Portfolio Management

MLSMM2125  2019-2020  Mons

Portfolio Management
5.0 credits
30.0 h



None (at the master level)
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 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.

The contribution of this Teaching Unit to the development and command of the skills and learning outcomes of the programme(s) can be accessed at the end of this sheet, in the section entitled “Programmes/courses offering this Teaching Unit”.

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

Program title
Master [120] : Business Engineering

Master [120] : Business Engineering

Master [120] in Management

Master [120] in Management

Master [120] in Business Management