In this module you will learn about the assets that are traded in stock markets, as well as insights offered by behavioural finance for portfolio investments.
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Credits
15
Module code
BU42003
This module gives you an overview of stock markets and will also explore the composition of portfolios and consider behavioural aspects of investing in them. Having an awareness of stock markets is beneficial for many reasons:
personal investment opportunities
understanding the economy
seeking entrepreneurial opportunities
future employment possibilities
What you will learn
In this module you will:
learn about stock markets and the techniques used to value the assets that are traded in these modern markets and included in investors' portfolios
learn how investors analyse portfolio performance and learn about the fast-growing world of behavioural finance theory and how it helps us understand investment decision-making in practice
discover the importance of ethical issues associated with managing a portfolio of securities
learn about the different approaches to measuring portfolio performance and investigate the performances of portfolios which include fund investments, bonds and hedge funds
Bond securities are an important part of modern financial markets and you will learn about their key features and the way in which these assets are valued.
By the end of the module you will:
develop the skills to analyse information from a number of sources and use problem solving skills to analyse, evaluate and interpret a range of portfolio
understand the notion of behavioural finance and the importance of understanding the ways in which investors behave in practice, including the differences between this and traditional theoretical predictions.
have an awareness of human psychology, learning that investors are in fact not rational, creating a conflict with traditional theories
realise the potential role of biases when making portfolio decisions and understand why these exist
develop transferable skills of managing time effectively to undertake the relevant reading for the course and prepare for the test and exam for this module
Assignments / assessment
Multiple choice test (20%)
In-person computer test, based on the first half of the module
Final Exam (80%)
In-person three hour unseen exam
Teaching methods / timetable
3 x one hour in-person sessions each week, combining lecture material, problem-solving and class discussions. All sessions will be recorded to provide the opportunity for revision.
Week
Topics covered
1
Performance measures for managed funds and asset allocation
2
Ethical investing and hedge funds
3
Professional ethical standards; bonds: valuation and duration
4
Bonds: Interest rate risk
5
Bonds: Passive and active management
6
Introduction to Behavioural Finance: Wants and benefits