Cornell · NBA5420 · Investment and Portfolio Management

NBA5420: ace the component, not just read the notes

Your complete guide to Cornell University's investment and portfolio management course. See where the marks are, work real practice questions, and study with an AI tutor that knows NBA5420.

3 credit points Graduate (MBA elective) Offered Spring ~40% exams Johnson Graduate School of Management

Sia generates NBA5420 practice questions, works through them step by step, and quizzes you on the material the component that weights most heavily.

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Worked example

Multiple choice · solution revealed after you answer

A portfolio is split 60% stocks (expected return 10%) and 40% bonds (expected return 4%). What is the portfolio's expected return?

Worked solution

A portfolio's expected return is the weighted average of its assets' expected returns.

Stocks: 0.60 × 10% = 6.0%.
Bonds: 0.40 × 4% = 1.6%.
Total = 6.0% + 1.6% = 7.6%.

The trap: Taking a simple average of the two returns ((10% + 4%)/2 = 7%) instead of weighting by the portfolio allocation. Expected portfolio return weights each asset's return by its share of the portfolio. classic slip!

your whole grade
Where your grade comes from Assignment 60% · Exams 40%

One component decides 60% of your grade. This whole page is built around that.

Overview

What NBA5420 is, and where it sits

NBA 5420 Investment and Portfolio Management is a graduate MBA elective at Cornell University's Johnson Graduate School of Management, counting as a Management Science elective. Per the Cornell course roster, it emphasises both conceptual foundations and practical implementation of investing. It is organised around the three sources of portfolio returns — strategic asset allocation, tactical asset allocation, and security selection — with an extensive module on strategic asset allocation across traditional and alternative asset classes.

The course then moves to asset pricing models and the framework for active portfolio management, including performance evaluation of asset managers, before finishing on security selection through equity screening and multi-factor models. Per the roster, the grade is based on several group cases and Excel exercises plus an individual final exam. The recurring skill is applying portfolio theory to real allocation and selection decisions — building portfolios, pricing risk, and evaluating manager performance.

How it differs from its first-year siblings. NBA 5420 is the applied investment-management elective: it takes portfolio theory into real allocation and security-selection decisions, taught through group cases and Excel exercises alongside a final, with an emphasis on practical implementation.

Difficulty & time commitment

Is NBA5420 hard, and how much time does it take?

NBA5420 is manageable if you keep a weekly rhythm and treat the back half as the main event. The pattern is consistent: it starts gently and steepens, and the heaviest assessment is the part that separates grades.

Difficulty
3.4 / 5
Moderate–Hard. Gentle early, demanding back half. Hard to fail with steady work; a top grade takes consistent practice.
Coursework
60%
Coursework carries most of the grade. The heaviest single component is the component at 60%.
Strategic asset allocation & portfolio constructionbuilds the toolkit
Security selection & multi-factor modelsapplied

The difficulty curve and the assessment weighting point the same way: the back half is harder and worth more. Front-loading effort there is the highest-return decision in the course.

Is this course for you

Who tends to do well, and who tends to struggle

You will likely do well if

  • You are comfortable with the quantitative side — portfolio maths, risk/return, and Excel modelling.
  • You can apply portfolio theory to real allocation and selection decisions.
  • You contribute effectively to the group cases and Excel exercises.

You may struggle if

  • You are rusty on the risk/return and asset-pricing fundamentals.
  • You treat the theory and the cases as unrelated.
  • You under-practise the Excel modelling the course relies on.
do this ↘
What top students do differently
  • Drill the core portfolio maths — weighted returns, variance, the risk/return tradeoff.
  • Practise the Excel exercises until asset-allocation and screening models are second nature.
  • Connect each asset-pricing model to how it informs allocation or selection.

Syllabus

The 5 topics, topic by topic

The exam-weight marker on each topic shows where the marks concentrate. The amber topics carry the highest exam weight.

T1 · Sources of portfolio returns and strategic asset allocation

Lower exam weight

T2 · Traditional and alternative asset classes

Lower exam weight

T3 · Asset-pricing models and active management

Lower exam weight

T4 · Performance evaluation of asset managers

Lower exam weight

T5 · Security selection: screening and multi-factor models

Lower exam weight

How it's assessed

Assessment structure

ComponentWeightFormat & timing
Group cases and Excel exercises60%Several group cases and Excel exercises (per Cornell roster). Across term.
Individual final exam40%Individual final exam (per Cornell roster). End of term.
Group cases and Excel exercises60%
Several group cases and Excel exercises (per Cornell roster).
Individual final exam40%
Individual final exam (per Cornell roster).
  • Letter-graded; pass on the standard institutional scale. Assessment weights are indicative — confirm the exact breakdown on your official course syllabus.
read this! If you read nothing else

This is a coursework course. Coursework carries 60% of the grade and the group cases and excel exercises is the single heaviest piece at 60%, so steady work across the semester decides your result more than any one sitting.

How to actually pass it

A weekly rhythm, two checklists, and the traps to avoid

The course rewards consistency over cramming, and practice over re-reading. Here is the loop that works, then what to have nailed before each exam.

The weekly loop

Each week
Work the portfolio and asset-pricing problems by hand and in Excel.
On group cases
Contribute to the case and Excel work steadily across the term.
Weekly
Keep a models-and-implementation sheet linking theory to allocation/selection.

Before the mid-semester checklist

Before the final heaviest topics

  • Master strategic asset allocation across traditional and alternative assets.
  • Drill asset-pricing models and the active-management framework.
  • Revise performance evaluation and multi-factor security selection.
  • Prepare for the individual final and ensure the group cases and Excel exercises are complete.

The mistakes that cost marks

01

Simple vs weighted average. Portfolio return weights each asset by its allocation; taking a simple average of returns is the classic error and propagates into risk and allocation analysis.

02

Separating theory from cases. The group cases and Excel exercises apply the theory; treating them separately loses the practical implementation the course rewards.

03

Neglecting Excel practice. The course is implementation-heavy; weak Excel modelling undermines the case and exercise work.

Teaching team

Who teaches NBA5420

No teaching staff are publicly listed for this offering. Check the official course page for the current coordinator and lecturers.

Where it fits

Prerequisites, related courses & why it matters

Graduate MBA elective at Cornell's Johnson Graduate School of Management; prerequisite NCC 5060 or an equivalent core finance course. Check the official Cornell course roster for the current offering.

Why it matters beyond the grade. Investment and portfolio management underpins careers in portfolio management, equity research, risk management, investment consulting and investment banking.

FAQ

Frequently asked questions

How is NBA 5420 assessed at Cornell?

Per the Cornell course roster, the grade is based on several group cases and Excel exercises plus an individual final exam. The AskSia guide maps the portfolio-management concepts most likely to be tested and how to implement them. Confirm the exact breakdown on your official course syllabus.

What does NBA 5420 cover?

Investment and portfolio management: the three sources of portfolio returns (strategic and tactical asset allocation and security selection), strategic asset allocation across traditional and alternative assets, asset-pricing models and active portfolio management, performance evaluation, and security selection via equity screening and multi-factor models.

Is NBA 5420 hard?

It is a moderate-to-hard MBA elective, mainly because it is quantitative and implementation-heavy — portfolio maths, asset pricing and Excel modelling. Students comfortable with the quantitative fundamentals who practise the Excel work generally find it manageable.

Who takes NBA 5420?

It is a Johnson MBA and graduate elective, especially useful for students heading into investment management, portfolio management, equity research, risk management or investment banking. The prerequisite is a core finance course (NCC 5060 or equivalent).

Study NBA5420 with Sia

Work through the core topics and the rest of the course with a tutor that knows it and quizzes you on the topics the assessments weight most heavily.

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