Course Information Undergraduate prospectus

Investment Management

Course summary

Course code: FINA1107
Level: 6
Credits: 30
School: Business Faculty
Department: Accounting and Finance
Course Coordinator(s): Golam Sarwar

Specification

Pre and co requisites

FINA 1095 Managing Business Finance

Aims

This course introduces participants to the latest knowledge of investment analysis and portfolio management, taking a global perspective and considering a variety of asset classes. It aims to describe the techniques for the analysis and management of investment and risk used by the investment industry. In addition, this course places greater emphasis on asset allocation and valuation techniques of fixed income investments, equity investments, derivatives and alternative investments.

Learning outcomes

On successful completion of this course a student will be able to:

1. Critically examine different asset classes and implement global asset allocation strategies.
2. Apply appropriate techniques for valuation and management of fixed income and equity investments.
3. Evaluating derivatives and alternative investments with a critical awareness of the potential problems that may ensue.
4. Investigate and implement the asset pricing models with an awareness of the market efficiency issues.
5. Measure and interpret the performance of portfolios in an objective fashion.

Indicative content

Bond Valuation 1: Bond Prices and yields
Bond Valuation 2: The term structure of interest rates and yield curve + Managing Bond Portfolios
The Efficient Market Hypothesis and Behavioural Finance and Technical Analysis
Portfolio Theory and Practice (1)
Portfolio Theory and Practice (2)
Equilibrium Capital Markets: CAPM, APT and Multifactor Models of Risk and Return
An introduction to different asset classes and financial instruments
Investment in International Markets (replaces the behavioural finance lecture which is now merged with the efficient market hypothesis lecture)
Equity Portfolio Analysis and Valuation (1)
Equity Portfolio Analysis and Valuation (2)
Financial Statement Analysis
Derivatives 1: Instruments
Derivatives 2: Trading Strategies
Warrants and Convertibles
Ethical Investment Practises (replaces the Equity Portfolio Analysis and Valuation (3) lecture)
Alternative Markets: Hedge Funds, Mutual Funds, Real Estate and Mortgage Markets
Investment in structured products (replaces bond valuation 3, which now consists of two lectures)
Portfolio Performance Evaluation
Risk Management Strategies

Teaching and learning activity

This course will be delivered through 2 hour weekly lectures and one hour seminars. The course will use formal lectures to introduce students to the basic areas of knowledge. Students will extend their knowledge by reading academic papers that form the basis of the lecture. The seminars will be used as a forum for a critical discussion of the literature and related methodologies.

Assessment

Coursework Research Based Essay - 40% weighting; 40% pass mark; outline details: Research based essay; tests learning outcomes:(1),(4),(5).

Exam - 60% weighting; 40% pass mark; 3 hours; outline details: A closed book exam; tests learning outcomes:
(1)-(5).