Introduction to the module

This module combines an Introduction to Investment Valuation & Portfolio Theory with the essential building blocks for financial analysis. The module covers the basic concepts.  It is designed to be universal in application and no prior knowledge is required.  It will apply equally to both graduates with the suitable post qualification experience and more experienced practitioners.

• To understand the tools required for financial and investment analysis, including basic financial mathematics and statistics;
• To understand the principles required for constructing a portfolio and how its performance is measured;
• To introduce participants to the basic forms of modelling that can be used in practice.

• Financial mathematics
• Applying DCF techniques to investment projects
• Introduction to statistics
• Investment indices
• Application of statistics to performance measurement in securities markets
• Basic portfolio theory
• Risk and return

By the end of this module, you should be able to:

• Understand the use of statistics and financial mathematics in investment valuation and analysis

• Value investments in simple situations

• Appreciate the use of DCF and apply DCF techniques in investment project appraisal

• Understand the principles of index construction and the principles of performance measurement

• Understand basic portfolio theory

• Appreciate the relevance of risk and return in a portfolio context.