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Investment Analysis

Unit code: BMAN20072
Credit Rating: 10
Unit level: Level 2
Teaching period(s): Semester 2
Offered by Alliance Manchester Business School
Available as a free choice unit?: N



Additional Requirements

BMAN 20072 has pre-reqs of:BMAN10522/BMAN10522(M) or BMAN10552. BMAN10552 must be passed at 60% or above to be eligible to take BMAN20072.BMAN23000 (A) or BMAN23000 (B) is a co-requisite of BMAN20072.

Pre-requisite course units have to be passed by 40% or above at the first attempt unless a higher percentage is indicated within this course outline. If the pre-requisite unit is defined as a compulsory course unit within your programme of study (Maths with Finance, IBFE, Accounting, BA Econ pathways for example) then progression onto the dependent unit is permitted as long as you have gained the appropriate amount of credit to progress on to the following year of your registered undergraduate programme.

BMAN10522/10522(M) Financial Decision Making or
BMAN10552 Fundamentals of Finance with an examination pass mark of 60% or above.

Co-requisites: BMAN23000(A) or (B) Foundations of Finance.

Dependent course units: BMAN30190 Empirical Finance (Only available to students specialising in Finance either singly or jointly and provided the following area pre-reqs have been passed. BMAN23000 (A) or (B) Foundations of Finance, BMAN20072 Investment Analysis and BMAN20081 Financial Statement Analysis).


This course develops the understanding and application of the theory, tools, terminology, and professional ethics of investments from a finance viewpoint. To maximise transferability of knowledge and skills, this course  emphasises general investment principles as opposed to details of specific securities and investment vehicles, which are subject to regular changes. Successful completion of the course lays the foundation for students wishing to pursue a career that involves providing and implementing investment advice.


The course covers portfolio theory, bond portfolio management, equity valuation, performance evaluation, international diversification, behavioural finance, professional ethics, and empirical evidence on security returns and investment ethics.

Teaching and learning methods

20 one hour lectures (2 hours per week over 10 weeks)
Plus 5 one hour workshops. 

Full details will be provided in the course outline at the start of the course.

Total study hours: 100 hours split between lectures, classes, self study and preparation for classes, coursework and examinations.

Informal Contact Methods
1. Office Hours
2. Online Learning Activities (blogs, discussions, self assessment questions)
3. Other :
- Workshops in small groups in which they solve queries and obtain feedback in a more informal setting.
- I usually also spend +/- 30 minutes after each lecture answering questions of students.
- Discussion form on Blackboard in which they can post questions. We commit to answering those within 3 business days.



Learning outcomes

On completion of this course successful students will be able to:
* acquire knowledge of the theory, tools, terminology and professional ethics of investment management;
* understand the limits of such knowledge and its effects on analyses and interpretation;
* develop numeracy and computational skills, power of inquiry, logical thinking, critical thinking and capacity for independent and self-managed learning;
* acquire familiarity with the latest developments and innovations in investment analysis;

Assessment Further Information

2 hour unseen final examination (100%) including a section closely related to “portfolio choice assignment.”

Portfolio choice assignment: To develop ability of applying the concepts and tools of investment analysis on real data, students are required to participate in portfolio choice assignment. Through the assignment, the students will learn: 1. where to find the needed information to conduct the analysis; 2.how to use spread sheet and statistical software to apply the obtained data for the analysis and evaluation. The assignment asks the students to choose stocks and to give weights to each stock to form a portfolio. The performance of portfolio itself does not affect the course grade. However, students must be ready to answer questions regarding the portfolio choice and its performance and be able to discuss about related issues and concepts in the final exam.


Recommended reading

Main Textbook (EBOOK access is available through MBS Library)

  • Main textbook: Bodie, Z., Kane, A., and Marcus, A., 2014, Investments , 10th edition, Global Edition, McGraw- Hill Irwin (henceforth BKM)
  • Supplement: Standard of Practice Handbook, 2010, 10th edition, CFA institute (henceforth SPH), see http://www.cfapubs.org/doi/pdf/10.2469/ccb.v2010.n2.1

Alternative coverage of the same basic material can be found in the following texts:

  • Edwin Elton, Martin Gruber, Stephen Brown and Williams Goetzmann (2014) Modern portfolio theory and investment analysis, 9th edition, John Wiley & Sons. [EGBG]



Feedback methods

As outlined in teaching method, this course includes 5 workshops aimed at providing immediate feedback on students’ understanding of the topics. You should prepare for these workshops, and use your performance on the workshop questions as an indicator of your progress in understanding the course material.

You can also obtain feedback through our virtual learning environment Blackboard. We provide a discussion board on which you can post questions related to the topics covered in class. We aim to respond to relevant student queries within one week. Please do not postpone your queries until right before the exam, as we might experience a high number of queries at that time.

In addition, we will provide students with the opportunity to provide (anonymous) written feedback on the course, once approximately halfway in the module, and once during the revision lecture at the end of the module. We will use this feedback to further improve the module in response to students’ comments.

Study hours

  • Assessment written exam - 3 hours
  • Lectures - 20 hours
  • Practical classes & workshops - 5 hours
  • Independent study hours - 72 hours

Teaching staff

Yoichi Otsubo - Unit coordinator

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