks Degree Class Description Detailed Description

 +
85% - 100% A Distinction Excellent. First Class Standing. Superior
80% - 84% A Distinction Performance showing comprehensive, in-depth
understanding of subject matter. Demonstrates
initiative and fluency of expression.
-
75% - 79% A Distinction Very Good. Second Class Standing. Clearly
+
70% - 74% B Merit above average performance with knowledge of
principles and facts generally complete and with
no serious deficiencies.
65% - 69% B Merit Satisfactory. Basic understanding with
-
60% - 64% B Merit knowledge of principles and facts at least adequate
to communicate intelligently in the discipline.

11 Content

a. The Investment Environment

 Securities Markets
 Capital Markets vs. Money instruments
1) Bonds
a. Characteristics
b. Prices
c. Default risk
d. Yields and pricing
e. Bond Management
f. Bond duration
g. Convexity and dispersion
h. Bond immunizations
2) Treasury bills
3) Certificates of deposits
4) Trade bills
5) Commercial paper
6) Equity
 Balance Sheet Valuation techniques
 Dividend Valuation technique
 Price/Earnings ratio
 Investments decisions in various investment vehicles

b. Markowitz Portfolio theory

 Calculating expected returns and standard deviations
 The efficiency frontier, covariance and correlation between securities

c. Capital Allocation and security selection

 The utility function
 The Capital Allocation Line
 The optimum risky portfolio
  Capital Allocation line vs. Security Market line and Capital Market line
 Passive strategy-The Capital Market Line vs. the Capital Allocation Line

d. Equilibrium in Capital Markets

 Capital Asset Pricing Model
 Single Index Model
 Application of Single Index Model in practice

e. Market Efficiency
 Event studies
 Tests of the Efficient Market Hypothesis

f. Derivatives
 Options
1) Definition of terms
2) Valuation basics
 Forwards and Futures
1) Definition of terms
2) Valuation basics
3) Hedging
4) Index Arbitrage with futures
 Swaps
 Interest rate derivatives
 Foreign currency hedging instruments
 Strategies and Techniques of hedging
g. Valuation of derivatives
 Valuation of options using Black and Scholes, decision trees
 Put call parity
. Advanced Risk analysis
 Cost of capital
 the cost of equity (CAPM and dividend growth model)
 the cost of debt
 the weighted average cost of capital (WACC)
 The impact of varying capital structures on the cost of capital.
 Interest rate and foreign exchange risk
 the identification of interest rate and foreign exchange exposure
 yield curves and their significance to financial managers
 hedging risk using forwards, futures, options, swaps, FRAs and other
products
 The scope and benefit of financial engineering.
8.9 Investment decisions
 Decision making techniques
 detailed knowledge of discounted cash flow(NPV)
 adjusted NPV (APV)
 portfolio theory and CAPM and their value to managers
  Options embedded in investments (basic knowledge

REFERENCES

Blake. D., (latest Edition), Financial Market Analysis, McGraw-Hill-

London UK

Bodie Z., Kane A., Marcus A.J., Investments; 6th Edition, Tata McGraw-
Hill Publishing Company Limited; New Delhi, India.

Bodie, Kane and Marcus (BKM ,Essentials of Investments, 9th edition

by McGraw-Hill Irwin

Elton, E, Grubber, M;(Latest Edition), Modern Portfolio Theory and

Investment Analysis Wiley and Son, New York.

Farrel, J, L (jnr), Portfolio Management, Theory and Applications.

Francis, J, C, (Latest Edition), Options, Futures and Other Derivatives,

Prentice-Hall, Saddle River, NJ.

Grinblatt, M, Titman, S, (Latest Edition), Financial Markets and

Corporate Strategy, Irwin McGraw Hill, Burr Ridge, USA.

Pandey, I, M, Financal Management.

Radcliffe, R, (Latest Edition), Investments, Concepts, Analysis and

Strategy, Harper Collins, Florida, USA.

Reilly, F, K; Brown, K, C;(latest Edition), Investment Analysis and

Portfolio Management, Thompson South Western publishing, USA.

Sharpe, W, F (Latest Edition), Investments, Prentice Hall, Engle Wood

Cliffs, USA.

Academic Journals