PRINCIPLES OF FINANCE AND INVESTMENT - 2024/5
Module code: MANM524
Module Overview
The module provides the theoretical underpinnings of our MSc Accounting and Finance programme. It introduces the pivotal concepts which form the basis of theoretical finance under three broad headings; Portfolio Theory and Practice, Equilibrium in Capital Markets and Introductory Analysis of Asset Classes. Core concepts include the relationship between risk and return, the Capital Asset Pricing Model (CAPM) and the Efficient Market Hypothesis (EMH) but the module also extends this analysis into new theoretical areas such as Behavioural Finance.
Module provider
Surrey Business School
Module Leader
BWALYA Mirriam (SBS)
Number of Credits: 15
ECTS Credits: 7.5
Framework: FHEQ Level 7
Module cap (Maximum number of students): N/A
Overall student workload
Independent Learning Hours: 80
Lecture Hours: 20
Seminar Hours: 10
Guided Learning: 20
Captured Content: 20
Module Availability
Semester 1
Prerequisites / Co-requisites
None
Module content
Indicative content includes, but not exhausted to:
- A framework for studying investment and financing decisions, agency problems and ethical issues
- Valuation
- Present and future values, valuing bonds and common stocks
- Investment
- Investment criteria, investment decisions, agency problems
- Risk
- Risk and return, Portfolio theory, Capital Asset Pricing Model
- Financing- Financing choices, Efficient Markets and Behavioural Finance
Assessment pattern
| Assessment type | Unit of assessment | Weighting |
|---|---|---|
| Online Scheduled Summative Class Test | ONLINE CLASS TEST 50 MINUTES | 30 |
| Examination | In-person EXAM (DURATION 120 MINUTES) | 70 |
Alternative Assessment
Not applicable
Assessment Strategy
The assessment strategy is designed to provide students with the opportunity to demonstrate all learning outcomes through two summative assessments.
Thus the Summative Assessments are:
1. A mid-term online class test based on the first 5 weeks lectures material
2. An in-person exam covering all topics will be held at the end of the module.
The purpose of the mid-term test early in the module is to ensure that students are engaged in the module and their understanding of core concepts and principles is evaluated.
Formative Assessment and feedback:
Students will receive oral feedback during seminars and through feedback and guidance provided in SurreyLearn. Students are encouraged to utilize further support available from the module team through Student Feedback and Consultation hours.
Module aims
- Provide students with the core theoretical concepts required for the study of finance at the Masters' level.
- Prepare students for their future specialisations
- Provide students with a thorough synthesis of the most important current research in portfolio theory.
Learning outcomes
| Attributes Developed | ||
| 001 | Identify the techniques required to trade-off between risk and return to achieve their investment goals in the dynamic practical world | CK |
| 002 | Analyse and select the appropriate instrument to mitigate risk associated with investment | CKT |
| 003 | Demonstrate an in-depth conceptual understanding related to a sound investment strategy | K |
| 004 | Critically address the challenges faced by the financial market during the crisis | CT |
| 005 | Make informed decisions in complex and unpredictable situations | CKT |
Attributes Developed
C - Cognitive/analytical
K - Subject knowledge
T - Transferable skills
P - Professional/Practical skills
Methods of Teaching / Learning
The learning and teaching strategy is designed to allow a student to develop a theoretical background in finance. Based on this finance theory the student will develop a mixture of academic and industry knowledge and by numerical problem-solving skills they will enhance analytical and decision taking powers. This is in line with the programme's learning and teaching strategy which develops the academic skills that underpin the practical applications of finance theory.
Learning and teaching methods: The material is organized into nine 'topics' spread over the duration of the module.
In lectures, key topics, themes and theories will be explored.
In seminars, students will practice the application of both theory and applications.
The course concludes with a review session.
All announcements will be communicated through SurreyLearn. Students are expected to use the discussion forum to communicate with each other and can also give their feedback. The questions raised on SurreyLearn will be addressed in a timely manner. Students are most welcome during student feedback and consultation hours for any clarification related to the module. After having the theoretical knowledge the student should try to solve the theoretical and practical exercises given in 'Connect' and should also try to do the exercises (theory and practical) given at the end of the chapter of the textbook. Every week students are required to do case studies, theoretical and practical exercises in seminars. So, they need to practice and read the topic carefully before coming to class. The topics are closely related to each other, and the students need to follow the class from the very beginning. Finally, the students are expected to attend all classes.
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: MANM524
Other information
Employability: The contents of this module is largely consistent with the latest CFA Curriculum regarding portfolio management. In addition, the module provides a variety of tasks and assessments that mimic real professional life.
Global and Cultural Capabilities: This module offers a high level of international content drawn from lecture's research activities and teaching strengths.
Digital Capabilities: Throughout the module, students learn to navigate and use the Virtual Learning Environment such as SurreyLearn, Zoom, and MS Teams. Students will also learn Excel, Datastream, and other international databases, which provides students with access to the same working practices that investment professional's use.
Resourcefulness & Resilience: The effectiveness of the Resourcefulness and Resilience will be inherent in assessments in the module. Sustainability: The module aims at developing students understanding, awareness, and capability to develop innovative solutions to deal with key agendas related to sustainable finance conduct.
Programmes this module appears in
| Programme | Semester | Classification | Qualifying conditions |
|---|---|---|---|
| Investment Management MSc | 1 | Compulsory | A weighted aggregate mark of 50% is required to pass the module |
| International Financial Management MSc | 1 | Compulsory | A weighted aggregate mark of 50% is required to pass the module |
| Accounting and Finance MSc | 1 | Compulsory | A weighted aggregate mark of 50% is required to pass the module |
| Business Analytics MSc | 1 | Optional | A weighted aggregate mark of 50% is required to pass the module |
| International Corporate Finance MSc | 1 | Compulsory | A weighted aggregate mark of 50% is required to pass the module |
| FinTech and Policy MSc | 1 | Optional | A weighted aggregate mark of 50% is required to pass the module |
| Economics MA | 1 | Compulsory | A weighted aggregate mark of 50% is required to pass the module |
| Economics and Finance MSc | 1 | Compulsory | 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 2024/5 academic year.