The aim of this course is to discuss modern investment theory, its central concepts, and practical applications. The purpose is to show the application of finance theory in making portfolio management decisions, with some emphasis on individual portfolio decision-making.
Property investments and leverage in an individual portfolio will be examined. Alternative asset management strategies will be studied in detail including statistical arbitrage, pairs trading and merger arbitrage. Hedging tools and a detailed overview of the delta hedging of options will be covered. Finally, a description and overview of structured products, how they are created, valued, their typical end markets and how investors win or lose in these investments.
Applied portfolio management is one of several optional modules offered to postgraduate students by the School of Economics and Finance at Queen Mary University of London.