Overview
This course examines the theory and practice of investment analysis and portfolio management. Topics include financial markets and instruments, risk and return, diversification, correlation and covariance, modern portfolio theory, efficient frontiers, the capital asset pricing model, factor models, market efficiency, and security valuation.
Students analyze equity and fixed-income securities, including common stock valuation, bond pricing, duration, and interest-rate risk. The course also considers mutual funds, exchange-traded funds, alternative investments, portfolio performance evaluation, behavioral finance, and ethical responsibilities in investment advice.
Applied work develops proficiency in interpreting financial statements and market data, estimating expected returns and risk, constructing portfolios, preparing investment policy statements, conducting portfolio simulations, and evaluating recommendations using quantitative evidence. Consideration is given to fees, taxation, inflation, liquidity, and investor risk tolerance.
Learning Outcomes
- Evaluate the structure and operation of investment markets and major financial instruments.
- Calculate and interpret measures of investment return, risk, correlation, covariance, beta, and systematic risk.
- Apply modern portfolio theory, the capital asset pricing model, and factor models to investment decisions.
- Value common stocks and fixed-income securities using appropriate financial models and market data.
- Construct diversified portfolios aligned with stated investment objectives, constraints, and risk tolerances.
- Assess portfolio performance using risk-adjusted measures, including Sharpe and Treynor ratios.
- Analyze the effects of fees, taxes, inflation, liquidity, and behavioral factors on investment outcomes.
- Formulate evidence-based investment recommendations that address professional ethics and fiduciary responsibilities.
Timetable
| Type | Length | Frequency | Period |
|---|---|---|---|
| Lecture | 2 hours | Weekly | All semester |
| Tutorial | 1 hour | Weekly | All semester |
| Workshop | 2 hours | Fortnightly | All semester |
| Practicum | 2 hours | Fortnightly | Second term |
Assessment Schedule
| Type | Description | Weighting |
|---|---|---|
| Assignment | Investment market and security analysis assignment | 15.00% |
| Quiz | Quizzes (5 × 2%) | 10.00% |
| Test | Mid-semester test | 20.00% |
| Deliverable | Portfolio construction and investment policy statement | 15.00% |
| Capstone | Portfolio simulation and performance evaluation report | 25.00% |
| Exam | Final examination | 15.00% |
Teaching Staff & Programs
This course is delivered jointly by faculty from the participating programs listed below. In line with the Douchewater Way, the University of Sexology tailors core instruction directly to each cohort's specific discipline — adapting curriculum to program needs rather than forcing students into a one-size-fits-all model. Learn more about our approach at The Douchewater Way.