Module details for Investments and Portfolio Management


CommunicationProblem SolvingResearchQuantitativeProfessionalism


The aim of this module is to equip financial managers with the analytical tools to make sound investment decisions. The module is designed to be taught at an intermediate level and builds-up on the finance knowledge acquired in modules such as corporate finance or business finance.

Learning Outcomes

By the end of this module the student should be able to:

1.  Critically evaluate the benefits and limitations of investments in securities such as stocks, bonds and derivatives.

2.  Demonstrate the ability to apply portfolio theory in decision making.

3.  Critically evaluate the behavioural finance critique.

Indicative Content

1 The Investment Environment

The risk-return trade-off and the efficient pricing of financial assets are central to the investments process. The role of financial markets and their degree of efficiency is an important factor to support investors.

2 Fixed-Income Securities

Debt securities are often called fixed-income securities because they promise either a fixed stream of income or one that is determined according to a specified formula. These securities have the advantage of being relatively easy to understand because the payment formulas are specified in advance and there is no uncertainty about the size and time of their payments.

3 Equity Valuation

The price of a stock depends on the dividend and earnings that can be expected from the firm. In analysing a firm’s prospects, it often makes sense to start with the broad economic environment, examining the state of the aggregate economy and even the international economy. This analysis combined with the appropriate equity valuation model provides the guidance to the investor to operate in financial markets.

4 Portfolio Theory and Practice

Introduction to Risk, Return and the Historical Record. Risk Aversion and Capital Allocation to Risky Assets. Optimal Risky Portfolios.

5 Options, Futures and Other Derivatives

Introduction to Option Markets. Option Valuation. Futures Markets. Futures, Swaps and Risk Management.

6 Behavioural Finance and Technical Analysis

Understanding the behavioural critique. Technical Analysis and Behavioural Finance.

Teaching and Learning Work Loads

Teaching and Learning Method Hours
Lecture 28
Tutorial/Seminar 10
Practical Activity 0
Assessment 50
Independent 112
Total 200

Guidance notes

SCQF Level - The Scottish Credit and Qualifications Framework provides an indication of the complexity of award qualifications and associated learning and operates on an ascending numeric scale from Levels 1-12 with SCQF Level 10 equating to a Scottish undergraduate Honours degree.

Credit Value – The total value of SCQF credits for the module. 20 credits are the equivalent of 10 ECTS credits. A full-time student should normally register for 60 SCQF credits per semester.


We make every effort to ensure that the information on our website is accurate but it is possible that some changes may occur prior to the academic year of entry. The modules listed in this catalogue are offered subject to availability during academic year 2021/22 , and may be subject to change for future years.