This complete guide for FN3204: Investments and Portfolio Management at the University of London includes essential information on the final exam format, what to focus on, and the concepts most likely to be tested. You will also get final exam papers with solutions, step-by-step explanations, and final-exam hints and tips to help you revise faster and feel confident for the end-of-semester final. Use it as a quick reference during revision or to build your understanding topic by topic.

This course deepens students' knowledge of finance by exploring stock price behaviour, market efficiency, portfolio management, and international finance. It covers empirical asset pricing models, arbitrage pricing theory, and behavioural finance, allowing students to analyse market anomalies and assess portfolio performance. Key topics include CAPM, multifactor models, and event studies for testing market efficiency, providing a strong foundation in investment decision-making.

Students will critically evaluate asset valuation techniques, explore investment anomalies, and measure asset management performance. The course delves into behavioural finance theories, addressing market inefficiencies caused by investor psychology. Additionally, it introduces fixed-income portfolio management, active portfolio strategies, and performance evaluation techniques, such as Sharpe ratio and Jensen’s alpha, equipping students with essential analytical skills.

International finance concepts, including foreign exchange markets, interest rate risk, and global asset allocation, form a key part of the curriculum. Students will learn about international CAPM, risk hedging, and the impact of exchange rate fluctuations on investment decisions. By the end of the course, they will be able to apply investment theories and asset management strategies in both domestic and international financial markets.