Investment Management

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.

Topics covered

  • 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%)