20509 Applied Portfolio Management6cp; Availability: C10226 Bachelor of Business (Shanghai University) students only
This subject provides students with an in-depth understanding of both the theoretical and the practical aspects of modern portfolio management. In terms of theory, students learn about the portfolio management process, the various asset classes at a fund manager's disposal, the role of diversification in portfolio management, the asset allocation and asset selection decisions, the use of financial derivatives in portfolio management and the fiduciary responsibilities of a fund manager. The practical aspects of the subject involve implementing and evaluating various asset price models for constructing efficient portfolios, implementing models for equity valuation, using the Black-Scholes option pricing formulae for portfolio insurance, and a substantial simulated portfolio management exercise, using historical price data.
Detailed subject description.