Portfolio Management

mlsmm2125  2020-2021  Mons

Portfolio Management
Due to the COVID-19 crisis, the information below is subject to change, in particular that concerning the teaching mode (presential, distance or in a comodal or hybrid format).
5 credits
30.0 h
D'Hondt Catherine;
Main themes
The goal of this course is to teach students the foundations
of portfolio construction and performance measurement.
Key topics include:
- Return and risk measurement (for equity, fixed-income,
and derivative portfolios)
- Portfolio construction and management techniques
- Performance attribution and presentation standards
- Private Wealth Management (Wealth Allocation

At the end of this learning unit, the student is able to :

1 At the end of this course, students will be able to:
- calculate the risk and return of financial assets using a
spreadsheet and the R software;
- select the most apporpriate return and risk computation
methods when evaluatinfg the portfolio management
strategy followed by investor risk;
- analyze the composition of the portfolio held by wealthy
individuals when making any necessary recommendation
for change;
- assess the strengths and weaknesses of active and
passive management strategies;
- construct and evaluate one's portfolio by selecting and
combining several securities.
  • Key concepts
    • Some useful reminders
    • Market Efficiency Hypothesis
    • Key players in the industry
    • Markets & execution mechanisms
    • Classification of assets
    • Market indices
  • The portfolio management process
  • Modern Portfolio Theory and beyond
    • The importance of diversification
    • The pitfalls of Modern Portfolio Theory
    • The Capital Asset Pricing Model
    • Extensions to the CAPM
  • Performance Measurement
  • Investment strategies
    • Basic strategies
    • Strategic Asset Allocation
    • Tactical Asset Allocation & Security Selection
    • Style Investment
Teaching methods

Due to the COVID-19 crisis, the information in this section is particularly likely to change.

  • Lectures
  • Stock Trak portfolio management assignment
  • Exercises
Evaluation methods

Due to the COVID-19 crisis, the information in this section is particularly likely to change.

  • Written examination (50%)
  • Ongoing assessment based on Stock Trak portfolio assignment (50%)
  • The ongoing assessment score is no longer taken into account in the second session (resit exam=100%)
Other information
  • Teaching material provided in English
  • Course taught in French
  • Bodie, Z., Kane, A., & Marcus, A. J. (2014). Investments (Vol. 10th Edition). New York: McGraw-Hill Education
  • Portfolio Management: An Overview by Robert M. Conroy, CFA and Alistair Byrne, CFA
  • Basics of Portfolio Planning and Construction by Alistair Byrne, CFA and Frank E. Smudde, CFA
Faculty or entity

Programmes / formations proposant cette unité d'enseignement (UE)

Title of the programme
Master [120] in Management

Master [120] : Business Engineering

Master [120] in Management

Master [120] : Business Engineering