Demonstrate an understanding of the investment environment and investment management.

Knowledge and Understanding, Learning


Demonstrate the ability to value real and financial assets and critically evaluate the economic models underpinning valuation/pricing.

Problem-solving, Analysis and Application


Demonstrate a critical understanding of the importance of risk management, evaluation, and equilibrium in financial markets.

Problem-solving, Analysis and Application


Critically consider the information inherent in pricing and critically evaluate the empirical evidence on efficiency in financial markets.

Problem-solving, Analysis and Application

(1) Group presentation 15 mins weighted at 20%. (LOs 1, 2, 3 ,4)

(2) Closed book examination of 2 hours at 80%. (LOs 1, 2, 3, 4)

The student is introduced to the general concept of investing—to forego spending cash today in the hopes of increasing wealth in the future. After studying this module, students should understand the overall investment process and understand some key elements involved in the investment process. Students should understand:
- Investment Environment: Asset classes, Security trading, Mutual funds
- Portfolio theory and Practice: Risk and Return, Risk Aversion and Capital Allocation, Optimal Risky Portfolios, Index Models
- Equilibrium in Capital Markets: CAPM, Arbitrage Pricing Theory, Efficient Market Hypothesis, Behavioral Finance, Technical Analysis
- Fixed-Income Securities: Bond Yields/Prices, Term Structure of Interest Rates, Bond Portfolios
- Security Analysis: Macroeconomic and Industry Analysis, Equity Valuation models, Financial Statement Analysis
- Derivatives: Options and Markets, Option Valuation, Futures Markets/Swaps, Risk Management
- Applied Portfolio Management: Performance Evaluation, International Diversification, Hedge Funds, Active Portfolio Mgmt., Investment Policy & CFA Institute

The learning strategy for the module requires students to commit 200 learning hours (including assessment) of which there will be 36 hours of tutor-led learning and 164 hours of independent and self-directed study. During the tutor-led learning hours, students will receive robust support through interactive tutorials where they can ask questions, clarify doubts, and receive personalized guidance on challenging concepts. These tutorials are designed to foster a deeper understanding of the material, with opportunities for collaborative learning and discussions that enhance comprehension and retention.

The course undertakes a rigorous study of concepts and evidence relevant to investment management. Topics include asset allocation, diversification, long-short strategies, factor models, long- horizon investing, portfolio optimization, hedge funds, mutual funds, behavioural finance, performance evaluation, trading, and simulation.

You will undertake ‘formative’ assessments during the module to help you monitor your learning and provide you and us with ongoing feedback on your progress, that helps you prepare for the ‘summative assessment(s) during or at the end of the module. The formative assessments may include quizzes, short essays, or problem-solving exercises, with feedback given to help students identify areas for improvement.

The use of AI tools such as ChatGPT can be beneficial in learning, however, students must adhere to the following guidelines: (i) all submitted work must be original and written by the student; (ii) if a student utilizes AI tools to generate ideas or receive guidance, this must be clearly cited in the submitted work, just as any other source would be; (iii) students should be mindful of the ethical implications of using AI in their studies, ensuring that their use of such tools does not constitute academic dishonesty.

Unit feedback:
During semester, students’ feedback on the module will be collated and distributed through University's online platform, ensuring consistency with other units and focusing on both improvement and future success. This process includes both individual feedback and cohort-wide summaries, aligning with the university's standardized approach to learning and assessment.

MAIN TEXT:
Bodie, Kane, Marcus, Jain, (2023) Investments, Asia Global Edition. 13th ed. New York, McGraw-Hill

Additional texts:
Fabozzi, Markowitz, Eds. (2011) The Theory and Practice of Investment Management 2nd. Ed. New Jersey, John Wiley and sons.

Efficiently Inefficient, by Lasse Heje Pedersen, Princeton University Press, with the downloadable exercises at http://docs.lhpedersen.com/EfficientlyInefficient_Exercises.pdf.
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