Overview

The module will cover the following aspects: Investors, investment objectives and mechanics of investment; Investment risk and return; Portfolio theory, Capital Asset Pricing Model; Valuation (time value of money); Equities (characteristics, valuation, world equity markets); Fixed Income securities (characteristics, world bond, valuation, understanding credit ratings and yield); and Investment management (Efficient Market Hypothesis, fundamental and technical analysis, and Investment management strategies).

Assessment Strategy

-threshold -Satisfactory standard 'D- to D+':No major omissions or inaccuracies in the deployment of information/skills. Some grasp of theoretical/conceptual/practical elements. Integration of theory/practice/information present intermittently in pursuit of the assessed work's objectives.

-good -High Standard 'B- to B+':Very good performance. Most of the relevant information accurately deployed. Good grasp of theoretical/conceptual/practical elements. Good integration of theory/practice/information in pursuit of the assessed work's objectives. Evidence of the use of creative and reflective skills.

-excellent -Excellent standard 'A- to A*':An outstanding performance, exceptionally able. The relevant information accurately deployed. Excellent grasp of theoretical/conceptual/practice elements. Good integration of theory/practice/information in pursuit of the assessed work's objectives. Strong evidence of the use of creative and reflective skills.

-another level-Average Standard 'C- to C+':Much of the relevant information and skills mostly accurately deployed. Adequate grasp of theoretical/conceptual/practical elements. Fair integration of theory/practice/information in the pursuit of the assessed work's objectives. Some evidence of the use of creative and reflective skills.

Learning Outcomes

• Apply basic valuation techniques to equity and fixed income instruments and show understanding of the principal drivers of returns.

• Demonstrate understanding of the typical investment objectives of key classes of investors, including the risk-return relationship and the role of risk aversion.

• Understand approaches to selecting investments and the role of portfolio diversification, both across asset classes and geographically.

• Understand the mechanics of investment in financial markets and the main features of key world markets.