This course will cover several aspects of modern portfolio theory and its practical implications. The students are first introduced to commonly use quantitative tools and fundamental financialconcepts including optimal portfolio selection, asset pricing, market efficiency and behavioural finance. Students will then be exposed to the asset management industry and be required to apply their theoretical knowledge to understand the process of developing, managing and evaluating these assets. To ensure deep learning of the tools and concept taught in this course, extensive use of real-world data to demonstrate how real-life situations play out. The students will also learn various strategies to manage funds, issues that impact performance, and issues in benchmarking and performance evaluation. Equities, Fixed Income Securities, Commodities, Real Estate, Alternate Funds, Emerging, Developing and Developed markets will be examined in the context of portfolio construction.

After completing this course, the student will be able to:

1. Explain Modern Portfolio theory and the Mean-Variance Framework;
2. Create an optimal investment portfolio by applying the portfolio theory
3. Derive the capital asset pricing model (CAPM) and other asset pricing models;
4. Apply CAPM and alternative factor models to measure and price risk, and identify and exploit mispriced securities
5. Discuss the notion of market efficiency and reconcile it with the anomalies found in the data;
6. Evaluate the performance of managed investments
7. Compare active and passive investment strategies, and their associate benefits and costs;
8. Collect and synthesiseinformation and materials from a variety of different sources to support an argument.

1. Risk and return measurement, interpretation and historical perceptive;
2. Portfolio Theory
3. Portfolio selection and asset allocation
4. The Capital market theory and asset pricing models
5. The efficient market hypothesis
6. Behavioural finance
7. Mutual funds and their performance

Elton, E. J., Gruber, M. J., Brown, S. J., &Goetzmann, W. N. (2014). Modern portfolio theory and investment analysis. 9^th Edition, John Wiley & Sons.‏

Reilly, F. K., & Brown, K. C. (2011). Investment analysis and portfolio management. Cengage Learning.‏
Bodie, Z., Kane, A., & Marcus, A. J. (2009). Investments, 8^th Edition. International Edition.‏
Case Studies: will be distributed