Course Details in

Module Title	LM International Investment
School	Birmingham Business School
Department	Economics
Module Code	07 27182
Module Lead	Zhenya Liu
Level	Masters Level
Credits	10
Semester	Semester 2
Pre-requisites
Co-requisites
Restrictions	None
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