INVESTMENT ANALYSIS - 2020/1
Module code: MANM282
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.
Surrey Business School
VESSEY Jane (SBS)
Number of Credits: 15
ECTS Credits: 7.5
Framework: FHEQ Level 7
JACs code: N321
Module cap (Maximum number of students): N/A
Prerequisites / Co-requisites
MANM097 (Foundations of Finance) is a pre-requisite for this module
- 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 type||Unit of assessment||Weighting|
|School-timetabled exam/test||CLASS TEST 50 MINS||30|
|Examination||2 HOURS CLOSED BOOK EXAM||70|
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.
- 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.
|001||Understand how investment analysis fits into the investment process||KP|
|002||Understand the role of asset allocation||KP|
|003||Compute yields for bonds and other fixed income securities||KCP|
|004||Understand the main drivers of bond prices - duration and credit risk||KCP|
|005||Analyse a company based on the economic environment, its industry, and individual characteristics||KCPT|
|006||Value a company's shares using discounted cash flow and relative valuation methods||KCPT|
|007||Identify and critically appraise different investment styles and the investment criteria they use.||CP|
|008||Evaluate investment performance against a peer group or an investment benchmark such as an appropriate stock market index||KCP|
C - Cognitive/analytical
K - Subject knowledge
T - Transferable skills
P - Professional/Practical skills
Overall student workload
Independent Study Hours: 117
Lecture Hours: 22
Tutorial Hours: 11
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 for INVESTMENT ANALYSIS : http://aspire.surrey.ac.uk/modules/manm282
Programmes this module appears in
|International Financial Management MSc||2||Optional||A weighted aggregate mark of 50% is required to pass the module|
|Business Analytics MSc||2||Optional||A weighted aggregate mark of 50% is required to pass the module|
|Economics MA||2||Optional||A weighted aggregate mark of 50% is required to pass the module|
|Economics and Finance MSc||2||Optional||A weighted aggregate mark of 50% is required to pass the module|
|Accounting and Finance MSc||2||Optional||A weighted aggregate mark of 50% is required to pass the module|
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.