The module is designed to provide students with a thorough understanding of international financial investments. In particular the module will provide students with an appreciation of the investment environment and the skills and critical awareness necessary to make good investment decisions. More specifically, key material includes portfolio and capital market theory, asset valuation, investment management and behavioural aspects of investment decisions.

The topics covered include an introduction to the investment environment: equity securities, fixed income securities; the efficient market hypothesis and behavioural finance; risk and return: measures of risk and returns; Portfolio and capital market theory: dealing with uncertainty, portfolio risk and return, analysing portfolio risk, the role of diversification, modern portfolio theory; Portfolio selection: efficient portfolios and diversification; Asset Pricing Models: risk-return trade-off, capital market line, security market line, Capital Asset Pricing Model (CAPM), Arbitrage Pricing Theory (APT); Equity valuation: dividend discount models, technical analysis, the role of sentiment; Evaluation of investment performance.

Understand and critically engage with the fundamental market efficiency theory and concepts that inform modern investment portfolio theory. Critically evaluate modern investment portfolio theory in relation to behavioural finance concepts. Describe and apply modern portfolio theory in a simulated real-world, international investment setting. Develop both specialised technical and broad research, analytical and creative thinking skills which are fundamental to decision-making, when creating and managing an investment portfolio. Compute and evaluate risk and return measures for individual assets and portfolios. Compute and analyse financial asset prices using appropriate asset pricing theories. Demonstrate the ability to communicate, collaborate, negotiate and persuade within an international investment analysis and management context. Critically evaluate investment portfolio performance. Reflect on own learning and apply appropriate skills and strategies to understand the importance of continuous learning as a lifelong process. Develop skills to manage one's own learning in a self-directed manner.

N/A

N/A

The module will be taught using a combination of lectures and tutorials. The students will also have access to the KBS Trading Floor to support their collaborative investment portfolio simulation. In lectures, students will present their reflections on their trading simulation, throughout the semester, both to support peer-learning and to develop their communication skills. The tutorials will focus on the practical and computational aspects of the course.