Find us +44 (0)113 2837100

BMM6013 - Investment and Trading Strategies

Objectives:

Assessment tasks are designed to enable students to demonstrate the Learning and Employability outcomes for the relevant level of study. Level Learning Outcomes are embedded in the assessment task(s) at that level. This enables a more integrated view of overall student performance at each level.

Content:

This module is designed to equip students with a thorough understanding of investment and trading strategies. The content focuses on the integration of theoretical frameworks with real-world applications, ensuring students can apply advanced financial techniques in equity markets. Students will explore the principles of modern portfolio theory (MPT), including the concepts of the efficient frontier and the security market line. The module emphasises diversification, risk-return trade-offs and the construction of optimised portfolios. It provides a detailed examination of valuation models, such as the Dividend Discount Model (DDM) and relative valuation methods, which are used to assess the intrinsic value of equities and inform investment decisions.

Students will learn to evaluate portfolio performance using quantitative measures such as the Sharpe ratio, Treynor ratio and Jensen’s alpha. Attribution analysis techniques will be introduced to identify the sources of portfolio returns and assess investment decisions. The module also covers the Efficient Market Hypothesis (EMH) and its implications for trading strategies, alongside an exploration of market anomalies such as seasonality and event-driven effects to identify potential opportunities. A practical introduction to technical analysis techniques, including chart patterns, indicators and trend analysis, provides students with additional tools for equity trading.

The module incorporates extensive use of financial tools, such as Excel, data and analytics platforms (where available), to enhance students' analytical skills and simulate the practical aspects of portfolio management.

Learning and Teaching Information:

Lectures
Hours: 10
Intended Group Size: Cohort

Workshops
Hours: 30
Intended Group Size: 20

Guided independent study
Hours: 260

Further Details Relating to Assessment

Investment Portfolio: the assessment requires students to construct and manage an equity investment portfolio over a simulated period, applying theories and models taught in the module. The portfolio should reflect students' ability to integrate market analysis, valuation methods and strategic decision-making.

Summative feedback will be provided through detailed annotations on the submission, along with a written summary that highlights the strengths of the work, areas for improvement and practical recommendations for future investment analysis.

Formative feedback on module activities will be present throughout the module.

Full details are contained within the Module Handbook.

Assessment:

Fact File

Module Coordinator - PRS_CODE=
Level - 6
Credit Value - 30
Pre-Requisites - NONE
Semester(s) Offered -