Portfolio Management and Asset Allocation
| Module title | Portfolio Management and Asset Allocation |
|---|---|
| Module code | BEFM015 |
| Academic year | 2023/4 |
| Credits | 15 |
| Module staff | Dr Linquan Chen (Convenor) |
| Duration: Term | 1 | 2 | 3 |
|---|---|---|---|
| Duration: Weeks | 11 |
| Number students taking module (anticipated) | 88 |
|---|
Module description
This module takes the perspective of portfolio management and aims to develop skills based on formal modelling of asset price procedures and empirical research findings particularly in an international setting.
Additional Information:
Pre-requisite
Students must have taken one of the following modules:
BEAM047 Fundamentals of Financial Management
BEAM072 Principles of Finance
Sustainability
All of the resources for this module are available on the ELE (Exeter Learning Environment).
Employability
In this module, students learn how to work with portfolios. The module covers 70% CFA CBOK syllabus on the topic of the Portfolio Management and prepares students well for the CFA Level 2 exam on this topic.
Module aims - intentions of the module
This module studies portfolio management, developing student skills in the formal modelling of asset price procedures and empirical research findings, particularly in an international setting. The module expands economic analysis to take in issues arising in foreign exchange, international finance and financial economics
Intended Learning Outcomes (ILOs)
ILO: Module-specific skills
On successfully completing the module you will be able to...
- 1. critically resolve general problems in selecting investments in a global market;
- 2. critically formulate asset allocation models and decisions, using different asset pricing models in portfolio formations;
- 3. demonstrate an understanding of the theories of international finance and monetary issues and apply them to real world situations; be able to resolve some practical problems arising in complex real environments
ILO: Discipline-specific skills
On successfully completing the module you will be able to...
- 4. develop rigorous theoretical arguments based on mathematical and analytical reasoning, interpret financial data and rigorously analyse problems in the light of established theories;
- 5. access and critically appraise a wide body of empirical research literature;
- 6. use relevant databases, existing research literature and techniques to conduct a detailed investigation of problems arising in financial markets and models.
ILO: Personal and key skills
On successfully completing the module you will be able to...
- 7. plan and manage your own study, individually, making appropriate use of learning resources, including sophisticated computer datasets
- 8. critically analyse problems arising in both academic and practical context;
- 9. effectively present results and work.
Syllabus plan
- Portfolio risk & return
- CAPM and performance evaluation
- Factor model, APT & factor investing
- Portfolio risk management
- Active portfolio management
- International portfolio management
- Applied portfolio management
- Electronic market, trade execution and technology for portfolio management
- Behavioural finance for portfolio management
- Selected advanced topics in portfolio management
Learning activities and teaching methods (given in hours of study time)
| Scheduled Learning and Teaching Activities | Guided independent study | Placement / study abroad |
|---|---|---|
| 30 | 120 | 0 |
Details of learning activities and teaching methods
| Category | Hours of study time | Description |
|---|---|---|
| Scheduled Learning and Teaching Activity | 20 | 10 x 2-hour Lectures |
| Scheduled Learning and Teaching Activity | 10 | 10 x 1-hour Tutorials |
| Guided Independent Study | 120 | Reading, research and reflection; Preparation for coursework, exams and tutorials. |
Formative assessment
| Form of assessment | Size of the assessment (eg length / duration) | ILOs assessed | Feedback method |
|---|---|---|---|
| Tutorial questions (Assigned in lectures and discussed in tutorials) | Up to 10 questions | 1-9 | Written/Verbal feedback |
Summative assessment (% of credit)
| Coursework | Written exams | Practical exams |
|---|---|---|
| 0 | 100 | 0 |
Details of summative assessment
| Form of assessment | % of credit | Size of the assessment (eg length / duration) | ILOs assessed | Feedback method |
|---|---|---|---|---|
| Mid-term exam (MCQs) | 10 | 40 mins | 1-8 | Written/Verbal feedback |
| Exam (written) | 90 | 2 hours | 1-9 | Written feedback |
| 0 | ||||
| 0 | ||||
| 0 | ||||
| 0 |
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 |
|---|---|---|---|
| Mid-term exam (MCQs) | Exam (MCQs) (10%) (40 mins) | 1-8 | Referral/Deferral Period |
| Exam (written) | Final exam (90%) (2 hours) | 1-9 | Referral/Deferral Period |
Indicative learning resources - Basic reading
Basic reading:
- Reilly, F.K., and Brown, K.C. (2015) Analysis of Investments and Management of Portfolios, 1st ed., Cengage Learning.[CA1] [TA2]
- Solnik, B. and McLeavey, D. (2004) International Investments, 5th ed., AIMR, UK: Addison Wesley
- CFA ® Level II Curriculum set
Indicative learning resources - Web based and electronic resources
Web-based and electronic resources:
| Credit value | 15 |
|---|---|
| Module ECTS | 7.5 |
| Module pre-requisites | Students must have taken one of the following modules: BEAM047 Fundamentals of Financial Management BEAM072 Principles of Finance |
| Module co-requisites | None |
| NQF level (module) | 7 |
| Available as distance learning? | Yes |
| Origin date | 16/07/2014 |
| Last revision date | 25/01/2022 |
