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Module Catalogue

IB357-15 Investment Management

Department
Warwick Business School
Level
Undergraduate Level 3
Module leader
Constantinos Antoniou
Credit value
15
Module duration
10 weeks
Assessment
Multiple
Study location
University of Warwick main campus, Coventry

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Introductory description

This is an elective module available for WBS and non-WBS students. To find detailed availability and to apply for this module, log in to my.wbs.ac.uk using your normal IT login details and apply via the my.wbs module application system. Once you’ve secured a place on my.wbs you should apply via your home department’s usual process, which usually takes place via eVision. Note that you do not require the module leader’s permission to study a WBS module, so please do not contact them to request it.

Students who successfully complete this module will have a deep understanding of the theory and practice of optimally combining securities into portfolios, institutional understanding of security markets, and some of the issues that a fund manager faces in putting theory into practice. They will be familiar with the theoretical and applied literature on modern portfolio management and investment analysis.

Module web page

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 1 hour (7%)
Seminars 9 sessions of 1 hour (6%)
Online learning (independent) 10 sessions of 1 hour (7%)
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 D8
Weighting Study time Eligible for self-certification
Participation 10% 8 hours No

Participation in activities on a weekly basis via my.wbs
In-person Examination 90% 65 hours No

Exam

  • Answerbook Green (8 page)
  • Students may use a calculator
  • Graph paper
Assessment group R3
Weighting Study time Eligible for self-certification
In-person Examination 100% No

Exam

  • Answerbook Green (8 page)
  • Students may use a calculator
Feedback on assessment

Feedback via My.WBS.

Past exam papers for IB357

Pre-requisites

To take this module, you must have passed:

Courses

This module is Optional for:

  • UIBA-N20B BSc in Management
    • Year 3 of N20B Management
    • Year 3 of N20B Management
    • Year 3 of N23K Management with Accounting
    • Year 3 of N234 Management with Digital Business
    • Year 3 of N235 Management with Entrepreneurship
    • Year 3 of N232 Management with Finance
    • Year 3 of N252 Management with Marketing
    • Year 3 of N23L Management with Strategy and Organisation
  • Year 3 of UIBA-N400 Undergraduate Accounting and Finance
  • UIBA-N404 Undergraduate Accounting and Finance (with Foundation Year and Placement/Undergraduate Partnership Programme)
    • Year 5 of N4N7 Accounting and Finance (Foundation Year and Intercalated)
    • Year 5 of N404 Accounting and Finance (Foundation Year and Placement)
    • Year 5 of N405 Accounting and Finance (Foundation Year and UPP)
    • Year 5 of N403 Accounting and Finance (with Foundation Year)
  • Year 4 of UIBA-N403 Undergraduate Accounting and Finance (with Foundation Year)
  • UIBA-N401 Undergraduate Accounting and Finance (with Placement Year/Undergraduate Partnership Programme)
    • Year 4 of N401 Accounting and Finance (Placement)
    • Year 4 of N402 Accounting and Finance (Undergraduate Partnership Programme)
  • Year 3 of UCSA-I1N1 Undergraduate Computer Science with Business Studies
  • Year 4 of UCSA-I1NA Undergraduate Computer Science with Business Studies (with Intercalated Year)
  • Year 1 of UIOA-EEU Undergraduate EU Exchange
  • Year 3 of UECA-L1N2 Undergraduate Economics and Management
  • Year 4 of UECA-L1N3 Undergraduate Economics and Management (with Intercalated Year)
  • Year 2 of UGEA-RN21 Undergraduate German and Business Studies
  • Year 3 of UIPA-L8N1 Undergraduate Global Sustainable Development and Business
  • Year 4 of UIPA-L8N2 Undergraduate Global Sustainable Development and Business Studies (with Intercalated Year)
  • UIBA-N20F Undergraduate International Management
    • Year 4 of N20F International Management
    • Year 4 of N20F International Management
    • Year 4 of N20S International Management (with Accounting)
    • Year 4 of N20T International Management (with Chinese)
    • Year 4 of N20P International Management (with Entrepreneurship)
    • Year 4 of N20M International Management (with Finance)
    • Year 4 of N20U International Management (with French)
    • Year 4 of N20L International Management (with Marketing)
    • Year 4 of N20V International Management (with Spanish)
    • Year 4 of N20W International Management (with Strategy and Organisation)
    • Year 4 of N20N International Management with Digital Business
    • Year 4 of N20E Management (with Foundation Year)
    • Year 4 of N234 Management with Digital Business
  • UIBA-N220 Undergraduate International Management (with Foundation Year)
    • Year 5 of N220 International Management (with Foundation Year)
    • Year 5 of N221 International Management with Accounting (with Foundation Year)
    • Year 5 of N226 International Management with Chinese (with Foundation Year)
    • Year 5 of N223 International Management with Digital Business (with Foundation Year)
    • Year 5 of N224 International Management with Entrepreneurship (with Foundation Year)
    • Year 5 of N222 International Management with Finance (with Foundation Year)
    • Year 5 of N227 International Management with French (with Foundation Year)
    • Year 5 of N225 International Management with Marketing (with Foundation Year)
    • Year 5 of N228 International Management with Spanish (with Foundation Year)
    • Year 5 of N229 International Management with Strategy and Organisation (with Foundation Year)
  • UIBA-N20J Undergraduate Management (with Foundation Year and Placement Year/Undergraduate Partnership Programme)
    • Year 5 of N20J Management (Foundation Year and Placement)
    • Year 5 of N20K Management (Foundation Year and UPP)
    • Year 5 of N23H Management with Digital Business (with Foundation Year and Placement Year)
    • Year 5 of N23J Management with Entrepreneurship (with Foundation Year and Placement Year)
    • Year 5 of N23G Management with Finance (with Foundation Year and Placement Year)
    • Year 5 of N255 Management with Marketing (with Foundation Year and Placement Year)
  • UIBA-N20E Undergraduate Management (with Foundation Year)
    • Year 4 of N20E Management (with Foundation Year)
    • Year 4 of N23N Management with Accounting (with Foundation Year and Placement Year)
    • Year 4 of N23M Management with Accounting (with Foundation Year)
    • Year 4 of N23E Management with Digital Business (with Foundation Year)
    • Year 4 of N23F Management with Entrepreneurship (with Foundation Year)
    • Year 4 of N23D Management with Finance (with Foundation Year)
    • Year 4 of N252 Management with Marketing
    • Year 4 of N254 Management with Marketing (with Foundation Year)
    • Year 4 of N23P Management with Strategy and Organisation (with Foundation Year)
  • UIBA-N20C Undergraduate Management (with Placement Year/Undergraduate Partnership Programme)
    • Year 4 of N20M International Management (with Finance)
    • Year 4 of N20B Management
    • Year 4 of N20D Management (Undergraduate Partnership Programme)
    • Year 4 of N20C Management (with Placement Year)
    • Year 4 of N20Q Management with Accounting (with Placement Year)
    • Year 4 of N236 Management with Digital Business (with Placement Year)
    • Year 4 of N237 Management with Entrepreneurship (with Placement Year)
    • Year 4 of N232 Management with Finance
    • Year 4 of N233 Management with Finance (with Placement Year)
    • Year 4 of N253 Management with Marketing (with Placement Year)
    • Year 4 of N23L Management with Strategy and Organisation
    • Year 4 of N20R Management with Strategy and Organisation (with Placement Year)
  • Year 3 of UMAA-G1NC Undergraduate Mathematics and Business Studies
  • Year 3 of UMAA-G1N2 Undergraduate Mathematics and Business Studies (with Intercalated Year)
  • UIOA-EOS Undergraduate Overseas Exchange
    • Year 1 of UEOS Undergraduate Overseas Exchange
    • Year 1 of UEOS Undergraduate Overseas Exchange
  • Year 4 of UPXA-F3ND Undergraduate Physics and Business Studies (with Intercalated Year)
  • Year 3 of UPXA-F3N2 Undergraduate Physics with Business Studies
  • Year 1 of UIOA-EUS Undergraduate USA Exchange