Portfolio Management and Valuation (AFCP801)

This unit equips students to apply an advanced body of finance knowledge to a range of contexts. The unit commences with an individual investor’s perspective and then progresses to the viewpoint of a professional funds manager. This enables the student to develop the ideas of portfolio theory, asset pricing and behavioural finance. The unit continues with a security analyst’s perspective to address the broad question of how to value enterprises and then drills down to security valuation, financial statement and cash flow analysis. Lastly, we shift the focus to that of a derivatives trader to explore the pricing of forwards and options and employing these derivatives to achieve desired asset allocation exposures. The unit emphasises an applied orientation for the major techniques and themes to be further extended and developed across the Masters program. It represents the essential prerequisite knowledge for all other core units and elective streams.

Learning Outcomes:

  1. Explain and apply the key theories, concepts, and models relevant to portfolio management, derivatives, financial analysis and valuation.
  2. Critically evaluate the key theories, concepts, and models relevant to portfolio management, derivatives, financial analysis and valuation.
  3. Apply research methods to evaluate investment portfolio construction principles and asset pricing theory.
  4. Solve problems, through the use of applications, relevant to portfolio management, derivatives, financial analysis and valuation.

Topics:

  1. Asset Allocation
  2. Asset Pricing Model
  3. Portfolio Optimisation
  4. Behavioural Finance Overview, Market Efficiency and Anomolies
  5. Fundamental Stock Analysis
  6. Derivatives

Prerequisite Units:

Lecturers:

Unit Guides:

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