FM445      Half Unit
Portfolio Management

This information is for the 2020/21 session.

Teacher responsible

Dr Walker Ray


This course is available on the Global MSc in Management, MSc in Accounting and Finance, MSc in Econometrics and Mathematical Economics, MSc in Economics and Management, MSc in Financial Mathematics and MSc in Risk and Finance. This course is not available as an outside option.

Global MSc in Management ('Accounting and Finance' and 'Finance' concentrations only).

This course is available to other students from the Departments of Economics, Mathematics, and Statistics where regulations permit. This course is not available as an outside option.

Course content

This course aims to cover the main topics in equity portfolio management. Some of the topics covered in the course include: Portfolio optimization techniques; Multi-factor models and their applications; Trading strategies; International portfolio management and currency hedging; Trading costs; Portfolio performance measurement and attribution; Style analysis; Mutual funds; Hedge funds. The course is based on a number of empirical applications and case studies, so that students can gain a better understanding of implementation issues related to managing an equity portfolio.


20 hours of lectures and 10 hours of seminars in the LT.

Formative coursework

Regular classworks will be completed, handed in and marked as part of formative assessment for this course. For the most part, the classwork is based on Excel applications of the models and empirical studies covered in lectures.

Indicative reading

A study pack will include lecture notes and case studies. All relevant articles will be made available during the course. Useful references are Modern portfolio theory and investment analysis, by E. J. Elton, M. J.Gruber, S. J. Brown, and W. N. Goetzmann, Wiley Press; Modern investment management, by Bob Litterman and the Quantitative Resource Group, GSAM, Wiley Press; Investments, by Z. Bodie, A. Kane, and A. Marcus, McGraw-Hill Irwin.


Exam (80%, duration: 2 hours, reading time: 10 minutes) in the summer exam period.
Coursework (20%).

The 20% coursework comprises five homework assignments and one project.

Important information in response to COVID-19

Please note that during 2020/21 academic year some variation to teaching and learning activities may be required to respond to changes in public health advice and/or to account for the situation of students in attendance on campus and those studying online during the early part of the academic year. For assessment, this may involve changes to mode of delivery and/or the format or weighting of assessments. Changes will only be made if required and students will be notified about any changes to teaching or assessment plans at the earliest opportunity.

Key facts

Department: Finance

Total students 2019/20: 80

Average class size 2019/20: 10

Controlled access 2019/20: Yes

Value: Half Unit

Guidelines for interpreting course guide information

Personal development skills

  • Problem solving
  • Application of numeracy skills
  • Commercial awareness