The course focuses on investment issues involved in the portfolio management process and financial securities, including equities, bonds, and derivatives, associated with international financial markets and multinational companies.

10 x 2-hour seminars, 8 x 1-hour breakout sessions.

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■ In course exam (15%)

■ Group assignment: 2,000 words (25%)

■ Degree exam (60%)

The aim of the course is to provide students with a thorough understanding of portfolio or fund management, as well as of the nature of international financial markets and of the securities that are traded on them. The course stresses the necessity of deciding on the investment goals before taking any other decisions that hinge on concepts of risk, return, and valuation. Various asset pricing models will be applied to practical investment problems. The course further provides an in-depth understanding on the international issues of diversification and fund management.

1. Critically assess the mechanisms of capital markets from the perspective of both an individual investor and financial institutions;

2. Appraise the different elements of portfolio management using various techniques of measuring risk and returns for portfolio revision and evaluation;

3. Evaluate pricing techniques for various financial assets specifically equities, bonds and options, traded within the financial markets;

4. Demonstrate a critical approach to the management of investment portfolios including the evaluation of investment decisions that bridge theory and practice;

5. Estimate the term structure of interest rates and forward interest to evaluate bond management strategies;

6. Assess and compare various basic and advanced options trading strategies;

7. Critically judge whether international portfolio diversification, with its increasing opportunity set for investors, is a sensible strategy especially in the context of emerging markets.

8. Work collaboratively in a group to produce a combined output, by liaising with other class members, allocating tasks and co-ordinating group meetings.

Students must submit at least 75% by weight of the components (including examinations) of the course's summative assessment.