Fundamentals of Investments

Module title	Fundamentals of Investments
Module code	INT3624
Academic year	2021/2
Credits	15
Module staff	Areeya Srisai (Convenor)

Duration: Term	1	2	3
Duration: Weeks		10	2

Number students taking module (anticipated)	20

Description - summary of the module content

Module description

This module covers the field of investment. It describes the main participants, their objectives and constraints, and the major investment markets. The module covers investment strategies for bonds, equities, and structured products including the use of derivatives in managing risk. Portfolio optimisation and asset allocation are covered, as well as how to measure portfolio performance.

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. 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 secure understanding of financial instruments, such as equity, bonds, options and futures

ILO: Discipline-specific skills

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

5. Demonstrate an understanding of combinations of securities which deliver a particular risk/return combination

ILO: Personal and key skills

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

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

Syllabus plan

Introduction to financial markets and institutions
Investment objectives and constraints
Buying and Selling Securities
Introduction to asset valuation models and techniques
Portfolio theory and risk management
Capital asset pricing model and other pricing models.
Evaluation of portfolios (mutual funds, pension funds and other institutionally managed funds)

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	90	0

Details of learning activities and teaching methods

Category	Hours of study time	Description
Scheduled Learning & Teaching Activities	20	Lectures
Scheduled Learning & Teaching Activities	40	Seminars/Tutorials
Self-study	20	Web-based activities (CMAs)
Guided Independent Study	70	Researching on financial reports of listed companies and collecting financial data and run excel-based financial modelling

Assessment

Formative assessment

Form of assessment	Size of the assessment (eg length / duration)	ILOs assessed	Feedback method
Weekly online exercise (CMAs)	10 x 60 minutes	1-5	Correct answers provided on McGraw-Hill Connect platform

Summative assessment (% of credit)

Coursework	Written exams	Practical exams
70	30	0

Details of summative assessment

Form of assessment	% of credit	Size of the assessment (eg length / duration)	ILOs assessed	Feedback method
3 x online tests (CMAs)	30	3 x 1 hour	1-5	Written feedback
Group Presentation	20	10-15 minutes	1-9	Written and Verbal Feedback
Group Project (Portfolio Management)	50	2000 words including tables	1-9	Written feedback

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
Group Assignment (Portfolio Management)	Written Assignment	1-9	Within 4 weeks of 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 re-submission an assignment (see ‘Details of Re-assessment). A maximum grade of 40% will be awarded for this module.

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

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

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, Risk management, Diversification

Credit value	15
Module ECTS	7.5
Module pre-requisites	None
Module co-requisites	None
NQF level (module)	6
Available as distance learning?	Yes
Origin date	23/03/2021
Last revision date	12/08/2021