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Module

Portfolio Management and Asset Allocation

Module description

This module takes the perspective of portfolio management and aims to develop skills based on formal modelling of asset price procedures and empirical research findings particularly in an international setting.

Additional Information:

Pre-requisite

Students must have taken one of the following modules:

BEAM047 Fundamentals of Financial Management

BEAM072 Principles of Finance

Sustainability

All of the resources for this module are available on the ELE (Exeter Learning Environment).

Employability

In this module, students learn how to work with portfolios. The module covers 70% CFA CBOK syllabus on the topic of the Portfolio Management and prepares students well for the CFA Level 2 exam on this topic.

Full module specification

Module title:Portfolio Management and Asset Allocation
Module code:BEFM015
Module level:M
Academic year:2022/3
Module lecturers:
  • Dr Linquan Chen - Convenor
Module credit:15
ECTS value:

7.5

Pre-requisites:

Students must have taken one of the following modules:

BEAM047 Fundamentals of Financial Management

BEAM072 Principles of Finance

Co-requisites:

None

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

11

Module aims

This module studies portfolio management, developing student skills in the formal modelling of asset price procedures and empirical research findings, particularly in an international setting. The module expands economic analysis to take in issues arising in foreign exchange, international finance and financial economics

ILO: Module-specific skills

  • 1. critically resolve general problems in selecting investments in a global market;
  • 2. critically formulate asset allocation models and decisions, using different asset pricing models in portfolio formations;
  • 3. demonstrate an understanding of the theories of international finance and monetary issues and apply them to real world situations; be able to resolve some practical problems arising in complex ‘real’ environments

ILO: Discipline-specific skills

  • 4. develop rigorous theoretical arguments based on mathematical and analytical reasoning, interpret financial data and rigorously analyse problems in the light of established theories;
  • 5. access and critically appraise a wide body of empirical research literature;
  • 6. use relevant databases, existing research literature and techniques to conduct a detailed investigation of problems arising in financial markets and models.

ILO: Personal and key skills

  • 7. plan and manage your own study, individually, making appropriate use of learning resources, including sophisticated computer datasets
  • 8. critically analyse problems arising in both academic and practical context;
  • 9. effectively present results and work.

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
Scheduled Learning and Teaching Activity2010 x 2-hour Lectures
Scheduled Learning and Teaching Activity1010 x 1-hour Tutorials
Guided Independent Study120Reading, research and reflection; Preparation for coursework, exams and tutorials.

Formative assessment

Form of assessmentSize of the assessment (eg length / duration)ILOs assessedFeedback method
Tutorial questions (Assigned in lectures and discussed in tutorials)Up to 10 questions 1-9Written/Verbal feedback

Summative assessment (% of credit)

CourseworkWritten examsPractical exams
01000

Details of summative assessment

Form of assessment% of creditSize of the assessment (eg length / duration)ILOs assessedFeedback method
Mid-term exam (MCQs)1040 mins1-8Written/Verbal feedback
Exam (written)902 hours1-9Written feedback
0
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
Mid-term exam (MCQs)Exam (MCQs) (10%) (40 mins)1-8Referral/Deferral Period
Exam (written)Final exam (90%) (2 hours)1-9Referral/Deferral Period

Syllabus plan

  •  Portfolio risk & return
  •  CAPM and performance evaluation
  •  Factor model, APT & factor investing
  •  Portfolio risk management
  •  Active portfolio management
  •  International portfolio management
  •  Applied portfolio management
  •  Electronic market, trade execution and technology for portfolio management
  •  Behavioural finance for portfolio management
  •  Selected advanced topics in portfolio management

Indicative learning resources - Basic reading

Basic reading:

  • Reilly, F.K., and Brown, K.C. (2015) Analysis of Investments and Management of Portfolios, 1st ed., Cengage Learning.[CA1] [TA2] 
  • Solnik, B. and McLeavey, D. (2004) International Investments, 5th ed., AIMR, UK: Addison Wesley
  • CFA ® Level II Curriculum set

Module has an active ELE page?

Yes

Indicative learning resources - Web based and electronic resources

Web-based and electronic resources:

Origin date

16/07/2014

Last revision date

25/01/2022