ULMS Electronic Module Catalogue
The information contained in this module specification was correct at the time of publication but may be subject to change, either during the session because of unforeseen circumstances, or following review of the module at the end of the session. Queries about the module should be directed to the member of staff with responsibility for the module.
Title Security Analysis, Valuation and Investment
Code ACFI825
Coordinator Professor X Cai
Finance and Accounting
X.Cai7@liverpool.ac.uk
Year CATS Level Semester CATS Value
Session 2023-24 Level 7 FHEQ Second Semester 15

Pre-requisites before taking this module (other modules and/or general educational/academic requirements):
ACFI923 Portfolio Theory 

Modules for which this module is a pre-requisite:
 

Programme(s) (including Year of Study) to which this module is available on a required basis:
 

Programme(s) (including Year of Study) to which this module is available on an optional basis:
 

Teaching Schedule
  Lectures Seminars Tutorials Lab Practicals Fieldwork Placement Other TOTAL
Study Hours 20

 5

         25
Timetable (if known)              
Private Study 125
TOTAL HOURS 150

Assessment
EXAM Duration Timing
(Semester)		 % of
final
mark		 Resit/resubmission
opportunity		 Penalty for late
submission		 Notes
             
CONTINUOUS Duration Timing
(Semester)		 % of
final
mark		 Resit/resubmission
opportunity		 Penalty for late
submission		 Notes
Online module choice questionnaire. Standard UoL penalty applies for late submission. This is an anonymous assessment.  1    0       
Individual assignment. There is a resit opportunity. Standard UoL penalty applies for late submission. This is an anonymous assessment.  120    100       

Aims

Understand the essential characteristics of different asset classes;

Understand the theories underpinning the techniques of security analysis and valuation;

Applying security analysis technique in constructed examples and real world data;

Critically appraise investment strategy in the context of theory and practice.

Learning Outcomes

(LO1) A systematic understanding, knowledge and critical awareness of the nature of equity securities and current professional practice related to equity markets.

(LO2) The application and critical appraisal of fundamental analysis to the valuation of equity securities, including residuals analysis in complex scenarios.

(LO3) A conceptual understanding of the principles underlying the equity markets and equity security valuation, including hybrids at the forefront of current practice.

(LO4) A systematic understanding, knowledge and critical appraisal of professional practice related to fixed income securities.

(LO5) The application of knowledge and understanding of applied techniques and methods to analyse yields, risks and valuation for fixed income securities in an uncertain context.

(LO6) A conceptual understanding of the principles underlying the yields, risks and valuation of fixed income securities and the application of current valuation techniques.

(S1) Problem solving. Students will be required to develop problem solving skills in lectures and practical lab sessions.

(S2) Numeracy. Numeracy skills will be developed through the application of techniques taught in lectures to various real and artificial data sets.

(S3) Commercial awareness. Within interactive lecture environment and supported self learning.

(S4) Communication skills. Communication skills will be developed through the careful interpretation and guided discussion of results in practical sessions.

Teaching and Learning Strategies

2 hour lecture x 10 weeks
1 hour seminar x 5 weeks
125 hours self-directed learning

Syllabus
 

Part 1. Understanding the investment industry:

The investment environment (the industries);
Asset classes and financial instruments (the securities);
How securities are traded (the markets).

Part 2. Analyses:

Macroeconomics and industry analysis (macro);
Financial statement analysis (firm level).

Part 3. Equity valuation and investment:

Equity valuation models (discounted based);
Asset pricing models (rational or behavioural based);
Factor investing (investment strategies).

Part 4. Bond analysis and valuation and investment:

Bond price and yields (basic);
The term structure of interest rate (valuation).

Managing bond portfolio (investment)

Recommended Texts
Reading lists are managed at readinglists.liverpool.ac.uk. Click here to access the reading lists for this module.