Accounting and Finance
Theory of Investments
Module code: N1553
Level 5
15 credits in autumn semester
Teaching method: Lecture, Seminar
Assessment modes: Coursework, Unseen examination
This module presents the common types of investments and provides a thorough grounding in the analysis of investment portfolios. The module covers traditional asset classes and the investment environment, including the investment process as well as a discussion of mutual funds and other investment companies.
The theory of investments is introduced with a focus on standard risk-return-based asset allocation methods. Building on the theory, the module explores popular index models and empirical asset pricing models and their applications to investment analysis. The module also introduces the basics of investing into financial derivatives such as futures and options.
Module learning outcomes
- Critically understand the general principles of common type of investments
- Critically understand, and apply, underlining concepts of the risk-return relationship and the principle of diversification
- Understand limits of knowledge of standard asset pricing models
- Deploy portfolio theory to performance measurement and passive and active portfolio management