Investments

Module title	Investments
Module code	INT3606B
Academic year	2020/1
Credits	30
Module staff	Areeya Srisai (Lecturer)

Duration: Term	1	2	3
Duration: Weeks		10	5

Number students taking module (anticipated)	30

Description - summary of the module content

Module description

This module equips you with a fundamental knowledge of investment theory and portfolio management. In particular the module provides you with a rigorous understanding of the concepts and techniques used by finance specialists and enabling you to apply these techniques in practical application of investment analysis and the implications of market efficiency for the investment decisions.The module covers a range of topics in finance drawn from the financial market and its products, basic valuation for equity, fixed income and derivatives.

Students should have completed the Financial Management module (INT 3605) before taking this module.

Module aims - intentions of the module

The aim of this module is to equip students with a fundamental knowledge of investment theory and portfolio management. In particular the module provides students with a rigorous understanding of the concepts and techniques used by finance specialists, enabling students to apply these techniques in practical application of investment analysis, and the implication of market efficiency for the investment decisions. Through a combination of lectures, tutorial classes and computer training on Excel functions, students will be provided with a solid foundation in financial theory and practice, providing the necessary grounding for further modules in finance.

Intended Learning Outcomes (ILOs)

ILO: Module-specific skills

On successfully completing the module you will be able to...

1. Demonstrate a critical understanding of the working of the financial system to optimise resources over time in a situation of uncertainty
2. Demonstrate a secure understanding of asset valuation models and techniques of risk management and the ability to apply these to practical examples
3. Demonstrate a comprehensive and critical understanding of portfolio construction and management and the ability to apply their knowledge to practical examples
4. Demonstrate a sound understanding of financial derivatives, such as options and futures

ILO: Discipline-specific skills

On successfully completing the module you will be able to...

5. Apply their understanding of the theoretical techniques of finance and the implications of market efficiency to investment decisions
6. Evaluate the usefulness of publicly available company data towards producing a sensible recommendation and company valuation
7. Appraise the advice of professional analysts

ILO: Personal and key skills

On successfully completing the module you will be able to...

8. Communicate in English in speech and writing within the subject area
9. Work as part of a team
10. Present materials for group discussion, including numerical or other data in graphical form
11. Collect and analyse data and research for writing an assignment

Syllabus plan

Introduction to financial markets and institutions; buying and selling securities; market efficiency; principles of asset valuation; valuation of bonds and shares; security analysis; risk management; portfolio theory; capital asset pricing model and other pricing models; introduction to financial derivatives; introduction to basic statistics; financial calculation using excel program; matrix calculations: variance-covariance matrix; optimisation; portfolio management.

Learning and teaching

Learning activities and teaching methods (given in hours of study time)

Scheduled Learning and Teaching Activities	Guided independent study	Placement / study abroad
60	240	0

Details of learning activities and teaching methods

Category	Hours of study time	Description
Scheduled Learning and Teaching Activities (Synchronous)	10	Lecture video will be available online on major theories required to be applied to the case study
Scheduled Learning and Teaching Activities (synchronous)	20	Live Seminars/Tutorials
Scheduled Learning and Teaching Activities (synchronous)	20	Computer Training on Excel
Scheduled Learning and Teaching Activities (synchronous)	10	Assignment Tutorials
Guided Independent Study	40	Web-based activities located on McGraw Hill
Guided Independent Study		Connect - preparation for in-class test
Guided independent study	100	Researching on financial reports of listed companies and collecting financial data of selected company to analyse
Guided independent study	100	Carry out the company analysis and write final version of your assignments and preparing for presentation

Assessment

Formative assessment

Form of assessment	Size of the assessment (eg length / duration)	ILOs assessed	Feedback method
Weekly online exercise	8 X 60 minutes	1-5, 8	Correct answers provided on McGraw- Hill Connect platform

Summative assessment (% of credit)

Coursework	Written exams	Practical exams
90	10	0

Details of summative assessment

Form of assessment	% of credit	Size of the assessment (eg length / duration)	ILOs assessed	Feedback method
Group project	40	Max. 2,000 words	1-11	Written
Individual assignment	50	Max. 3,000 words	1-2, 5-11	Written
In-class test (online)	10	1 Hour	1, 2, 4, 5, 8	Written

Re-assessment

Details of re-assessment (where required by referral or deferral)

Original form of assessment	Form of re-assessment	ILOs re-assessed	Timescale for re-assessment
Individual Assignment	Written Assignment	1-2, 5-11	Within 4 weeks of the examination board

Re-assessment notes

Deferral– if you miss an assessment for reasons judged legitimate by the Mitigation Committee, the applicable assessment will normally be deferred. See ‘Details of reassessment’ for the form that assessment usually takes. When deferral occurs there is ordinarily no change to the overall weighting of that assessment.

Referral– if you have failed the module overall (i.e. a final overall module mark of less than 40%) you will be required to take a re-sit exam and re-submission. Only your performance in this exam will count towards your final module grade. A grade of 40% will be awarded if the examination is passed.

Resources

Indicative learning resources - Basic reading

Core text:

Jordan B.D., Miller T. W. and Dolvin S.D. (2015). Fundamentals of Investments (8^th Ed.). McGraw Hill: IBSB: 9780077139582.

Additional reading:

Sharp, W. F., Alexander G. J. & Bailey J. V. (2001). Fundamentals of Investments (3^rd Ed.). Harlow: Prentice Hall. ISBN: 0132926172.

Bennings, S. (2000). Financial Modelling (2^nd Ed.). Boston Mass: MIT. ISBN: 0262024829.

Indicative learning resources - Web based and electronic resources

Other useful resources:

ELE – http://vle.exeter.ac.uk/course/view.php?id=2282

Web based and electronic resources:

McGraw- Hill Connect - http://connect.mcgraw-hill.com/class/a_srisai_copy_of_copy_of_demo_section_1

Bank of England - http://www.bankofengland.co.uk/Pages/home.aspx

London Stock Exchange - http://www.londonstockexchange.com/home/homepage.htm

Module has an active ELE page

Indicative learning resources - Other resources

Other resources:

Yahoo Finance - http://uk.finance.yahoo.com/

UK Debt Management Office - http://www.dmo.gov.uk/index.aspx?page=about/about_gilts

Key words search

Investments, portfolio management

Credit value	30
Module ECTS	15
Module pre-requisites	INT3605 Financial Management
Module co-requisites	None
NQF level (module)	6
Available as distance learning?	Yes
Origin date	2004
Last revision date	30/07/2020