Covers the essential analytical and quantitative tools applied in the investment management industry. It provides students with the knowledge and skills required to construct and manage portfolios of financial securities. Examines both index funds and actively managed portfolios, the mix of different types of assets in portfolios, and the role of derivative securities in portfolio management. Focuses on portfolio theory, investment analysis, quantitative analysis and portfolio risk management. An essential component involves the use of software programs (MS-Excel) in applying concepts to the real-world market environment.”

We propose taking out factor models for two reasons:

i) Factor models are discussed in the context of portfolio risk management
ii) By removing factor models, we want to give the lecturer flexibility to use either this type of models or other models (such as value at risk) to discuss portfolio risk management.
We propose taking out Barra because we no longer subscribe to the software. This was used when Thomas H and David G taught the subjects.