Content, progress and pedagogy of the module

The aim of this module is to familiarise course participants with the necessary knowledge and skills to construct, manage and evaluate the performance of portfolios of assets for individual and institutional investors.

The module covers investment strategies for bonds, equities, and structured products including the use of derivatives in managing risk. During the module the student will also learn about portfolio optimisation and asset allocation are covered, as well as how to measure portfolio performance.

Learning objectives

Knowledge

The objective is that the student after the module possesses the necessary knowledge on:

• demonstrating knowledge of the use of portfolio theory and asset pricing when constructing and evaluating equity and fixed income portfolios.
• understanding the fundamental theories and concepts of investment, with a focus on modern portfolio theory which provides a framework for analysing the risk-return relationship and the effects of diversification on portfolio risk.
• understanding the importance of hedging, long-short investment, and their applications.

Skills

The objective is that the student after the module possesses the necessary skills in:

• demonstrating familiarity with, and a critical awareness of, techniques for the analysis and management of fixed income and equity portfolios.
• measuring and interpreting the performance of portfolios (Benchmarking. Attribution Analysis. Risk-Adjusted returns. Performance Persistence).
• implementing fixed income strategies (speculating and hedging).

Competences

The objective is that the student after the module possesses the necessary competences in:

• applying theories to the solution of portfolio management problems.
• analysing and applying critically the investment strategies adopted by institutional investors.
• valuating the case for, and the implications of, strategies involving alternative investments and non-traditional investment funds, in the context of real-world evidence.

Type of instruction

For information see §17.

Exam

Exams