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Module ADB-3217:
Buddsoddiant

Module Facts

Run by Bangor Business School

10 Credits or 5 ECTS Credits

Semester 1

Organiser: Prof Owain ap Gwilym

Overall aims and purpose

Darparu sylfaen gadarn yn y theori a'r ymarfer sy'n ymwneud â'r dosbarthiadau prif asedau.
I ddarparu lefel uwch o ddealltwriaeth am ddadansoddi buddsoddiad.

To provide students with a solid grounding in the theory and practice relating to the principal financial asset classes. To Provide an advanced level of understanding of investment analysis. To address major issues of concern to all types of investors, including risk-return relationship, assets valuation techniques, portfolio management and mechanics of investment in financial markets. To provide students with essential research and practical skills for investment in today's ever changing environment, linking theory to practice.

Course content

Mae'r cynnwys yn cynnwys yr agweddau canlynol: Buddsoddwyr, amcanion buddsoddi a mecanweithiau buddsoddi; risg ac adenillion buddsoddi; theori portffolio a'r model prisio asedau cyfalaf; prisiad (gwerth amser arian); ecwiti (nodweddion, prisiad, marchnadoedd ecwiti'r byd); gwarantau incwm sefydlog (nodweddion, bond y byd, prisiad, deall cyfraddau credyd a chynnyrch); a rheoli buddsoddiadau (rhagdybiaeth effeithlon o'r farchnad, dadansoddiad sylfaenol a thechnegol, a strategaethau rheoli buddsoddiadau).

The content includes the following aspects: Investors, investment objectives and mechanics of investment; Investment risk and return; Portfolio theory and the 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 Criteria

threshold

Trothwy: D- to D+ (40-49%): Dim o bwys wedi ei hepgor neu'n anghywir o ran defnyddio gwybodaeth/sgiliau. Rhywfaint o ddealltwriaeth o elfennau damcaniaethol/cysyniadol/ymarferol. Cyfuno theori/ymarfer/gwybodaeth i'w weld yn ysbeidiol wrth gyflawni amcanion y gwaith a asesir.

D- to D+ (40-49%): 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.

C- to C+

Lefel Arall: C- i C+ (50-59%): Llawer o’r wybodaeth a’r sgiliau perthnasol wedi’u defnyddio'n gywir at ei gilydd. Dealltwriaeth ddigonol o elfennau damcaniaethol/cysyniadol/ymarferol. Integreiddio gweddol o theori/ymarfer/gwybodaeth wrth geisio cyflawni amcanion y gwaith a asesir. Peth tystiolaeth o ddefnyddio sgiliau creadigol ac adfyfyriol.

C- to C+ (50-59%): 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.

excellent

Rhagorol: A- i A+ (70%+): Perfformiad rhagorol. Defnyddio'r wybodaeth berthnasol yn gywir. Dealltwriaeth ragorol o elfennau damcaniaethol/cysyniadol/ymarferol. Integreiddio da o theori/ymarfer/gwybodaeth wrth geisio cyflawni amcanion y gwaith a asesir. Tystiolaeth gref o ddefnyddio sgiliau creadigol ac adfyfyriol.

A- to A+ (70%+): Outstanding Performance. 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.

good

Da: B- i B+(60-69%): Perfformiad da iawn. Defnyddir y rhan fwyaf o'r wybodaeth berthnasol yn gywir. Dealltwriaeth dda o elfennau damcaniaethol/cysyniadol/ymarferol. Integreiddio da o theori/ymarfer/gwybodaeth wrth geisio cyflawni amcanion y gwaith a asesir. Tystiolaeth o ddefnyddio sgiliau creadigol ac adfyfyriol.

B- to B+ (60-69%): 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.

Learning outcomes

  1. Dadansoddi technegau prisio uwch gydag ecwiti ac offerynnau incwm sefydlog.

  2. Gwerthuso amcanion buddsoddi arferol dosbarthiadau allweddol o fuddsoddwyr, yn cynnwys y berthynas risg-adenillion.

  3. Gwerthuso mecanwaith uwch buddsoddi mewn marchnadoedd ariannol a phrif nodweddion marchnadoedd allweddol y byd.

  4. Gwerthuso dulliau uwch o ddewis buddsoddiadau a dadansoddi'n feirniadol swyddogaeth theori portffolio a chreu portffolio amrywiol.

Assessment Methods

Type Name Description Weight
Prawf Ar-lein / Online test 5
Prawf Ar-lein / Online test 20
Arholiad ysgrifenedig 2 awr / 2-hour written exam S1 75

Teaching and Learning Strategy

Hours
Private study

Amser darllen, paratoi a gwneud asesiadau

Reading time, preparing and taking assessments

80
Lecture

Darlith 2 awr

2-hour lectures

20

Transferable skills

  • Literacy - Proficiency in reading and writing through a variety of media
  • Numeracy - Proficiency in using numbers at appropriate levels of accuracy
  • Computer Literacy - Proficiency in using a varied range of computer software
  • Self-Management - Able to work unsupervised in an efficient, punctual and structured manner. To examine the outcomes of tasks and events, and judge levels of quality and importance
  • Exploring - Able to investigate, research and consider alternatives
  • Information retrieval - Able to access different and multiple sources of information
  • Inter-personal - Able to question, actively listen, examine given answers and interact sensitevely with others
  • Critical analysis & Problem Solving - Able to deconstruct and analyse problems or complex situations. To find solutions to problems through analyses and exploration of all possibilities using appropriate methods, rescources and creativity.
  • Presentation - Able to clearly present information and explanations to an audience. Through the written or oral mode of communication accurately and concisely.
  • Teamwork - Able to constructively cooperate with others on a common task, and/or be part of a day-to-day working team
  • Argument - Able to put forward, debate and justify an opinion or a course of action, with an individual or in a wider group setting

Subject specific skills

  • skills in recording and summarising transactions and other economic events; preparation of financial statements; analysis of the operations of business (for example, decision analysis, performance measurement and management control); financial analysis and projections (for example, analysis of financial ratios, discounted cash flow analysis, budgeting, financial risks)
  • knowledge of theories and empirical evidence concerning financial management, risk and the operation of capital markets (in cases of degrees with significant finance content).
  • Analysis, deduction and induction. Economic reasoning is highly deductive, and logical analysis is applied to assumption-based models. However, inductive reasoning is also important. The development of such analytical skills enhances students' problem-solving and decision-making ability.
  • An appreciation of the nature of the contexts in which finance can be seen as operating, including knowledge of the institutional framework necessary for understanding the role, operation and function of markets and financial institutions (e.g. the economic, legal, regulatory and tax environment, both national and international; the firm; the capital markets and the public sector).
  • A knowledge of the major theoretical tools and theories of finance, and their relevance and application to theoretical and practical problems (e.g. concept of arbitrage and examples of its use; financial mathematics and capital budgeting criteria; informational efficiency; optimal risk sharing; portfolio theory; asset pricing models and the valuation of securities; cost of capital; derivative pricing; risk management; information asymmetry; principal agency relationships; signalling; Fisher separation and capital budgeting criteria; behavioural finance; term structure and the movement of interest rates; determination of exchange rates and financial intermediation).
  • An understanding of the factors influencing the investment behaviour and opportunities of private individuals (bonds, equities, and derivatives; risk aversion; risk/return trade-offs; portfolio management and performance measurement; pensions and long term savings; the tax treatment of savings and investments; international diversification; forex risk; objectives of and constraints on institutional investors and advisors).
  • An understanding of financial service activity in the economy, and an appreciation of how finance theory and evidence can be employed to interpret these services (for example, information asymmetry, adverse selection and moral hazard could be employed to analyse the fundamental nature of services, such as insurance, pensions, bank lending and consumer credit, and also explore fundamental problems arising in such financial service provision. Efficient market hypothesis could be used to explore evidence for fund manager performance and the effectiveness of equity and bond saving services).
  • Problem solving and critical analysis: analysing facts and circumstances to determine the cause of a problem and identifying and selecting appropriate solutions.
  • Research: the ability to analyse and evaluate a range of business data, sources of information and appropriate methodologies, which includes the need for strong digital literacy, and to use that research for evidence-based decision-making.
  • Numeracy: the use of quantitative skills to manipulate data, evaluate, estimate and model business problems, functions and phenomena.
  • Self-management: a readiness to accept responsibility and flexibility, to be resilient, self-starting and appropriately assertive, to plan, organise and manage time.

Resources

Resource implications for students

No

Talis Reading list

http://readinglists.bangor.ac.uk/modules/adb-3217.html

Reading list

Bodie, Z., Kane, A. and Marcus, A.J. (2019). Essentials of Investments. 11th edition, McGraw-Hill.

McGraw-Hill. Pilbeam, K. (2018). Finance and Financial Markets. 2nd Edition, Palgrave Macmillan.

Courses including this module

Compulsory in courses:

Optional in courses: