SSST Subjects

EC425 Portfolio Management


Programme(s) where module is offered

  • BSc Economics with Finance
  • BSc in Business and Management with Finance

Status (core, option, free choice)

Option (Finance minor)


FHEQ Level



Unit Value



Semester taught



Pre-Requisite Modules or Qualifications



Module Code



Module coordinator



Applicable From



Educational Aims of the Module

  • The module introduces students to management of portfolios and benefits of diversification.
  • The module starts with a review of statistics, correlated random variables and other concepts necessary to understand the modern portfolio theory.
  • Afterwards, the module covers derivation of the Capital Asset Pricing Model and efficient mean/variance portfolios which illustrated why only systematic risks are priced and why (theoretically) investors will always end up with a market portfolio and so called passive investment strategy.
  • In the final part, the module covers active investment strategies and portfolios consisting of different asset classes.

Module Outline/Syllabus

  • Random behaviour of asset prices, correlations and correlated random variables

  • Portfolio theory and the mean/variance optimisation

  • Passive vs. active investing

  • Empirical evidence on active investing performance

  • Active investing strategies

  • Portfolios of stocks, bonds and derivatives

  • Portfolio risk management


Student Engagement Hours

Type Number per Term Duration Total Time


15 1.5 22.5


5 1.5 7.5


5 1.5 7.5
Tutorials 5 1.5 7.5

Total Contact Hours


Total Guided/Independent Learning Hours

Total Engagement Hours 150.0

Assessment Method Summary

Type Number Required Duration / Length Weighting Timing / Submission Deadline



3 hours


Week 17

Mid-semester test


2 hours


Week 8

Group investment analysis / report and presentation


2000 words

20 minutes



Week 15


Module Outcomes

Intended Learning Outcomes:

  • Critical understanding of risk diversification

  • Understanding of portfolio theory and mean-variance optimisation

  • Understanding pricing of systematic and idiosyncratic risks

  • Understanding of investment strategies involving stocks, bonds and derivatives

  • Critically evaluate portfolio’s risk exposure and return

Teaching and Learning Strategy:

  • Lectures on module material (ILO: 1-5)

  • Research/investigation assignments for self-study engagement (ILO: 1, 4, 5)

  • In-class exercises (ILO: 2)

Assessment Strategy:

  • Written Exams (ILO: 1-5)

  • Group Report (ILO: 1-5)

Practical Skills:

  • Interpret market data from a variety of sources

  • Evaluate investment reports

  • Apply portfolio management and risk mitigation tools in other areas

Teaching and Learning Strategy:

  • Lectures on module material (PS: 1-3)

  • In-class exercises (PS: 1-3)

Assessment Strategy:

  • Written Exams (PS: 1,2)

  • Group Report (PS: 1-3)

Transferable Skills:

  • Problem-solving skills

  • Presentation skills

  • Ability to work as part of a team

  • Communication skills: written and oral

Teaching and Learning Strategy:

  • Class Exercises (TS: 1-4)

  • Group Report (TS: 1-4)

Assessment Strategy:

  • Group Report assignment (TS: 2-4)

  • Written examination (TS: 1,3,4)


Key Texts and/or other learning materials

Set text

  • Elton, E. J. et al (2014) Modern Portfolio Theory and Investment Analysis, 9th Edition, Wiley

Supplementary Materials

  • Brown, K., Reilly, F., (2015), Analysis of Investments and Management of Portfolios, Cengage Learning

  • Bodie, Z. et al., (2011), Investments and Portfolio Management, 11th Edition, McGraw Hill

  • Johnson, R., (2014), Equity Markets and Portfolio Analysis, John Wiley & Sons

  • Kent baker, H., Filbeck, G., (Eds) (2013), Portfolio Theory & Management, OUP USA

  • Obstfeld, M., Taylor, A., (2005), Global Capital Markets: Crisis and Growth, Cambridge University Press

  • Pachamanova, D. A. & Fabozzi, F. J. (2016) Portfolio Construction and Analytics, Wiley

  • Institutional Investors Journals (2017), The journal of Portfolio Management,

Please note

This specification provides a concise summary of the main features of the module and the learning outcomes that a typical student might reasonably be expected to achieve and demonstrate if he/she takes full advantage of the learning opportunities that are provided.

More detailed information on the learning outcomes, content and teaching, learning and assessment methods of each module and programme can be found in the departmental or programme handbook.

The accuracy of the information contained in this document is reviewed annually by the University of Buckingham and may be checked by the Quality Assurance Agency.

Date of Production : January 2017

Date approved by School Learning and Teaching Committee

Date approved by School Board of Study

Date approved by University Learning and Teaching Committee

Date of Annual Review


Posjeti nas

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Bosna i Hercegovina

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