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The University of Southampton
Courses

MANG6221 Stock Market Analysis

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.

Aims and Objectives

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;
  • how to 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 equity investment strategies.
Transferable and Generic Skills

Having successfully completed this module you will be able to:

  • demonstrate skills in written and oral communication regarding the analysis of issues relating to contemporary asset allocation, through the examination, group discussions, and assignments.

Syllabus

The material introduced in this module will cover the following topics: • Topic 1: Introduction to Stock Markets • Topic 2: Stock Valuation Theories • Topic 3: Stock Portfolio Optimisation • Topic 4: Stock Portfolio Management • Topic 5: Performance Evaluation of Stock Portfolios • Topic 6: Stock Market Efficiency and Some Other Advanced Topics

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

Maginn, Tuttle, McLeavey, and Pinto (2007). Managing Investment Portfolios: A Dynamic Process. 

Bodie, Z., Kane, A., Marcus, A. J. (2018). Investments. 

Fama, E.F. and French, K.R. (1996). Multifactor explanations of asset pricing anomalies.. The journal of finance. ,51(1), pp.55-84. .

Rasekhschaffe & Jones  (2019). Machine Learning for Stock Selection. Financial Analysts Journal,. ,75:3, 70-88, .

Fama, E.F. (1995). Random walks in stock market prices.. Financial analysts journal,. ,51(1), pp.75-80. .

Cao (2019). AI Pioneers in Investment Management, CFA Institute.. CFA Institute Publications. .

Assessment

Summative

MethodPercentage contribution
Individual Coursework 100%

Repeat

MethodPercentage contribution
Individual Coursework 100%

Referral

MethodPercentage contribution
Individual Coursework 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.

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