SEEM3590/ESTR3509 Investment Science

Course Code and Name: SEEM3590/ESTR3509 Investment Science
Course Objectives:

Extraordinary theoretical development, explosive growth of information and computing technology and global expansion of investment activities contribute to the recent development of a framework of scientific tools for investment: investment sciences. The course will emphasize fundamental principles in investment and illustrate how these principles can be transformed into sound and practical solutions of actual investment problems. More specifically, we demonstrate how engineering approaches are used to design financial products and solve investment problems.
Course Outcomes:

1. Understand the fundamental principles of investment science, especially the no-arbitrage argument
2. Understand the market structure and able to perform analysis, including fixed-income securities and term structure of interest rates
3. Able to use data to construct mathematical models for portfolio selection, able to solve some basic portfolio optimization problems, and able to derive financial implication to guide real practice
4. Able to understand the concept of market equilibrium and some basic pricing models as well as their investment implications
5. Able to understand the risk aversion principle and general principles for guiding portfolio selection.
6. Skilled in computer programming (EXCEL) to implement solutions to investment decision
Programme Outcomes:
(P1) The ability to apply knowledge of mathematics, science, and engineering appropriate to the degree discipline (K/S)
(P2) The ability to design and conduct experiments, as well as to analyze and interpret data (K/S)
(P3) The ability to design a system, component, or process to meet desired needs within realistic constraints, such as economic, environmental, social, political, ethical, health and safety, manufacturability and sustainability (K/S)
(P4) The ability to function in multi-disciplinary teams (S/V)
(P5) The ability to identify, formulate, and solve engineering problems (K/S)
(P6) The understanding of professional and ethical responsibility (V)
(P7) The ability to communicate effectively (S)
(P8) The ability to understand the impact of engineering solutions in a global and societal context, especially the importance of health, safety and environmental considerations to both workers and the general public (V)
(P9) The ability to recognize the need for, and to engage in life-long learning (V)
(P10) The ability to stay abreast of contemporary issues (S/V)
(P11) The ability to use the techniques, skills, and modern engineering tools necessary for engineering practice appropriate to the degree discipline (K/S)
(P12) The ability to use the computer/IT tools relevant to the discipline along with an understanding of their processes and limitations (K/S/V)
(P13) The ability to apply the skills relevant to the discipline of operations research and information technology and their applications in engineering and managerial decision making, especially in financial services, logistics and supply chain management, business information systems, and service engineering and management (K/S)

K = Knowledge outcomes
S = Skills outcomes
V = Values and attitude outcomes