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.
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.
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.

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
Teaching24
Independent Study126
Total study time150

Resources & Reading list

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

Elton, E. J., Gruber, M. J., Brown, S. J., Goetzmann, W. J. (2011 - Chapter 4-8, 16-17). Modern Portfolio Theory and Investment Analysis. 

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

Assessment

Summative

MethodPercentage contribution
Examination  (2 hours) 100%

Repeat

MethodPercentage contribution
Examination  (2 hours) 100%

Referral

MethodPercentage contribution
Examination  (2 hours) 100%

Repeat Information

Repeat type: Internal & External

Costs

Costs associated with this module

Students are responsible for meeting the cost of essential textbooks, and of producing such essays, assignments, laboratory reports and dissertations as are required to fulfil the academic requirements for each programme of study.

In addition to this, students registered for this module typically also have to pay for:

Textbooks

Recommended texts for this module may be available in limited supply in the University Library and students may wish to purchase the core/recommended text as appropriate.

Please also ensure you read the section on additional costs in the University’s Fees, Charges and Expenses Regulations in the University Calendar available at www.calendar.soton.ac.uk.

Share this module Facebook Google+ Twitter Weibo

We use cookies to ensure that we give you the best experience on our website. If you continue without changing your settings, we will assume that you are happy to receive cookies on the University of Southampton website.

×