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Unit information: Investment Management in 2016/17

Please note: you are viewing unit and programme information for a past academic year. Please see the current academic year for up to date information.

Unit name Investment Management
Unit code ECONM2030
Credit points 15
Level of study M/7
Teaching block(s) Teaching Block 2 (weeks 13 - 24)
Unit director Dr. Friederich
Open unit status Not open
Pre-requisites

None

Co-requisites

None

School/department School of Accounting and Finance
Faculty Faculty of Social Sciences and Law

Description

The unit is assessed via two-hour examination in the Summer plus a single piece of assessed course work. The assessed course work will seek to test whether students have appreciated the quantitative, practical side of the unit by asking them to develop a portfolio performance study or a portfolio construction project using real financial data. The examination will evaluate whether the students have grasped the theory underlying the portfolio management process, both for bonds and equities and the limitations of the approaches they have learned. It will also contain some questions that require students to apply the techniques to summary financial data.

Intended learning outcomes

  • Understand the theory relevant to investment strategies and portfolio choices (market efficiency, basic asset pricing models, the Grossman/Stiglitz paradox…)
  • Understand models of active equity and bond portfolio management.
  • Understand various metrics for assessing portfolio manager performance.
  • Understand in detail the empirical evidence available on the performance of professional portfolio managers
  • Apply techniques of performance measurement or portfolio optimization to real financial data.

Teaching details

Lectures, exercise lectures with smaller groups for numerical exercises and tutorials for student presentations/discussion-based questions. Computer labs if the need arises (depending on the computer courses given concurrently and in the Research Methods week).

Assessment Details

Exam = 80%, CW = 20%

The unit is assessed via a two-hour examination in the Summer plus a single piece of assessed course work.

The assessed course work will seek to test whether students have appreciated the quantitative, practical side of the unit by asking them to develop a portfolio performance study or a portfolio construction project using real financial data.

The examination will evaluate whether the students have grasped the theory underlying the portfolio management process, both for bonds and equities and the limitations of the approaches they have learned.

Reading and References

  • Z. Bodie, A. Kane and A. Marcus (2009), Investments and portfolio management, current edition, McGraw-Hill.
  • Litterman, B., Modern Investment Management, McGraw-Hill
  • Grinold and Kahn, Active Portfolio Management, McGraw-Hill

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