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Module Title LM International Investment
SchoolBirmingham Business School
Department Birmingham Business School
Module Code 07 27182
Module Lead Zhenya Liu
Level Masters Level
Credits 10
Semester Semester 2
Pre-requisites
Co-requisites
Restrictions None
Contact Hours
Exclusions
Description The module considers foreign exchange markets and their role in international investment. It begins by focusing on factors affecting foreign exchange determination, in particular models employed in exchange rate forecasting. Portfolio theory is considered in an international context, examining concepts of risk and return, two asset portfolio theory, optimal risky portfolios and international correlations. There is an examination of international asset pricing both from a theoretical and empirical perspective, analysing the assumptions and the implications of the various models. Students are introduced to the family of GARCH models, capturing volatility clustering of time series observations. The efficient markets hypothesis is covered, considering impediments to international market integration, empirical tests and implications for investors. New financial instruments are considered in the context of making global investments. The module concludes by emphasising emerging markets investment strategies.
Learning Outcomes By the end of the module students should be able to:
  • Critically evaluate the theoretical framework of international investment, eg ways to choose investments, how to apply risk management instruments such as futures, options and alternative investments;
  • Display in-depth knowledge and understanding of the trading strategies and risk diversification in global financial markets;
  • Appraise and synthesise the relevant literature explaining how theories have been tested and the results obtained;
  • Demonstrate a practical knowledge of advanced international investment, and an overview of recent empirical research.
Assessment 27182-01 : Computer based exercises : Coursework (20%)
27182-02 : Exam : Exam (Centrally Timetabled) - Written Unseen (80%)
Assessment Methods & Exceptions Assessments:
2 hr written examination 80%
Computer-based exercises 20%

Reassessment: 2 hour exam (100%)
Other
Reading List