Module Information

Module Identifier
Module Title
Academic Year
Semester 2 (Taught over 2 semesters)

Course Delivery

Delivery Type Delivery length / details
Lecture 30 Hours.
Seminars / Tutorials 8 Hours.


Assessment Type Assessment length / details Proportion
Semester Exam 3 Hours   Unseen written examination  80%
Semester Assessment Individual in-class test  Coursework, representing 20% of overall module marks  20%
Supplementary Exam 3 Hours   Unseen written examination  100%

Learning Outcomes

On successful completion of this module students should be able to:

  • Measure and evalute risk and return

* Distinguish between individual asset risk and systematic risk

* Apply key analytical techniques for investment analysis

* Evalute the practical relevance of classic theories of investment

* Analyse options and other derivative assets

* Analyse fixed income securities and the term structure of interest rates


This module aims to provide students with a thorough treatment of (i) the attributes and uses of key investment instruments; (ii) the investment problem; and (iii) investment decision making. From a foundation of theory, we use discursive and numerical approaches to unlock this fascinating area. The themes of investment value, return and risk run through the module.


Note: These topics will not fit neatly into weekly lectures. We will cover the topics in the following order, taking time as needed to cover each.

  • Review of essential present value calculations
  • Fixed income securities (bonds)
  • The term structure of interest rates
  • Review of essential statistics
  • Equity securities (shares) and portfolio theory
  • The capital asset pricing model and the arbitrage pricing theory
  • Derivative financial instruments
  • Review

Reading List

Supplementary Text
Blake, D. Financial Market Analysis Primo search Bodie, Z. and Merton, R. Finance Primo search Brearley, R., Myers, S. and Allen, F. Principles of Corporate Finance Primo search Elton, E., Gruber. M., Brown, S. and Goetzmann, W. Modern Portfolio Theory and Investment Analysis Primo search Sharpe, W., Alexander, G. and Bailey, J. Investments Primo search


This module is at CQFW Level 6