Course description

Investment Analysis


This course intends to provide an understanding of the investment environment and process. The investment environment includes the kinds of marketable securities that exist and where and how they are bought and sold. The process is concerned with decision-making, how much to invest in each security and when to make these investments. The course also focuses on the valuation of the different securities.

Course content

  • Bond Valuation
  • The Term Structure of Interest Rates
  • Stock Valuation models
  • Risk and Expected Return
  • Modern Portfolio Theory
  • Equilibrium in Capital Markets
  • Market Efficiency
  • Performance rvaluation
  • Introduction to derivatives (if time permits)

Learning outcome knowledge

Upon completion of the course, students shall comprehend key concepts and the analytics of financial investment analysis such as

  • Expected returns and idiosyncratic as well as portfolio risks;
  • The concept of diversification;
  • To demonstrate risk-management skills by taking positions in financial options' contracts in order to hedge an underlying asset portfolio


Exam organisation

  • Written assignment: 15%
  • Written assignment: 15%
  • Written exam: 70%