INVESTMENT MANAGEMENT THEORY

SHE Level 4
SCQF Credit Points 20.00
ECTS Credit Points 10.00
Module Code MHN311687
Module Leader Sanjukta Brahma
School Glasgow School for Business and Society
Subject Finance and Accounting
Trimester
  • B (January start)

Pre-Requisite Knowledge

Corporate Finance & Investment or equivalent

Summary of Content

This module develops the material covered in the Level 3 module Corporate Finance & Investment by examining Investment Management theory to an advanced level. It will make students familiar with investment methods used by fund managers and will discuss the application of investment management theory and methods of asset pricing.

Syllabus

1. Active/passive management & statement analysis. 2. CAPM / APT and other asset pricing methods. 3. Fixed income securities. 4. Bond theory. 5. Macroeconomic industry sectoral analysis. 6. Derivatives 7. Single index/multi operator models (CFDs, ETFs, etc.) 8. Hedge funds, financial engineering, Markowitz portfolio ombudsman. 9. Identify an investors risk tolerance, including objective and subjective factors. 10. Supplied portfolio management (IPO's etc.). 11. International diversification. 12. Portfolio management/statistical analysis/measuring portfolio performance.

Learning Outcomes

On successful completion of this module, the student should be able to:1. Comparative analysis of the different types of fund management highlighting advantages and disadvantages.2. Critically analyse the methods of asset pricing available.3. Discuss the merits of the various academic theories of asset pricing.4. Create and justify the selection of various investment portfolios.5. Discuss the regulatory framework in relation to fund/investment management.

Teaching / Learning Strategy

The learning outcomes are grounded in the delivery of a core set of lectures providing students with essential knowledge and discussion points. Thereafter, students are encouraged to develop their skills in data gathering and critical analysis as a means of reinforcing and supplementing the core material. These efforts are underpinned by tutorials, providing the opportunity to present and discuss data ideas and case study scenarios through Blackboard discussion groups, and various other media, thus also enhancing personal transferable skills. Student Performance Feedback Aims Students will be provided with feedback on all forms of assessed work within three weeks of submission. They will also receive feedback on all group or individual contributions to the module. The feedback that they receive is designed to: A: Facilitate the development of self-assessment B: Encourage dialogue C: Clarify good performance D: Provide opportunities to close the gap between current and desired performance E: Deliver high quality information about your learning F: Encourage positive motivational beliefs and self-esteem G: Provide information to teachers that can be used to help shape the teaching Strategies In order to achieve these aims, the following strategies will be adopted by this module: A: Facilitating the development of self-assessment Students will be provided with a template for the evaluation of their coursework. They will be encouraged to identify the strengths and weaknesses of their own work in relation to the criteria prior to submission. B: Encouraging dialogue Time will be set aside in seminars to discuss generic feedback. Students will also be encouraged to meet with module tutors to review their personal performance. C: Clarifying good performance Increasing discussion and reflection about criteria and standards in class. D: Providing opportunities to close the gap between current and desired performance Feedback will identify generic and individual action points for improving performance. E: Delivering high quality information about your learning Feedback will be provided as soon as possible after submission and within 3 working weeks at the latest F: Encouraging positive motivational beliefs and self-esteem All feedback will be constructive and clear. It will identify strengths in performance. G: Providing information to teachers that can be used to help shape the teaching Students will be asked to identify the areas that caused them most difficulties when submitting their work.

Indicative Reading

Essential Reading: Bodie, Kane, Marcus,(2009),Investments (8th Ed.) - Boston- McGraw Hill. Recommended Reading: Haugen et al. (2001), Modern Investment Theory with Options - 5th Ed. - New Jersey, Prentice Hall. Fabozzi. F.J. (1998),Investment Management - 2nd Ed. - New Jersey, Prentice Hall. Hirschey. M, (2002), Investments Theory and Practice of Investment Management - Fort Worth - Harcourt. Lofthouse, S. (2001), Investment Management - Chichester - Wiley Damodarn, A., (2006), Security Analysis for Investment and Cash Finance - New York - Wiley Damodarn, A. (2001), Investments and Valuations - New York - Wiley Burnstein (2001), Investment Management and Security Analysis - New York - Wiley Fabozzi et al. (2006), Advanced Bond Portfolio Management - New York - Wiley Websites: http://www.aaii.org http://www.bloomberg.com/ http://www.cob.ohio-state.edu/fin/overview.htm http://fisher.osu.edu/fin/journal/jofsites.htm#1nk http://www.investoraccess.com/ http://www.osfi_bsif.sc.ca http://www.sims.berkeley.edu/~hal/pages/finance.html http://www.ssrn.com/fen/index.html http://www.theeir.com/ http://wsrn.com/ http://www.vanguard.com/ Journals: European Financial Management. Financial Management Financial Markets, Institutions in Markets Journal of Alternative Investments Journal of Corporate Finance Journal of Finance Journal of Financial Economics Journal of Financial Intermediation Journal of Financial Markets Journal of Financial and Quantitive Analysis Journal of Financial Research Journal of Fixed Income Journal of International Money and Finance Journal of Investing Journal of Portfolio Management Journal of Risk Finance The Review of Financial Studies Securities and Investment Review

Transferrable Skills

This module will develop the data gathering, research, analysis and interpretation skills of the students in a manner that encourages independent initiative and critical thinking. In tutorials, students will develop communication skills through participation in discussions, debates and presentations.

Module Structure

Activity Total Hours
Independent Learning (FT) 147.00
Tutorials (FT) 11.00
Assessment (FT) 18.00
Lectures (FT) 24.00

Assessment Methods

Component Duration Weighting Threshold Description
Exam (Exams Office) 3.00 70.00 35% Final Examination
Coursework 0.00 30.00 35% Report 2,000 words