Investment Management

Module code: EC2007

By foregoing current consumption and allocating an amount of money in investments, investors expect to get compensated in future, usually in the form of a larger amount of money, and therefore to enhance their future consumption possibilities.

Investment management will introduce us to the various financial market instruments (not including derivatives, which will be covered in another module). We will learn to utilise the essential tools for making an investment decision and build the analytical skills to evaluate the performance of a specific investment. We will investigate the functioning and structure of equity markets, the analytics of bond valuation, and explore theories and empirical evidence of how financial assets are priced.

Topics covered:

• Security market indices
• Portfolio management
• Capital asset pricing model
• Arbitrage pricing model
• Efficient capital markets
• Equity evaluation
• Technical analysis
• Portfolio performance evaluation
• Bond valuation
• Term structure of interest rates