The University of Southampton
Courses

MANG6221 Stock Market Analysis

Module Overview

This course provides an introduction to the modern finance theory and its applications. It will start by giving a short preamble of the asset classes and financial markets, security analysis and equity evaluation. The course will then focus on portfolio theory, asset allocation and portfolio selection. The equilibrium in capital markets will be examined for CAPM and alternative pricing models such as the APT and multi-factor model. The course will also briefly explore the assumptions of investor rationality, investor irrationality and their impact on investment decision making. The last topic will be an overview of evaluation of a portfolio.

Aims and Objectives

Module Aims

This course provides an introduction to the modern finance theory and its applications.

Learning Outcomes

Knowledge and Understanding

Having successfully completed this module, you will be able to demonstrate knowledge and understanding of:

  • Discuss the valuation of equities and their organisation into portfolios.
  • Critically analyse the impact of current financial market developments on asset allocation issues.
  • Understand important investment data.
Transferable and Generic Skills

Having successfully completed this module you will be able to:

  • Through the examination, group discussions, and assignments students will demonstrate skills in written and oral communication regarding the analysis of issues relating to contemporary asset allocation.
Subject Specific Intellectual and Research Skills

Having successfully completed this module you will be able to:

  • Analyse financial market data and evaluate recent development and future prospects for different asset classes.
  • Articulate the main theories for stock market valuation.
  • Identify and apply the main tools of portfolio performance management.
  • Describe and critically evaluate alternative hedge fund investment strategies.

Syllabus

Material covered will include: the nature of institutional investors and historical investment data; the equity risk premium; equity style asset allocation strategies; home bias by investors; institutional performance measurement. - Topic 1: Introduction to Stock Markets - Topic 2: Risk and Return - Topic 3: Portfolio Analysis - Topic 4: Efficient markets Hypothesis - Topic 5: Capital Market Theory/Issues in Asset Pricing. - Topic 6: Applied Examples of all of the above.

Learning and Teaching

Teaching and learning methods

This module will involve 24 contact hours over a six-week period. Lectures account for 14 hours of contact time and are used to introduce individual topics. Teaching methods include • Lectures, • PowerPoint • Presentations, • Mini class exercises, • Role-playing games, • Discussion, • Case studies • Class discussion of relevant academic papers • Videos Learning activities include • Case study • Role-playing games • Problem solving activities • Class discussion • Independent study

TypeHours
Independent Study126
Teaching24
Total study time150

Resources & Reading list

Barberis, N. and R. Thaler (2003). A survey of behavioural finance in Constantinides. Handbook of Economics and Finance. ,0 , pp. 0.

Elton, E. J., Gruber, M. J., Brown, S. J., Goetzmann, W. J.. Modern Portfolio Theory and Investment Analysis. 

Bodie, Z., Kane, A., Marcus, A. J., 2011. Investments and Portfolio Management. 

Assessment

Summative

MethodPercentage contribution
Examination  (2 hours) 100%

Repeat

MethodPercentage contribution
Examination  (2 hours) 100%

Referral

MethodPercentage contribution
Examination  (2 hours) 100%
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