Fundamentals of Investments
| Module title | Fundamentals of Investments |
|---|---|
| Module code | INT3624 |
| Academic year | 2023/4 |
| Credits | 15 |
| Module staff |
| Duration: Term | 1 | 2 | 3 |
|---|---|---|---|
| Duration: Weeks | 10 | 2 |
| Number students taking module (anticipated) | 20 |
|---|
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 and equities, and evaluating the risk and return of different investment opportunities. 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, seminars and using basic modelling techniques, students will be provided with a foundation in financial theory and practice, providing useful skills and knowledge 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. Collaborate effectively in a group to research, analyse and summarise complex information to inform a written report.
- 7. Research, analyse and present information verbally to a client effectively supported by numerical or other data
- 8. Collect and analyse data and research to inform written assessment
Syllabus plan
Introduction to financial markets and institutions
Investment objectives and constraints
Financial instruments; bonds and equity
Buying and Selling Securities
Introduction to asset valuation models and techniques
Portfolio theory and risk management
Capital Asset Pricing Model (CAPM) and other pricing models.
Portfolio construction
Market efficiency and the psychology of investing
Learning activities and teaching methods (given in hours of study time)
| Scheduled Learning and Teaching Activities | Guided independent study | Placement / study abroad |
|---|---|---|
| 60 | 90 |
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 |
Formative assessment
| Form of assessment | Size of the assessment (eg length / duration) | ILOs assessed | Feedback method |
|---|---|---|---|
| Weekly online exercise | 10 X 60 minutes | 1-5 | Model answers |
| Small group presentation evaluating client requirements | 10 minute small group presentation | 2,3,6,7,8 | Verbal and peer feedback |
| Individual research and analysis of an individual company and financial analysis | Presentation of findings to peers | 2,7,8 | Verbal and peer feedback |
| Practice viva | Peer question and answer session | 4&7 | Written and verbal feedback |
| Small group research and analysis of a limited investment portfolio | Presentation of findings to peers and written summary of findings | 2,3,6,7,8 | Written and verbal feedback |
Summative assessment (% of credit)
| Coursework | Written exams | Practical exams |
|---|---|---|
| 70 | 30 |
Details of summative assessment
| Form of assessment | % of credit | Size of the assessment (eg length / duration) | ILOs assessed | Feedback method |
|---|---|---|---|---|
| 3 X on-line tests (Computer Marked Assessment) | 30 | 3 X 1 hour | 1 - 5 | Written |
| Individual Viva | 20 | 10 minutes | 4 & 7 | Verbal and Written |
| Group project (Portfolio Management) | 50 | 2,000 words including tables | 1,2,3,5.6.8 | Written |
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 viva (Portfolio Management) | 15 minute viva supported by key financial data | 1 - 8 | 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 carry out an individual viva (see ‘Details of Re-assessment). A maximum grade of 40% will be awarded for this module.
Indicative learning resources - Basic reading
Core text:
Jordan B.D., Miller T. W. and Dolvin S.D. (2021). Fundamentals of Investments. Valuation and Management (9th Ed.). McGraw Hill:
Additional reading:
Sharp, W. F., Alexander G. J. & Bailey J. V. (2001). Fundamentals of Investments (3rd Ed.). Harlow: Prentice Hall.
Benninga, S. (2014). Financial Modelling (4thEd.).Cambridge, Mass: MIT.
Other useful resources:
ELE – Course: (INT3624) Fundamentals of Investments (exeter.ac.uk)
Indicative learning resources - Web based and electronic 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
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
| 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 | 13/07/2023 |
