POSTGRADUATE STUDY

CONTEMPORARY ISSUES IN
FINANCE AND INVESTMENTS

Code: 399004

Level: 9

Points: 30

Prerequisites: Finance Undergraduate

Corequisites: None

Student Learning Time: 300 hours comprising 39 hours of class contact and 261 of
independent study.

Prescriptor: The last decade has witnessed rapid and profound changes in
the finance industry, including the development of new
products, for example hedge funds. New research indicates
some investment strategies lead to excess returns,
unexplained by the efficient markets assumption of finance
theory. This paper will provide an in-depth investigation of the
current portfolio management strategies and topical issues in
financial economics.

Paper Aims: This (intensive) paper will provide an in-depth investigation of

the current portfolio management industry. Using the most
recent academic research findings we study the investment
process of both private and professional investors. This
involves for instance the choice of asset classes, the
investment horizon and testing for market in-efficiencies. After
exploring the models of asset pricing we focus on the
construction of actual portfolios. Finally the performance of
portfolio managers is evaluated.

399004 Contemporary Issues In Finance and Investment 2007.doc 1


Learning Outcomes:
Paper Content:
Suggested Learning and
Teaching Strategies:
Method of Assessment:
Suggested Resources:
399004 Contemporary Issues In Finance and Investment 2007.doc
The paper consists of both theoretical and practical sessions.
Every session the instructor first covers the most important
theoretical and the relevant empirical findings. After that
students prepare exercises and cases on related topics.
Students are expected to present the solution to these cases,
which then serve as a basis for a general discussion.
By the end of this paper students will be able to:
1. Critique the structure of the global investment industry,
2. Critique the latest empirical findings with respect to
portfolio theory,
3. Apply empirical tests on real-life data,
4. Understand the complex structure of investment
products,
5. Make decisions on investment choices,
6. Make and present cases on portfolio management,
7. Understand socially responsible investing.
• Historical return patterns of stocks and bonds
• Assets pricing models
• Stock market anomalies
• Equity portfolio management
• Alternative investments (hedge funds, real estate etc.)
• Socially Responsible Investments (SRI)
• Mutual Funds
A variety of approaches to learning will be taken in this paper.
Students are required to prepare for each class session with
selected readings or assigned research-related activities.
Class sessions will include discussion of key issues, and short
exercises. Opportunities for students to divide into groups will
be available in class time. Individual presentations on case
solutions are essential in this paper.
Number of assessment items: 3
• Cases / Exercises 40%
• Project 40%
• Class Presentations / Discussions 20%
In order to pass you need at least 50 marks out of 100.
There is no set text for the course; references, cases and
readings will be made available at the time of course delivery.
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