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 306-331 Investments

Note

This subject is available to third-year students only.

Prerequisites

306-203 Business Finance.

Semester

2

Contact

Two 1-hour lectures and one 90-minute tutorial a week, plus up to eight 1-hour seminars presented by practitioners

Subject Description

This subject is aimed at students envisaging a career in portfolio management. Extension of the analysis of pricing of risky assets introduced in Business Finance through examining the CAPM in more detail and introducing the Arbitrage Pricing Theory. Pricing of derivative assets - futures and options - and the role of these assets in portfolio management. The fixed-interest market. Techniques of asset allocation and performance measurement; the theory and practice of portfolio hedging. Trading and market making practices.

Assessment

A major project/essay of no more than 3000 words (20%); tutorial assessment (5%); a 3-hour end-of-semester examination (75%).



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