IB357-15 Investment Management
Introductory description
This is an elective module available for WBS and non-WBS students.
This module provides an advanced theoretical and practical treatment of modern portfolio theory and portfolio management, mainly from an equity market perspective.
Issues to be considered include security selection, portfolio construction, asset pricing models, market efficiency, performance measurement and limits to arbitrage.
Module aims
This module provides an advanced theoretical and practical treatment of modern portfolio theory and portfolio management, mainly from an equity market perspective.
Issues to be considered include security selection, portfolio construction, asset pricing models, market efficiency, performance measurement and limits to arbitrage.
Outline syllabus
This is an indicative module outline only to give an indication of the sort of topics that may be covered. Actual sessions held may differ.
Portfolio theory
Asset pricing models
Market Efficiency
Behavioural Finance
Limits to arbitrage
Bonds
Derivatives
Learning outcomes
By the end of the module, students should be able to:
- Demonstrate advanced knowledge of portfolio and asset pricing theory.
- Understand how investment management relates to market efficiency.
- Understand how theories in behavioral finance can help managers analyze market inefficiency.
- Understand how limits to arbitrage impact investment management.
- Be able analyze bonds, and how to hedge interest rate risk.
- Be familiarized with trading strategies with options.
- Financial reasoning and paying attention to risk.
Indicative reading list
The main textbook used in the module is Bodie, Zvi, Alex Kane, and Alan J. Marcus. Investments, 11th edition, McGraw-Hill 2018.
Articles
Porta, Rafael La, et al. "Good news for value stocks: Further evidence on market efficiency." The Journal of Finance 52.2 (1997): 859-874.
Lakonishok, Josef, Andrei Shleifer, and Robert W. Vishny. "Contrarian investment, extrapolation, and risk." The Journal of Finance 49.5 (1994): 1541-1578.
K. BRUNNERMEIER, and Stefan Nagel. "Hedge funds and the technology bubble." Journal of Finance 59.5 (2004): 2013-2040.
Shleifer, Andrei, and Robert W. Vishny. "The limits of arbitrage." The Journal of Finance 52.1 (1997): 35-55.
Subject specific skills
Use portfolio and asset pricing theory to solve mathematical problems related to investment management.
Learn to use data to solve problems in investment management.
Transferable skills
Problem solving using mathematics, interpreting numbers from published research and extracting value from publicly available information.
Study time
| Type | Required |
|---|---|
| Lectures | 10 sessions of 2 hours (13%) |
| Seminars | 9 sessions of 1 hour (6%) |
| Private study | 48 hours (32%) |
| Assessment | 73 hours (49%) |
| Total | 150 hours |
Private study description
No private study requirements defined for this module.
Costs
No further costs have been identified for this module.
You do not need to pass all assessment components to pass the module.
Assessment group D6
| Weighting | Study time | Eligible for self-certification | |
|---|---|---|---|
| Participation (15 CATS) | 10% | 8 hours | No |
|
Participation in activities on a weekly basis via my.wbs |
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| Online Examination | 90% | 65 hours | No |
|
Exam ~Platforms - AEP
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Assessment group R1
| Weighting | Study time | Eligible for self-certification | |
|---|---|---|---|
| Online Examination - Resit | 100% | No | |
|
Exam ~Platforms - AEP
|
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Feedback on assessment
Feedback via My.WBS.
Pre-requisites
To take this module, you must have passed:
Courses
This module is Optional for:
-
UIBA-MN34 Law and Business Four Year (Qualifying Degree)
- Year 3 of MN34 Law and Business Studies Four Year (Qualifying Degree)
- Year 4 of MN34 Law and Business Studies Four Year (Qualifying Degree)
-
UECA-3 Undergraduate Economics 3 Year Variants
- Year 3 of L100 Economics
- Year 3 of L116 Economics and Industrial Organization
-
UECA-4 Undergraduate Economics 4 Year Variants
- Year 4 of L103 Economics with Study Abroad
- Year 4 of LM1H Economics, Politics & International Studies with Study Abroad
- Year 4 of L114 Industrial Economics with Study in Europe
- Year 3 of UECA-LM1D Undergraduate Economics, Politics and International Studies
- Year 3 of UIBA-MN31 Undergraduate Law and Business Studies
-
UIBA-MN32 Undergraduate Law and Business Studies
- Year 3 of MN32 Law and Business Studies (Four-Year)
- Year 4 of MN32 Law and Business Studies (Four-Year)
- Year 5 of UIBA-MN37 Undergraduate Law and Business Studies (Qualifying Degree) with Intercalated Year
-
UIBA-MN35 Undergraduate Law and Business Studies with Intercalated Year (3+1)
- Year 3 of MN35 Law and Business Studies with Intercalated Year (3+1)
- Year 4 of MN35 Law and Business Studies with Intercalated Year (3+1)
- Year 5 of UIBA-MN36 Undergraduate Law and Business Studies with Intercalated Year (4+1)
-
USTA-G300 Undergraduate Master of Mathematics,Operational Research,Statistics and Economics
- Year 3 of G300 Mathematics, Operational Research, Statistics and Economics
- Year 4 of G300 Mathematics, Operational Research, Statistics and Economics
- Year 3 of UMAA-GL11 Undergraduate Mathematics and Economics
- Year 4 of UECA-GL12 Undergraduate Mathematics and Economics (with Intercalated Year)
This module is Unusual option for:
- Year 3 of UPHA-V7ML Undergraduate Philosophy, Politics and Economics
This module is Option list A for:
- Year 4 of USTA-G300 Undergraduate Master of Mathematics,Operational Research,Statistics and Economics
- Year 5 of USTA-G301 Undergraduate Master of Mathematics,Operational Research,Statistics and Economics (with Intercalated
This module is Option list G for:
- Year 2 of UPHA-V7ML Undergraduate Philosophy, Politics and Economics