Portfolio Theory and Investment Analysis is a course that discusses various investment theories and concepts and how to apply them in portfolio management and financial asset allocation strategies. The topics covered in this course are the basic concepts of consumption and investment, financial capital investment instruments, and the mechanism of trading in the capital market.

Before discussing the valuation concepts of various financial capital market investment instruments, the course will discuss the concept of risk and return first because that is necessary to understand the concept correctly. Furthermore, the course discusses portfolio concepts and theories, the Single Index Model is followed by the equilibrium models, the Capital Asset Pricing Model (CAPM) and Arbitrage Pricing Theory (APT), accompanied by empirical testing. This course also discusses how to evaluate and assess stocks, bonds and derivative securities, efficient markets and their anomalies, fundamental analysis and technical analysis. The last section will discuss the analysis and evaluation of portfolio performance and international diversification.