Latest Module Specifications
Current Academic Year 2025 - 2026
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Description The objective of this module is to apply theoretical and analytical concepts to the investment management process. The course covers the theoretical and practical basis of portfolio management. It builds on the modern portfolio theory and focuses on the topics that are important for the practice of fund management. The course includes quantification of the relationship between risk and return, security valuation, asset allocation decisions, portfolio optimisation, performance measurement, portfolio analysis, implementation and computing technology that enhances fund management. The emphasis is on providing students with analytical skills that have an application value. The course aims to give students (1) a deep understanding of the investment management process, (2) be able to apply modern techniques to asset allocation and investment management, and (3) evaluate the performance of portfolio investments. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Learning Outcomes 1. LO1 analyse and critique mean-variance portfolio theory 2. LO2 demonstrate an understanding of how to model asset prices 3. LO3 estimate and differentiate between alternative portfolio investment strategies 4. LO4 evaluate the performance of investment funds (and fund managers) 5. LO5 appraise modern portfolio management techniques for asset allocation | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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All module information is indicative and subject to change. For further information,students are advised to refer to the University's Marks and Standards and Programme Specific Regulations at: http://www.dcu.ie/registry/examinations/index.shtml |
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Indicative Content and Learning Activities
Mean Variance Portfolio Theory Risk and return; diversification; efficient frontier; minimum variance portfolio; correlation structures; constraining the efficient frontier - short sales, riskless borrowing and lending Index Models Single index model; market model; multi-index model Simple techniques for portfolio selection Applying the single index model to determine the efficient frontier The relationship between index models and asset pricing models Capital asset pricing model and related equilibrium models; arbitrage pricing theory; empirical evidence and implications Evaluating Portfolio Performance Risk-adjusted measures; Sharpe, Treynor and Jensen Values; Fama decomposition; mutual fund performance; market timing; performance persistence Factor Models Fama and French 3 and 5 factor models; Carhart 4 factor model; Conditional and unconditional factor models Security Analysis Efficient markets; valuation process; earnings estimation and evaluation of earnings forecasts | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Indicative Reading List Books:
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Other Resources None | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||