Unit information: Investment Management in 2020/21

Unit name	Investment Management
Unit code	ECONM2030
Credit points	15
Level of study	M/7
Teaching block(s)	Teaching Block 2 (weeks 13 - 24)
Unit director	Dr. Friederich
Open unit status	Not open
Pre-requisites	Asset Pricing ECONM2035
Co-requisites	None
School/department	School of Accounting and Finance - Business School
Faculty	Faculty of Social Sciences and Law

Description including Unit Aims

This unit describes the techniques used by investment managers to build and maintain portfolios of stocks and bonds and the techniques used by investors to assess portfolio manager performance.

As such, the course would be excellent preparation for those considering a career in fund management or quantitative trading.

The course has a largely practical bias but the material is presented from a rigorous, model-based perspective. We start with a review of the theory relevant to investment strategies and portfolio choices (market efficiency, basic asset pricing models, the Grossman/Stiglitz paradox…)

The course then develops the theoretical tools to assess the risk-adjusted performance of investment strategies. The unit also examines in detail the empirical evidence available on the performance of professional portfolio managers.

Intended Learning Outcomes

1. Demonstrate understanding of and critically evaluate the theory relevant to investment strategies and portfolio choices (market efficiency, basic asset pricing models, the Grossman/Stiglitz paradox…);
2. Demonstrate understanding of and critically evaluate models of active equity and bond portfolio management;
3. Demonstrate understanding of and critically evaluate various metrics for assessing portfolio manager performance;
4. Demonstrate understanding of and critically evaluate in detail the empirical evidence available on the performance of professional portfolio managers.

Teaching Information

Teaching will be delivered through a combination of synchronous and asynchronous sessions including lectures, tutorials, drop-in sessions, discussion boards and other online learning opportunities

Assessment Information

This unit will be assessed by 100% exam

Reading and References

• Bodie, Kane and Marcus, Investments, McGraw-Hill.

• Litterman, B., Modern Investment Management, Wiley,

• Grinold and Kahn, Active Portfolio Management, McGraw-Hill