Portfolio Management and Asset Allocation

Module description

Summary:

This module takes the perspective of portfolio management and aims to develop skills based on formal modeling of asset price procedures and empirical research findings particularly in an international setting and also aims to take a wider view considering ethical issues facing managers.

Additional Information:

Sustainability
All of the resources for this module are available on the ELE (Exeter Learning Environment).
External Engagement
Previously, we had the manager of the company RBC give a session on his own experience in fund management and answered questions posed by the students concerning their practical projects.
Employability
In this module, students learn how to work with portfolios, using data from Bloomberg and Datastream, which is highly valued by employers in the finance industry. Students also develop their presentation and team working skills.
At the end of this module, students take the Level2 CFA exam.

Full module specification

Module title:Portfolio Management and Asset Allocation
Module code:BEFM015
Module level:M
Academic year:2016/7
Module lecturers:
  • Dr Zhenxu Tong - Convenor
Module credit:15
ECTS value:

7.5

Pre-requisites:

None

Co-requisites:

None

Duration of module: Duration (weeks) - term 2:

11

Module aims

This module takes the perspective of portfolio management and aims to develop in students skills based on formal modelling of asset price procedures and empirical research findings particularly in an international setting. It also aims to take a wider view considering ethical issues facing managers. It expands economic analysis to take in issues arising in foreign exchange, international finance and financial economics.

ILO: Module-specific skills

  • 1. be able to resolve critically general problems in selecting investments in a global market
  • 2. be able to formulate critically asset allocation models and decisions
  • 3. be able to use different asset pricing models in portfolio formation
  • 4. understand and be able to appraise issues arising in code of ethics and standards of professional conduct
  • 5. be able to resolve some practical problems arising in complex 'real' environments

ILO: Discipline-specific skills

  • 6. develop rigorous theoretical arguments based on mathematical and analytical reasoning
  • 7. rigorously analyse problems in finance
  • 8. interpret financial data and problems in the light of established theories
  • 9. access a wide body of empirical research literature and critically appraise it
  • 10. use relevant databases, existing research literature and techniques to conduct a detailed investigation of problems arising in financial markets and models
  • 11. develop presentational skills.

ILO: Personal and key skills

  • 12. plan and manage his/her own study both individually and within a group
  • 13. make appropriate use of learning resources, including sophisticated computer datasets
  • 14. analyse critically problems arising in both academic and practical contexts
  • 15. present effectively results and achievements of individual and collaborative projects as developed through the mode of instruction using both individual and group assignments.

Learning activities and teaching methods (given in hours of study time)

Scheduled Learning and Teaching ActivitiesGuided independent studyPlacement / study abroad
301200

Details of learning activities and teaching methods

CategoryHours of study timeDescription
Contact hours20Lectures
Contact hours10Tutorials

Formative assessment

Form of assessmentSize of the assessment (eg length / duration)ILOs assessedFeedback method
HomeworkAssigned in lectures and discussed in tutorials 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 12, 13, 14Written/Oral

Summative assessment (% of credit)

CourseworkWritten examsPractical exams
30700

Details of summative assessment

Form of assessment% of creditSize of the assessment (eg length / duration)ILOs assessedFeedback method
Coursework30Group project assessed by a 15-minute presentation and a group report (maximum length 1,500 words) 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15Written/Oral
Written exam701.5 hours1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 12, 14Written/Oral
0
0
0
0

Details of re-assessment (where required by referral or deferral)

Original form of assessmentForm of re-assessmentILOs re-assessedTimescale for re-assessment
Coursework & ExamExamination (100%) 1.5 hours1-15Aug/Sep

Syllabus plan

• Introduction: Portfolio Management Process
• Asset Pricing Models in Portfolio Management
• International Aspects- Currencies and International Asset Pricing
• International Equity Investing – Top/Down Asset Allocation, International Ratio Comparison, Value
and Momentum Strategies, Tactical Asset Allocation, Timing Value/Growth Styles
• Code of Ethics
• Standards of Professional Conduct
• Soft Dollar Standards and Research Objectivity Standards
• Module Review and Revision

Indicative learning resources - Basic reading

CFA ® Level II Curriculum set

Module has an active ELE page?

Yes

Indicative learning resources - Other resources

Solnik, B. and McLeavey, D. (2004) International Investments, 5th ed., AIMR, UK: Addison Wesley
Reilly, F.K. and Brown, K.C, (2006) Investment Analysis and Portfolio Management, 8th ed., UK: Thomson South-Western.

Origin date

16/07/2014

Last revision date

01/09/2015