UCL School of Management

Module Fact Sheet

MSIN0021: Finance II (Investment Management)

Taught by
3rd year BSc/MSci Management Science
Delivery method
Two 2-hour lectures (x 4 weeks) and 2-hour seminar (x 4 weeks)
90% unseen 3-hour examination; 10% individual coursework (two problem sets)
Previous Module Code

Course overview

The trail-blazing advances in finance theory and practice over the past decades have profoundly changed the financial world. This module sets out to build on students’ knowledge of Business Economics and educate them about investments and securities pricing and provides a solid foundation for careers in securities trading and asset management. After establishing the tradeoff between risk and return in investing, the module delves into Modern Portfolio Theory, by introducing the mean-variance framework and the concept of an efficient frontier. Pricing models, which may include the Capital Asset Pricing Model (CAPM), the Arbitrage Pricing Theory (APT, and multi-factors models are then introduced, as well as the Efficient Market Hypothesis (EMH). Following portfolio theory, the module addresses bonds, including the pricing of bonds, and the relationship between their price and yield. The module also peeks into equity valuation and ends in a discussion about derivatives markets and pricing.  Further topics may include mutual funds, active vs. passive investing, and fixed income portfolio immunization.

Learning outcomes

Upon successful completion of the module, a student will be able to:

  • Understand how financial markets operate.
  • Analyse equities and bonds.
  • Undertake portfolio analysis.
  • Price simple financial assets.
  • Understand the various derivative instruments and their uses.

Topics covered

  • Asset classes and financial instruments
  • Securities markets
  • Portfolio theory
  • CAPM
  • Bond prices and yields.
  • Equity valuation
  • Options markets
  • Futures markets and risk management

Assessment summary

90% assessed by exam and 10% individual coursework (two problem sets)

Current students should refer to Moodle for specific details of the current year’s assessment.

Essential reading

Essentials of Investments

Authors: Bodie, Kane, & Marcus

Publisher: McGraw-Hill Education; 10 edition (16 Feb. 2017)

ISBN-10: 1259255042

ISBN-13: 978-1259255045

Past versions of this module

MSIN0021 18/19

MSIN202P 17/18

MSIN202P 16/17

Last updated Monday, 24 June 2019