Investments

This subject covers investment analysis, with emphasis on equity securities and fixed interest securities. The topics covered focus on issues fundamental to financial managers, money managers, risk managers, financial advisers and regulators. These topics include: fundamental ideas in asset pricing, modern portfolio theory, and their applications; equilibrium theories of asset pricing; empirical evidence on security returns; key issues in pricing fixed interest securities; and techniques in fixed interest portfolio management.

• 1Discuss core concepts in finance, including risk, return, risk premium and risk aversion;
• 2Analyse the portfolio selection problem, with emphasis on the mean variance framework;
• 3Critically evaluate theories of asset pricing and their applications in the pricing of securities;
• 4Analyse issues in the pricing of fixed interest securities and the management of portfolios;
• 5Apply investments knowledge to challenging and complex real-world scenarios.