Other languages of instruction: English, Spanish,
Financial Management III focuses on how to analyse investments and manage portfolios of any kind of assets (financial or real), introducing the student to the study and understanding of the different procedures and instruments.
In order to meet the requirements of the course, it is essential that students have a sound understanding of subjects studied previously, such as accountancy and financial statement analysis, statistics and econometrics, financial mathematics and both micro- and macroeconomics.
Students will acquire an in-depth understanding of the subject, enabling them to handle investment decision-making and portfolio management, understand the financial markets and the available asset classes (financial or real) and their characteristics.
- 01 - To be familiar with, understand and apply the methods, techniques and instruments specific to accounting.
- 04 - To understand and know how to use financial terms within a business framework.
- 05 - To understand the functions of corporate finance departments.
- 06 - To know how to apply the main policies for capital structure and asset management.
- 08 - To understand how leading world economies work, their institutions and interconnections.
- 10 - To identify long-term economic growth factors and understand the impact of globalisation.
- 18 - To provide mathematical models for financial phenomena.
- 19 - To analyse quantitative financial variables and take them into account when making decisions.
- 23 - To be familiar with and know how to use microeconomic and macroeconomic analysis terminology.
- 28 - To be able to work in another language and use terminology and structures related to the economic-business world.
- 31 - To develop the ability to identify and interpret numerical data.
- 36 - To interpret quantitative and qualitative data and apply mathematical and statistical tools to business processes.
- 41 - To be able to descriptively summarise information.
- 46 - To acquire the ability to understand and participate in conferences and lectures in an academic context.
- 58 - To be able to develop self-assessment exercises.
The student will be able to handle investment decision-making and portfolio management of all asset classes and have a sound understanding of financial market dynamics and their main drivers.
PART 1: THE INVESTMENT BACKGROUND.
1. An Overview of the Investment Process.
2. The Asset Allocation Decision.
3. The Global Market Investment Decision.
4. Securities Markets: Organisation and Operation.
5. Security Market Indexes.
PART 2: DEVELOPMENTS IN INVESTMENT THEORY.
6. Efficient Capital Markets.
7. An Introduction to Portfolio Management.
8. An Introduction to Asset Pricing Models.
9. Multifactor Models of Risk and Return.
PART 3: VALUATION PRINCIPLES AND PRACTICES.
10. Analysis of Financial Statements.
11. Security Valuation Principles.
PART 4: ANALYSIS AND MANAGEMENT OF COMMON STOCKS.
12. Macroanalysis and Microvaluation of the Stock Market.
13. Industry Analysis.
14. Company Analysis and Stock Valuation.
15. Equity Portfolio Management Strategies.
16. Technical Analysis.
PART 5: ANALYSIS AND MANAGEMENT OF BONDS.
17. Bond Fundamentals.
18. Bond Analysis and Valuation.
19. Bond Portfolio Management Strategies.
PART 6: SPECIFICATION AND EVALUATION OF ASSET MANAGEMENT.
20. Professional Money Management, Alternative Assets and Industry Ethics.
21. Evaluation of Portfolio Performance.
Teaching and learning activities
Classes, professor-notes, cases and activities to be resolved either indivually or in small groups, reading of articles, etc.
Evaluation systems and criteria
Evaluation activities during the course (no established dates): 20%.
Mid-course Examination: 30%. Consists of two parts: theoretical and practical.
Final Examination: 50%. Consists of two parts: theoretical and practical part. The final examination must be passed to obtain an average with other activities.
Second-call examination: 5 out of 7 is required to pass this examination. Consists of two parts: theoretical and practical. It will not average with other evaluations.
Final Mark: The resulting mark will be weighted by the attendance percentage, with an allowance of one missed class. As well for the second call exam. Inappropriate behaviour in class will count against the final mark.
Bibliography and resources
Title: Analysis of Investments & Management of Portfolios
Authors: Keith C. Brown and Frank K. Reilly