Programme/Approved Electives for 2020/21
Available as a Free Standing Elective
In this module students will learn the techniques and theoretical underpinnings of financial investment management. You will learn how to measure and interpret the return and risk preferences of an investor. You will learn the practical techniques of asset allocation and see how this builds on the mean-variance framework studied in Finance 1. You will learn the differences between value and growth investing, and how to measure the performance of financial asset portfolios. You will learn how to manage fixed income portfolios both for longer term liability management objectives and shorter term speculative objectives.
The aim of this module is to provide students with an understanding of how financial investment portfolios are established and managed.
Intended Learning Outcomes
Understand how to profile an investment management client: 1,2Make asset allocation decisions using a range of techniques including indexing, diversification, mean-variance analysis, the Black-Litterman model and market timing: 1,2Appraise the performance of investment portfolios and individual securities: 1,2Understand the theoretical weaknesses and technical advantages and disadvantages of alternative performance measurement techniques: 2Make security selection decisions using a range of techniques including mean-variance analysis, and growth and value investing: 2Evaluate and manage fixed income portfolios using techniques of duration, convexity, immunization and active techniques: 2
Lectures: 18 hoursTutorials: 6 hoursTutorial preparation: 36 hoursAssignment preparation and completion: 12 hoursSelf study and final exam revision: 76 hoursFinal Exam: 2 hours
1: Assignment weighted 35%
Description of Module Assessment
AssignmentA written assignment involving solving numerical problems relating to asset allocation and interpreting the answers. All questions to be answered. The word count should not exceed 1,200 words.2: Exam weighted 65%
Take-away ExamAssessment 2 is a take-away exam which will be available on KLE for 24-hours to answer and submit your answer via Turnitin File. Although students have been given significant time to complete this exam script, we expect most students to spend no more than 3 hours to complete and submit their answers via Turnitin (with a maximum of 1,800 words). Answers should be as accurate and concise as possible.This Take-away Final exam includes: Four compulsory short answer questions. Two long answer questions to be answered from a set of four questions. All questions will involve both numerical problem solving and the analysis of solutions and theoretical models.