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Disclaimer: All reasonable steps have been taken to ensure that the information contained on the website is accurate at the date it was published. Nelson Mandela University reserves the right to make changes to the module details (e.g. lecturer, pre-requisites, etc.) as published on the website.
Investment Management (EBMG402)
This module is presented as follows in 2024:
- SUMMERSTRAND CAMPUS SOUTH: Full-Time (A1)
Can be used as a major: No
Offered in: Term 3+4
Credit value: 20
Estimated fees: R4970
Lecturer: KRUGER, J
- SUMMERSTRAND CAMPUS SOUTH: Part-Time (A2)
Can be used as a major: No
Offered in: Term 3+4
Credit value: 20
Estimated fees: R4970
Lecturer: KRUGER, J
Syllabus
PURPOSE
This module will prepare and allow students to:
• Explain the investment management process and describe the investment environment in South Africa;
• Demonstrate knowledge, insight and understanding of relevant investment management theories by distinguishing between acceptable and unacceptable investment practices;
• Adopt a systematic approach to analysing specific investment challenges and issues;
• Study, comment on and debate topics and issues highlighted in current investment literature;
• Apply investment and risk-management tools and databases to demonstrate their output and capabilities;
• Analyse the financial statements and evaluate the earnings and performance of investment companies;
• Prepare investment planning assignments with the assistance of investment and risk-management tools and databases to prepare and explain specific investment products based on client needs as part of building a needs- and risk-appropriate investment portfolio;
• Prepare solutions for the end-of-chapter problems based on relevant case studies;
• Present research findings in class.
CORE CONTENT
• Introduction:
o The investment environment.
o Risk and return.
• Financial markets and security types:
o Classifying securities.
o Interest-bearing securities.
o Equities.
o Derivatives.
o Option contracts.
• Fundamental analysis:
o Macro-economic and industry analysis.
o Earnings and cash flow analysis, including financial statements.
• Valuation of ordinary shares:
o Security analysis.
o The dividend discount model.
o The two stage dividend growth model.
o Price ratio analysis.
• Share price behaviour and market efficiency:
o Technical analysis.
o Market efficiency.
o Price behaviour and market efficiency.
• Interest rates and bond markets:
o Term structure of interest rates.
o Bond prices and yields.
o Corporate bonds (debentures).
o Government bonds.
o Mortgage-backed securities.
• Options, derivatives and futures:
o Stock (share) options.
o Option valuation.
o Future contracts.
• Portfolio management:
o Diversification and asset allocation.
o Return, risk and the security market line.
o Bond portfolio management strategies.
o Equity portfolio management strategies.
o Unit trusts.
o International finance and investments.
Evaluation criteria
100% Continuous assessment.
The weights of the various continuous assessments done for this module throughout the semester are indicated in the study guide, and include:
• Weekly Moodle quizzes
• Homework submissions (Individual or group work)
• 1x Sector report (Individual or group work)
• 2x Semester tests
• End of module assessment
MODERATION
External.
Prerequisites
None.
Evaluation criteria
Evaluation criteria
100% Continuous assessment.
The weights of the various continuous assessments done for this module throughout the semester are indicated in the study guide, and include:
• Weekly Moodle quizzes
• Homework submissions (Individual or group work)
• 1x Sector report (Individual or group work)
• 2x Semester tests
• End of module assessment
Prerequisites
None