This is an applied module, with significant focus on problem solving and practical problems. The first half of the module concerns designing an investment approach, risk appetite, portfolio construction, risk measurement, managing an investment portfolio, and portfolio performance. The second half concerns managing a fixed income portfolio, using options, futures and other derivatives.
Semester one topics include:
The Investment Planning Process, client circumstances and client risk tolerance
Asset allocation
Modern Portfolio Theory
Asset Pricing Theories
Market Efficiency
Behavioural Finance
Fund Management
Portfolio Analysis and Appraisal
Semester two topics include:
Financial Derivatives – including options, futures and swap contracts
Fixed Income Securities
Exchange Rate Risk.
Learning Outcomes
By the end of the module students should be able to:
Analyse, critically appraise, define, discuss and explain the investment planning process and importance of setting investment objectives.
Analyse, critically appraise, define, discuss and explain asset allocation, portfolio theory, and applied portfolio management and performance.
Analyse, critically appraise, define, discuss and explain theory and evidence of efficient capital markets, empirical challenges to market efficiency, and contributions from behavioural finance.
Analyse, critically appraise, define, discuss and explain the nature and pricing of derivative securities.
Analyse, critically appraise, define, discuss and explain the valuation and management of fixed income investments.
Analyse, critically appraise, define, discuss and explain the foreign exchange rates and risks involved in global investment.
Assessment
22682-03 : Exam : Exam (Centrally Timetabled) - Written Unseen (50%)
22682-05 : Group Portfolio : Group Assessment - Coursework (25%)
22682-06 : Canvas Quiz 1 : Class Test (12.5%)
22682-07 : Canvas Quiz 2 : Class Test (12.5%)