Investment Analysis and Portfolio Management
BEE 3016
2006 - 2007
Level: 3
Credit value: 30
Duration: 1 year
Status: Option
Pre-requisites: None
Co-requisites: None
Co-ordinator: Gareth Myles
Staffing: Gareth Myles and Cherif Guermat
Outline
The explosion of interest in capital markets throughout both the developed and
developing worlds has produced a demand for new financial products and a more
rigorous understanding of existing instruments such as bonds and equities. The module
provides an introduction to the theory of financial markets and the practice of investment
analysis.
Aims
The module has two aims:
1. To provide students with a foundational knowledge of analytical investment
theory.
2. To guide students in the practical application of investment analysis.
Intended Learning Outcomes
The intended learning outcomes of the module are to provide students with:
1. An introduction to financial markets and financial instruments
2. Details of theories of market equilibrium.
3. Methods of valuation of financial instruments.
4. Practice in the application of financial theory.
Time Commitment
During Term 1, the module will involve 2 hours of lectures and exercise classes as
required. These will be given by Gareth Myles.
During Term 2, the module will involve 2 hours of lectures and exercise classes as
required. These will be given by Cherif Guermat.
The total time commitment expected from students is 10 hours per week.
Assignments
The module will involve the completion of a Christmas Worksheet and an Easter
Worksheet. These will be graded but not assessed.
Assessment Method
The module is assessed by a 3 hour written examination in May/June. The format of the
examination will be:
3 questions to be chosen from Section A (Term 1, 4 questions) and Section B (Term 2, 4
questions) with at least 1 question answered from each section.
Reading
The recommended text for the module is:
Investments by W.F. Sharpe, G.J. Alexander and J.V. Bailey (Prentice Hall 1999),
You are advised to sample the course for a few weeks before purchasing.
Comprehensive lectures notes and the lecture slides for the first term can be downloaded
from:
http://www.ex.ac.uk/~gdmyles/GDM.html (Teaching, Investment Analysis and Portfolio
Management)
Syllabus
1. Introduction to capital markets
2. Portfolio theory
4. Models of market price
5. Derivatives
6. Empirical testing