AIN3220 - Investment and Risk Analysis

Year of Study:3 – 4
Credit Units: 3
Duration: 45hours
Prerequisites: AMS1001 Introduction to Linear Algebra and Calculus and AMS1302 Probability and Statistical Theory; or with the Module Coordinator’s permission and upon endorsement of the relevant Head.
Module Description
This module introduces the principles of investment and asset pricing models to the students. Topics covered include risk measures such as Value at Risk (VaR) and Conditional Tail Expectation (CTE), mean-variance portfolio analysis, Capital Asset Pricing Model (CAPM), Arbitrage Pricing Theory (APT), efficient market hypothesis, and behavioral finance.
Learning Outcomes
Upon completion of this module, students should be able to:

  1. understand the concept of risk measures and calculate risk measures;

  2. apply the concepts of diversification and mean-variance portfolio theory;

  3. apply capital asset pricing model and arbitrage pricing theory in asset pricing; and

  4. explain market phenomena with the concepts of efficient market hypothesis and behavioral finance.