Assessment details
15% midterm test
85% final examination
Educational aims & objectives
The module focuses on introducing investment decision-making and improved portfolio management techniques, mainly from a practitioner's point of view within an investment banking and asset management context. This is an introductory course into real world portfolio management that aims to combine fundamental theoretical building blocks with cutting edge industry practises and real life examples. The module focuses on introducing state-of-the-art methodologies which are used by professional portfolio managers and will develop skills based on modelling of asset price procedures and empirical research findings. It also takes a wider view considering a variety of practical issues concerning portfolio managers and strategic asset allocation, including risk management from a portfolio theory perspective and recent geopolitical challenges within the industry.
The course will cover a variety of traditional asses classes such as equities, bonds, credit and others, as well as more alternative investment ideas, including crypto currencies and blockchain essentials. No prior knowledge in portfolio management theory is assumed and informal dynamic participation throughout is encouraged.
Learning outcomes
On the successful completion of the module, students should:
- Understand the fundamentals of asset pricing within a portfolio management context.
- Understand and be able to apply the key performance metrics in portfolio management
- Be familiar with core theoretical concepts in portfolio management and how they are used in practise.
- Understand and be able to use fundamental theorems into practice within an investment banking context.
- Demonstrate a good grasp of dynamic performance management and be able to separate between different styles of portfolio management.
- Demonstrate knowledge of all key risk management metrics and how they are being used as key decision elements in portfolio management.
- Understand, have a clear knowledge, and be able to separate between financial and non financial assets, give examples of alternative assets, and how they can be included within a diversified portfolio.
- Be able to identify opportunities for portfolio performance maximisation based on both probabilistic and other criteria
- Understand the specifics of each asset class and be able to identify investment opportunities and critically decide on whether to include an asset within a portfolio
- Have a clear understanding of market mechanics, brokerage and exchange practises, bid and ask prices and spreads.
Teaching pattern
2-hour lecture (x10)
1-hour tutorial (x9)
Suggested reading list
Managing investment portfolios workbook: a dynamic process (2007) by John L. Maginn
Modern portfolio theory and investment analysis (2017) by Edwin J. Elton