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Courses / Modules / MANG6142 Portfolio Theory and Asset Pricing

Portfolio Theory and Asset Pricing

When you'll study it
Semester 1
CATS points
15
ECTS points
7.5
Level
Level 7
Module lead
Bo Wang
Academic year
2025-26

Module overview

Portfolio Theory and Asset Pricing is designed to equip students with a profound understanding of the principles that govern investment decisions and the valuation of financial assets. The course delves into the core concepts of Modern Portfolio Theory (MPT), emphasizing the pivotal role of diversification, risk, and return in constructing optimal investment portfolios. Students will explore the intricate relationship between asset pricing models and portfolio management strategies. Emphasis is placed on the Capital Asset Pricing Model (CAPM) and the Arbitrage Pricing Theory (APT), providing a comprehensive framework for evaluating the risk and expected return of individual assets within a diversified portfolio. Practical applications and case studies will be employed to illustrate the real-world implications of these theories, fostering a hands-on approach to investment decision-making.