INVESTMENT ANALYSIS

350FIN
1. MODULE SUMMARY

Aims and Summary

This module provides students with an understanding of: the characteristics of, and
methods used in the valuation of, bond and equity financial investments. The
teaching of the model will be focused around the use of practical problem solving
exercises using, where possible, real-world financial data.

Module Size and credits

Module size Single

CATS points 20.0

ECTS credits 10.0

Open/Restricted Restricted

Availability on/off campus On Campus only

Total student study hours 200

Number of weeks 16

School responsible Faculty of Business, Environment and Society

Academic Year 1-Aug-2012

Entry Requirements (pre-requisites and co-requisites)

250FIN or 251FIN or equivalent

Pre-requisite Modules: (250FIN or 251FIN) or equivalent

Excluded Combinations

None

Composition of module mark (including weighting of components)

25% Coursework and 75% Exam

Pass requirements

Coursework must be at least 35% and Exam must be at least 35% and Module Mark
must be at least 40%

Special Features

None

Course stages for which this module is mandatory

BESU039 BA Stage 3 Financial Economics

BESU043 BA Stage 3 Business and Finance
BESU039 BA Stage 4 Financial Economics
BESU158 BA Stage 3 Finance and Investment

Course stages for which this module is a core option

BESU045 BA Stage 3 Accounting and Economics

BESU157 BA Stage 3 Economics Studies
BESU067 BA Stage 3 Business and Economics
ECU103 BSc Stage 3 Business Mathematics
BESU041 BA Stage 4 Accounting and Finance
BESU041 BA Stage 3 Accounting and Finance
ECU008 BSc Stage 3 Mathematical Sciences
ECU005 BSc Stage 3 Financial Mathematics
BESU150 BA Stage 3 Accounting and Finance for International
Business
BESU010 BA Stage 3 Accountancy
ECU118 BSc Stage 3 Financial Mathematics
ECU121 BSc Stage 3 Business Mathematics
ECU105 BSc Stage 3 Mathematical Studies
BESU151 BA Stage 3 Financial Studies
ECU123 BSc Stage 3 Mathematical Studies

2. TEACHING, LEARNING AND ASSESSMENT

Intended Module Learning Outcomes

The intended learning outcomes are that, on completion of this module,

the student should be able to:

1. Apply quantitative and qualitative fundamental analysis, and where

appropriate technical analysis, to determine the intrinsic values of bonds
and shares,
 2. Evaluate alternative bond and share investment strategies,

3. Analyse and interpret alternative methodologies used in the valuation of

bonds and shares.

Indicative Content

Bond analysis: the bond market, bond valuation and pricing, alternative
yield measures, bond convexity and bond duration.
Passive and active bond investment strategies: immunisation, laddering,
horizon matching and riding the yield curve.
Term structure of interest rates.
Share valuation: dividend discount model and relative valuation
techniques.
Share investment strategies: value, growth, income and contrarian
investment strategies.
Volatility and risk analysis: risk measurement, CAPM and extensions to
the basic model.
Technical and fundamental analysis and the Efficient Markets
Hypothesis.

Teaching and Learning

Through a series of lectures and problem-solving-based seminars.

Method Of Assessment (normally assessed as follows)

The intended learning outcomes will be assessed as follows:

1 class-based coursework phase test (5 credits, learning outcomes 1,2,

and 3).
1 end-of-year unseen 3 hour examination (15 credits, learning outcomes
1,2 and 3).

All the learning outcomes will be formatively assessed via sets of practice
seminar problems on each topic covered. Students will be given the option
of taking 2 class-based phase tests with the highest mark being used for
the coursework grade.

The examination will consist of two sections; these will relate respectively
to bonds and shares. A minimum of one question much be answered from
each section plus one other should be answered from either of the two
sections.
 Re-assessment: Coursework and/or examination equivalent to the failed
component(s).

Date of last amendment

March 2010

3. MODULE RESOURCES

Essential Reading

C. Jones, (2010), Investments Principles and Concepts, (11th Edition), Wiley (332.6
JON)

Recommended Reading

H Levy, (2002), Fundamentals of Investments, FT Prentice Hall ( 332.6 LEV)

Required Equipment

None

4. MODULE ORGANISATION

Module leader

Name Dr T Rodgers

Telephone number 02477 65 7187

E-mail ecx004@coventry.ac.uk

Length and month of examination

3.00 hours in May

Common Exam(s)

None

Exam Equipment Required

None

Expected teaching timetable slots

 Note that some tutorials/seminars may be provided at times other than those
shown below. Timetable information should be verified with the School
responsible for the module

No timetable information available

Subject Quality and Approval information

Board of Study Economics, Accounting and Finance

Subject Assessment Board Economics & Finance (UG)

Shortened title INVEST ANAL

Date of approval by BoS 18-Nov-2012