Module code: EC3077
Module co-ordinator: Linda Ralphs
The type of investments that an investor should hold will depend on many factors and will vary significantly between different investors depending on risk and return profiles.
Investments fall into two main categories, fixed income securities (or 'bonds') and equities. Bonds may pay a fixed income to the holder but they are not without risk. Equities are shares in companies and they tend to be riskier than bonds but have the potential for very high returns. Investment managers aim to build portfolios of investments for their clients that will maximise the return for a given risk profile.
Functioning and structure of equity markets
Theory and the empirical evidence of equilibrium asset pricing models
Diversification and passive investment strategies
Investment strategies and evaluating their performances
Bond markets and the different financial instruments
Analytics of bond pricing as well as the measurement of risk (duration and convexity)
20 one-hour lectures
5 one-hour seminars
- Exam, 90 minutes (80%)
- Coursework (20%)