Modules for course N3CR | MSC/IMGT10
MSc Investment Management (10 month)
These were the modules for this course in the 2016–17 academic year.
- ASB-4403: Int'l Financial Markets (15) An overview of financial markets and instruments; Review of the concepts of risk and return; Portfolio theory and diversification; The capital asset pricing model; Other asset pricing models; Efficient markets, behavioural finance and anomalies; Hedging, speculation and arbitrage; Foreign exchange and derivative markets; Option characteristics and option pricing; Forwards, futures and swaps.
- ASB-4405: Int'l Financial Management (15) The financial management of multinational companies (MNCs). The macroeconomic, fiscal, currency and political environments. Determinants of exchange rates, and purchasing power and interest rate parity. Management of exchange rate exposure through forwards, options. Corporate financing decisions and the role of the global financial markets. Cost of capital and performance evaluation; capital investment appraisal. Working capital management and the positioning of funds in the MNC.
- ASB-4416: Financial Modelling (15) Valuation of financial cash flows and rates of return; Expected return models and event studies in finance; The Law of One Price in finance and pricing financial claims via arbitrage; Portfolio theory and the modelling of investment portfolios; Value at Risk; Bootstrap methods; Brownian motion; Monte Carlo methods in finance; Pricing financial claims via replication and Black-Scholes option pricing.
- ASB-4450: Financial Stability (15) • Theories of financial crises; • The role of central banks for financial stability; • Financial stability implications of the industrial organization of banking systems; • Measuring systemic risk; • Too systemically important to fail and related phenomena; • Contagion and interbank markets; • Financial stability and the real economy; • The policy responses to financial instabilities and regulation; • Tools to evaluate bank soundness: Stress testing techniques.
- ASB-4601: Research Methods (15) Describing and summarising data; Probability and probability distributions; Principles of statistical inference; Correlation and regression analysis; Regression models for panel data.
- ASB-4406: Financial Analysis (15) Balance sheet and income statement analysis; Financial ratio analysis and inter-firm comparison; Trend analysis and financial forecasting; Analysis of profitability and growth; The quality of financial statements, and using financial statements in valuation; Cash accounting, accrual accounting and discounted cash flow valuation; Pricing book values and earnings; Assessment of credit and equity risk.
- ASB-4425: Invstmt Strat & Portfolio Mgmt (15) The characteristics and roles of investment institutions; Investment objectives and the asset allocation decision; Principles of portfolio management; Bond valuation and bond portfolio management strategies; Equity portfolio management strategies; Performance measurement;
- ASB-4441: Current Issues - Int'l Finance (15) • Derivative Securities analysis and risk management • Hedge funds and Emerging Markets Investment • International/Global Investment • Credit rating agencies, Sovereign/bank debt/ratings and current regulatory reforms • International Monetary System and Trade Policy and exchange rates
- ASB-4906: Applied Financial Projects (30) (Semester 3) Students will choose 2 Applied Business Projects from the list below. It is envisaged that a small number of additional projects will be made available depending on the research interests of new staff and it is possible that the menu of projects might vary slightly from year to year within an equivalent structure. 1. Private Banking and Wealth Management 2. Marketing Financial Services 3. Operations Management Each of these is taught in a five-day series of lectures, workshops and discussions scheduled over a four-week period in June.
30 credits from:
- ASB-4408: Financial Econometrics (15) (Semester 2) • Review of the linear regression model: estimation and hypothesis testing; • Dynamic regression models: distributed lag and autoregressive models; • Non-stationarity and testing for unit roots; • Modelling long-run relationships: cointegration; • Modelling volatility: univariate ARCH and GARCH models; • Regression analysis using panel data.
- ASB-4417: Financial Engineering (15) (Semester 2) Introduction to financial engineering; Static replication -creation, decomposition and analysis of financial products; Dynamic replication; Hedging strategies; Convexity, volatility and credit risk in financial engineering; Case studies in financial engineering.
- ASB-4437: Merger and Acquisition (15) (Semester 2) Theory of the firm: "Build vs Buy"; Current issues in the M&A landscape; Motives for M&A; How do mergers work? When do mergers work? Winners and losers; Valuation in the context of an acquisition; Criteria for value-adding acquisitions; Cross-border vs domestic acquisitions.
- ASB-4446: Financial Ethics & Regulation (15) (Semester 2) The lecture programme will outline the principle areas of content with specific skills honed within seminars. The lecture programme will be introduced through considering past cases of poor ethical practice in financial services industry to motivate the subsequent studies. The module will then develop to consider moral and normative ethics in a business context, the application of ethical principles within key financial services areas including lending, investment and trading. The lecture programme will then consider the role of individuals, organisations and corporate governance arrangements in financial services decision making, expected professional standards and the evolution of conduct of business regulation internationally within the financial services industry.