Investment Analysis & Portfolio Management
- Management Sciences
- 700 level
- 2 credit units
- 206 pages
- 16 units
This course introduces postgraduate diploma students to the principles and practices of investment and portfolio management. It covers portfolio selection under uncertainty, market analysis, and the implications of efficient market theory. Students will learn about financial statement valuation, alternative asset selection, and portfolio performance evaluation using mean-variance models. The course also explores regulatory institutions in the Nigerian financial market and various investment techniques.
About this course
- Difficulty
- Intermediate
- Study hours
- 150 hours
- Maths
- Intermediate
- Content
- Theoretical, practical, case study
- Practical work
- No
- Assignments
- Tutor marked assessments
- Final examination
What you'll read
The real module and unit structure of BFN721, taken from the course material NOUN publishes.
- UNIT 1 ACTIVITIES INVOLVED IN MAKING SELECTION AMONG ALTERNATIVE FINANCIAL ASSETS INVESTMENTS
- UNIT 2 IMPLICATION OF EFFICIENT MARKET THEORY FOR INVESTORS’ PROFITABILITY
- UNIT 3 VALUATION OF FINANCIAL STATEMENTS AND SELECTION OF ALTERNATIVE FINANCIAL ASSETS- ANALYSIS OF QUOTED EQUITIES
- UNIT 4: VALUATION OF UNQUOTED EQUITIES
- UNIT 5 THE PROFITABILITY INDEX(Discounting Technique)
One paragraph, so you can see how it reads
BFN721 · UNIT 1 RISK AND UNCERTAINTY IN PORTFOLIO MANAGEMENT
The study unit will tell you when to read your other materials. Jut as a lecturer might give you an in-class exercise, your study units also provide assignments for you to do at appropriate points.
What you should be able to do
- Evaluate investment opportunities in financial markets
- Construct and manage diversified investment portfolios
- Apply risk management strategies to investment decisions
- Analyze financial statements for investment valuation
- Understand the role of regulatory institutions in financial markets
- Apply capital budgeting techniques to investment projects
What it prepares you for
- Portfolio Manager
- Financial Analyst
- Investment Advisor
- Fund Manager
- Financial Consultant
- Banking
- Investment Management
- Insurance
- Financial Consulting
- Pension Funds
Where it gets hard
The units students slow down on, and what makes each one heavy.
- MODULE 3:
Unit 4 Current State of empirical evidence of models for evaluating portfolio performance
Requires strong understanding of statistical concepts and regression analysis.
- MODULE 3:
Unit 5 Capital Asset Pricing Model (CAPM)
Requires a solid grasp of mathematical concepts and financial modeling.
A suggested way through it
13 weeks, about 167 hours in total. Yours will differ.
- Week 1MODULE 1
Unit 1: Risk and uncertainty in portfolio management · 8 hours
Read Unit 1: Understand the different types of risk (systematic, unsystematic, business, financial, etc.). Analyze real-world examples of risk events and their impact on investment portfolios.. Complete Tutor-Marked Assignment 1..
Unit 2: Portfolio theory · 7 hours
Read Unit 2: Understand the concept of portfolio diversification and its role in risk reduction.. Solve numerical problems related to portfolio risk and return calculation.. Review the relationship between investments (positive, negative, no correlation)..
Unit 3: Portfolio selection · 8 hours
Read Unit 3: Understand the concept of feasible and efficient sets of portfolios.. Analyze the limitations of the Markowitz model.. Differentiate between efficient and inefficient portfolios..
- Week 2MODULE 2
UNIT 1: Regulatory institutions in the Nigeria financial market – CBN · 7 hours
Read Unit 1: Understand the role of the CBN in regulating the Nigerian financial market.. Analyze the CBN's policy implementation and its impact on investment decisions.. Discuss the historical background of the Central Bank of Nigeria..
Unit 2 Regulatory institutions in the Nigeria financial market –NDIC · 8 hours
Read Unit 2: Understand the role of the NDIC in protecting depositors and ensuring banking system stability.. Discuss the historical development of the NDIC.. Outline the functions of the NDIC in the banking sector..
Unit 3 Regulatory institutions in the Nigeria financial market – SEC · 7 hours
Read Unit 3: Understand the role of the SEC in regulating the Nigerian capital market.. Analyze how the SEC protects the investing public.. State the functions of SEC..
- Week 3MODULE 3:
Unit 1 Money market operations · 8 hours
Read Unit 1: Understand the instruments traded in the money market.. State the functions of the money market.. Know the operators in the financial market..
Unit 2: Capital market operations · 7 hours
Read Unit 2: Understand the instruments traded in the capital market.. State the importance of the Nigerian capital market.. Know the operators in the capital market..
- Week 4MODULE 3:
Unit 3 Capital market investment as aid to Economic Development · 8 hours
Read Unit 3: Understand how capital market investment aids economic development.. State the roles of the capital market in economic development.. Understand how the capital market currently aids the economy..
Unit 4 Current State of empirical evidence of models for evaluating portfolio performance · 7 hours
Read Unit 4: Understand the empirical debates on the models for evaluating portfolio performance.. Understand the procedures in estimating and evaluating asset pricing models.. Understand the pitfalls in the current practice and suggestions for improving empirical work..
- Week 5MODULE 3:
Unit 5 Capital Asset Pricing Model (CAPM) · 8 hours
Read Unit 5: Understand the concept of risk and Capital Asset Pricing Model (CAPM).. Understand the assumptions and implications of CAPM.. Solve numerical problems related to CAPM..
- Week 6MODULE 4
Unit 1 Activities involved in making selection among alternative Financial Assets Investments · 9 hours
Read Unit 1: Understand the factors to consider in portfolio planning.. Analyze the different stock selection strategies.. Understand the concept of investment timing..
- Week 7MODULE 4
Unit 2 Implication of Efficient Market theory for investors' profitability · 9 hours
Read Unit 2: Understand the tests of weak form efficiency.. Understand the tests of semi-strong form efficiency.. Understand the tests of strong form efficiency..
- Week 8MODULE 4
Unit 3 Valuation of financial statements and selection of alternative Financial Assets- analysis of Quoted equities · 9 hours
Read Unit 3: Understand the balance sheet valuation model.. Understand the dividend discount model.. Understand other valuation models..
- Week 9MODULE 4
Unit 4: Valuation of unquoted equities contents · 9 hours
Read Unit 4: Understand why to value unquoted equities.. Understand the dividend yield method.. Understand the super profit method..
- Week 10MODULE 5
Unit1 Payback Period (Non- Discounting Technique) · 8 hours
Read Unit 1: Understand the meaning of payback period.. Solve numerical problems related to payback period.. Understand the advantages and disadvantages of the payback period technique..
Unit2 Accounting Rate of Return (Non- Discounting Technique) · 7 hours
Read Unit 2: Understand the meaning of accounting rate of returns.. Solve numerical problems related to accounting rate of returns.. Understand the advantages and disadvantages of accounting rate of returns..
- Week 11MODULE 5
Unit 3 The Net Present Value (NPV) (Discounting Technique) · 8 hours
Read Unit 3: Understand the assumptions underlying the basic discounted cash flow appraisal.. Solve numerical problems related to Net Present Value (NPV).. Understand the advantages and disadvantages of Net Present Value (NPV)..
Unit 4 The Internal Rate of Return I (Discounting Technique) · 7 hours
Read Unit 4: Understand the Internal Rate of Return (IRR).. Solve numerical problems related to Internal Rate of Return (IRR).. Understand the advantages and disadvantages of Internal Rate of Return (IRR)..
- Week 12MODULE 5
Unit 5 The Profitability Index (Discounting Technique) · 8 hours
Read Unit 5: Understand the Profitability Index.. Solve numerical problems related to Profitability Index.. Understand the advantages and disadvantages of Profitability Index..
- Week 13Final Revision
Final Revision · 10 hours
Review all modules and units.. Work on assignments.. Prepare for final examination..
Preparing for the exam
- Create a study schedule allocating specific time for each module and unit, focusing on high-weight topics.
- Practice numerical problems from Units 1-3 weekly to reinforce calculation skills for portfolio risk and return.
- Develop concept maps linking Units 4-5 asset pricing models (CAPM, APT) to understand their assumptions and limitations.
- Review past TMAs and identify areas of weakness, focusing on those topics in subsequent study sessions.
- Summarize key regulatory frameworks (CBN, NDIC, SEC) from Module 2 and their impact on investment strategies.
- Practice applying valuation techniques (dividend discount model, P/E ratio) from Module 4 to real-world company data.
- Focus on understanding the decision rules for capital budgeting techniques (NPV, IRR, Profitability Index) from Module 5.
- Allocate extra time to challenging units identified in 'Peak Difficulty Periods' and seek clarification from tutors if needed.
Questions students ask about this course
What is BFN721 about?
This course introduces postgraduate diploma students to the principles and practices of investment and portfolio management. It covers portfolio selection under uncertainty, market analysis, and the implications of efficient market theory. Students will learn about financial statement valuation, alternative asset selection, and portfolio performance evaluation using mean-variance models. The course also explores regulatory institutions in the Nigerian financial market and various investment techniques.
How many units does BFN721 have?
BFN721, Investment Analysis & Portfolio Management, has 16 units across 4 modules, over 206 pages of course material. You can read it one unit at a time.
How many credit units is BFN721?
BFN721 carries 2 credit units, at 700 level in Management Sciences.
Is BFN721 hard?
BFN721 is rated intermediate level, with intermediate mathematical content. It is mostly theoretical, practical and case study work.
How long does BFN721 take to study?
About 150 hours of study, spread across its 16 units.
How is BFN721 assessed?
BFN721 is assessed by assignments, tutor marked assessments and final examination.
What can I do with BFN721?
Portfolio Manager, Financial Analyst, Investment Advisor, Fund Manager and Financial Consultant.