INVESTMENT ANALYSIS - 2020/1

Module Overview

The module focusses on the analysis and valuation of bonds and equities. For bonds, the pricing and computation of yields are covered in addition to measurement and impact of duration and credit risk on prices. For equities, a top-down approach to analysis is taken, starting with macroeconomic and industry analysis before moving on to individual company analysis.  Intrinsic and relative valuation methods are applied to company’s shares. Security selection is considered in the broader context of the investment management process, including asset allocation, styles of bond and equity investment, active versus passive investment, and measurement and analysis of investment performance. This module is particularly useful for students considering a career in finance; investment management, investment banking, investment consultancy or asset management.

Module provider

Surrey Business School

Module Leader

MILLIGAN Victoria (SBS)

Number of Credits: 15

ECTS Credits: 7.5

Framework: FHEQ Level 7

Module cap (Maximum number of students): N/A

Module Availability

Semester 2

Prerequisites / Co-requisites

MANM097 (Foundations of Finance) is a pre-requisite for this module

Module content

• Investment Decision Making Process


• Asset Allocation


• Fixed Income Analysis: Bond Valuation and Risk Factors


• Equity Analysis: Macroeconomic, Industry and Company Analysis


• Equity Valuation Methods


• Bond and Equity Investment Styles


• Performance Measurement


• Putting It All Together: Review of Investment Fund Reports

Assessment pattern

Alternative Assessment

Not applicable

Assessment Strategy

The assessment strategy is designed to provide students with the opportunity to demonstrate knowledge of analysis and valuation of individual securities, the investment decision making process, asset allocation, styles of management, performance measurement and review of fund reports,

Thus, the summative assessment for this module consists of:

• Closed book 50 minutes class test based on the first 5 weeks lectures to be held in week 7


• A 2 hour closed book exam covering all topics will be held at the end of the module.

Formative assessment and feedback

Students will receive oral feedback during seminars.

Feedback and guidance will be given via SurreyLearn throughout the module.

The class test provides feedback on theoretical underpinnings and typical calculations giving students an early indication where more work may be required.

Module aims

• The aim of the module is to understand how bonds and equities are analysed and valued and how this can be used to help build investment portfolios.
• The student will gain an understanding of the decisions made and the information they are based upon. Students will gain an insight into the broader investment management process and investment industry.

Learning outcomes

Methods of Teaching / Learning

The teaching and learning strategies is designed to facilitate students understanding of applied finance; how investment decisions are taken.

The teaching and learning methods includes lectures to establish key principles, seminars to focus on practical application and the use of SurreyLearn to distribute additional materials and data sources to facilitate discussion.  Additional resources such as DataStream and Bloomberg will be used where appropriate.

Indicated Lecture Hours (which may also include seminars, tutorials, workshops and other contact time) are approximate and may include in-class tests where one or more of these are an assessment on the module. In-class tests are scheduled/organised separately to taught content and will be published on to student personal timetables, where they apply to taken modules, as soon as they are finalised by central administration. This will usually be after the initial publication of the teaching timetable for the relevant semester.

Reading list

https://readinglists.surrey.ac.uk
Upon accessing the reading list, please search for the module using the module code: MANM282

Programmes this module appears in

Please note that the information detailed within this record is accurate at the time of publishing and may be subject to change. This record contains information for the most up to date version of the programme / module for the 2020/1 academic year.