Module Information
Course Delivery
| Delivery Type | Delivery length / details |
|---|---|
| Lecture | 3 hours per week (including 1 hour help session) |
| Seminars / Tutorials | 10 x hour sessions |
Assessment
| Assessment Type | Assessment length / details | Proportion |
|---|---|---|
| Semester Exam | 3 Hours Unseen written examination | 80% |
| Semester Assessment | 1.5 Hours Mid Term Test | 20% |
| Supplementary Exam | 3 Hours Unseen written examination Repeat Failed Elements | 80% |
| Supplementary Assessment | Test Repeat Failed Elements | 20% |
Learning Outcomes
On successful completion of this module students should be able to:
Describe, explain and illustrate: the characteristics, attributes, uses, valuation, behaviour, trading and development of key investment instruments; the investment problem and investment decision making; and investment risk management.
List, describe, explain, illustrate, compare and contrast alternative investment instruments; perspectives on and measures of return/yield and risk; approaches to investment asset pricing; and types/forms of market efficiency.
Cite, explain, select and apply appropriate theory and models to solve related questions and numerical problems.
Derive, assess and criticize selected investment theory models.
Integrate different forms of analysis in order to generate a well-reasoned and holistic assessment of investment and risk management opportunities.
Aims
The module covers topics in investment analysis, portfolio selection and risk management which are essential subject matter within any high-quality undergraduate degree in accounting and/or finance.
Brief description
This module aims to provide students with a thorough treatment of: (i) the characteristics, attributes, uses, valuation, behaviour, trading and development of key investment instruments; (ii) the investment problem and investment decision making; and (iii) investment risk management. From a foundation in theory, we use discursive and numerical approaches to unlock this fascinating area. The themes of value, return and risk run throughout the module.
Content
2. Fixed income securities
3. Term structure of interest rates
4. Review of essential statistics
5. Equity securities and portfolio theory
6. The capital asset pricing model and the arbitrage pricing theory
7. Derivative instruments
8. Market efficiency
9. Process: financial innovation and trading
Module Skills
| Skills Type | Skills details |
|---|---|
| Application of Number | * Develop an easy familiarity with numerical data sources and numerical data * Apply numerical data to problem solving with care and accuracy * Assess the reasonableness of and interpret numerical solutions * Support assertions/arguments with appropriately developed and presented numerical data * Calculate and use descriptive statistics * Apply complex mathematical formulae |
| Communication | * Develop confidence in and clarity of oral communication via example class/tutorial participation * Develop clarity and focus of written communication via development of answers to self study questions * Develop and use appropriate subject-specific vocabulary in oral and written communication |
| Improving own Learning and Performance | * Identify and distil the key issues covered by lectures, tutorials and self study * Identify and use a range of learning resources * Investigate benefits of small group working on self study * Structure study to accommodate intensive learning |
| Information Technology | * Use a variety of electronic web- and library-based resources to review available information and retrieve pertinent information * Use spreadsheet software to complete elements of the self study (e.g., for ease of tabulated numerical calculations, production of summary statistics, production of graphs, etc.) |
| Personal Development and Career planning | * Develop skills in investment analysis, portfolio selection and risk management which are useful/essential in a number of different occupations; and in personal financial planning and management * Identify a variety of potential career opportunities within the financial and professional services sector |
| Problem solving | * Identify the precise problem to be solved * Assess which data are pertinent to the problem * Recognize that alternative solution methods might be available * Select and apply appropriate methods for solving the problem * Assess the reasonableness of problem solutions and interpret those solutions |
| Research skills | * Identify which information sources are available to: facilitate module study (understanding, wider reading); and provide data which allow application of module learning in a real world context * Properly reference/attribute information sources |
| Subject Specific Skills | * Develop competence in understanding and appropriately applying investment/financial mathematics * Develop competence in understanding and quantifying return/yield and risk; in analyzing the relationship between return and risk; and in managing risk |
| Team work | * Develop experience of team work and develop team working skills via small group working on self study |
Reading List
Supplementary TextBlake, 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
Notes
This module is at CQFW Level 6