Portfolio Theory and Financial Markets

Module overview

The module aims to develop understanding of the role of financial markets, security analysis and valuation, efficient market theory, asset pricing theory and portfolio management. This is an excellent module to understand the basics of finance, how financial markets work, pricing important financial assets and understanding the models in which finance is based upon.

Linked modules

Prerequisites: MANG1007 or MANG1047 or MANG1019 or ECON1001 or ECON1003 or ECON1009 or ECON1008 or ECON1020 or ECON1022

Aims and Objectives

Learning Outcomes

Transferable and Generic Skills

Having successfully completed this module you will be able to:

demonstrate competence generally in numerical analysis and problem solving; and in written communication.

Subject Specific Intellectual and Research Skills

Having successfully completed this module you will be able to:

demonstrate competence in the analysis of, and quantitative calculations relating to, investments and portfolios, with particular emphasis on mean-variance analysis.
demonstrate an understanding of the theoretical concepts of efficient markets and asset pricing models;

Knowledge and Understanding

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

key concepts in Finance, including the operation and structure of financial markets and trading systems, the analysis and valuation of different types of securities, and the optimal management of portfolios.

Learning and Teaching

Teaching and learning methods

• Weekly lectures will provide an overview of the main issues arising in the module. • Weekly tutorials will supplement the lectures and support student learning by providing opportunities for students to attempt and gain feedback on numerical and problem-solving exercises. Students will also have the opportunity for both directed and non-directed independent reading.

Study time
Type	Hours
Follow-up work	24
Revision	50
Wider reading or practice	30
Seminar	10
Lecture	24
Preparation for scheduled sessions	12
Total study time	150

Resources & Reading list

Textbooks

Bodie, Z., Kane, A., Marcus, A. J. (2009). Investments. McGraw-Hill.

Blake, D. (2000). Financial Market Analysis. Wiley.

Brealey, R. A., Myers, S. C., Allen, F. (2008). Principles of Corporate Finance. McGraw-Hill.

Cuthbertson, K., and Nitzsche, D. (2001). Investments – Spot and Derivatives Markets. Wiley.

Cuthbertson, K., Nitzche, D (2008). Investments. Wiley.

Assessment

Formative

This is how we’ll give you feedback as you are learning. It is not a formal test or exam.

In-Class Questions and Answers

Assessment Type: Formative
Feedback: You will be given feedback from your answers to the in-class questions. this will be verbal, but written feedback can also be sought from the class leader.
Final Assessment: No
Group Work: No

Summative

This is how we’ll formally assess what you have learned in this module.

Breakdown
Method	Percentage contribution
Multiple choice Test	30%
Examination	70%

Referral

This is how we’ll assess you if you don’t meet the criteria to pass this module.

Breakdown
Method	Percentage contribution
Examination	100%

Repeat

An internal repeat is where you take all of your modules again, including any you passed. An external repeat is where you only re-take the modules you failed.

Breakdown
Method	Percentage contribution
Examination	100%

Repeat Information

Repeat type: Internal & External