Module overview
This module provides an introduction to the modern finance theory and its applications to equity investing. It will start by giving a short preamble of the asset classes and stock markets, security analysis, and equity evaluation models. The course will then focus on stock portfolio optimisation, stock portfolio management including passive strategies, active strategies, and managing a portfolio of managers, and performance evaluation of stock portfolios. The module will also briefly consider the equilibrium asset pricing models such as the CAPM, APT and multi-factor models. The module will cover the stock market efficiency and briefly consider the assumptions of investor rationality and some relevant aspects of behavioural finance. Finally, the module will consider some advanced topics in stock market analysis such as the use of machine learning and big data analytics in equity investing.