Course Details
Course Information Package
Course Unit Title | INVESTMENT ANALYSIS, PORTFOLIO THEORY & MANAGEMENT | ||||||
Course Unit Code | AFIN306 | ||||||
Course Unit Details | |||||||
Number of ECTS credits allocated | 5 | ||||||
Learning Outcomes of the course unit | By the end of the course, the students should be able to:
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Mode of Delivery | Face-to-face | ||||||
Prerequisites | AFIN101,AFIN102 | Co-requisites | NONE | ||||
Recommended optional program components | NONE | ||||||
Course Contents | An overview of financial markets: The investment environment and distinction between real and financial assets, the players of the financial system (households, business and government sector) and their role, the money market, the bond and derivative market structure and their role, the security trading process, mutual funds and other investment companies Portfolio theory: Means, variances and correlations of assets, feasible investment set, minimum variance set and efficient set, investor preferences in mean-variance space and the concept of diversification, portfolio optimization and optimal capital allocation Stock Valuation and market efficiency: dividend discount model, Discounted free cash flow approach and CAPM, implications of market efficiency under its different forms Derivatives and their use: the characteristics of derivative securities, different types of derivative securities and their use,risk management use of derivative securities Fixed income securities: List of bond characteristics, different types of government and corporate bonds, option provisions embedded in bond contracts, present value formulas for bond pricing, the term-structure of interest rates and interest uncertainty, managing bond portfolios based on duration and immunization | ||||||
Recommended and/or required reading: | |||||||
Textbooks |
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References |
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Planned learning activities and teaching methods | The taught part course is delivered to the students by means of lecturers, conducted with the help of computer presentations and the use of the board. Lecture notes and other course material like spreadsheet examples are available to students through the web. | ||||||
Assessment methods and criteria |
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Language of instruction | English | ||||||
Work placement(s) | NO |