Hong Kong Baptist University

School of Business

Programme: Bachelor of Business Administration

Department: Finance and Decision Sciences
Course Code: FINE3005 Level: III
Course Title: Investment Management
FINE2005 Financial Management or
Prerequisites:
FINE2007 Principles of Financial Management
Duration: 40 hours Units: 3 (3, 3, 0)
This course examines the investment environment in Hong Kong, the basic principles of
Course Description: valuation of financial assets, and the development of portfolio and capital market theories.
The purpose is to offer students guidance in the management of financial investments.
1. Alexander, G. J., Sharpe, W. F., & Bailey, J. V. (2001). Fundamentals of Investments (3rd ed.).
Upper Saddle River, NJ: Prentice Hall.
2. Bodie, Z., Kane, A., & Marcus, A. J. (2018). Investments (11th ed.). Boston: McGraw-
Hill/Irwin.
3. Haugen, R. A. (2000). Modern Investment Theory (5th ed.). Upper Saddle River, NJ: Prentice
Hall.
4. Reilly, F. K., & Norton, E. A. (2005). Investments (7th ed.). Mason, Ohio: Thomson/South-
Texts & References: Western.

(* recommended Relevant Websites:

textbook(s)) 1. Hong Kong Stock Exchange http://www.hkex.com.hk
2. Hong Kong Securities Institute: http://www.hksi.org
3. Securities and Futures Commission : http://www.hkfsc.org.hk
4. Institute of Financial Planners of Hong Kong : http://www.ifphk.org
5. Hong Kong Institute of Bankers : http://www.hkib.org
6. Hong Kong Institute of Investors : http://www.hkii.org
7. Quam Net : http://www.quamnet.com
Upon completion of this course, students should be able to:
1. Evaluate the investment environment of Hong Kong.
2. Understand the risk and return trade off.
Learning Outcomes:
3. Estimate the fair value of stock investment.
4. Apply portfolio theory and Capital Asset Pricing Model in asset valuation and
performance evaluation.
Learning Outcome Learning Outcome
addressed: addressed:
1 2 3 4 1 2 3 4
Lecture     Services Learning
Guest speakers Internship
Teaching & Learning Case Study Field study
Activities: Role playing Company visits
Student presentation    e-learning    
Project    Independent study
Simulation game   Others
Exercises and problems   

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 Case Study

Written examination

Learning Outcome addressed

Role Playing

Student Presentation

Oral examination
project/paper
Group

Simulation Game
Individual project/paper

Exercises & problems

Service learning

Internship

Field Study

Company visits
Major Assessment
Methods:
For each Major Assessment
Method below, please
indicate the specific
pedagogical /assessment
methods involved (by
putting a  in the relevant
box(es) on the right-hand
side).

Class Participation/
Discussion (20%)   1-,4

Assignment(s) (20%)   3,4

Test(s) (20%)  1-4

Examination (40%)  1-4

Others (please specify)

____________ ( %)
Course templates are available at BU eLearning (formerly called “BU Moodle”), programme
Course Web:
website and Staff Area in School website (for staff only).
Course Content: Hours Learning
Outcome
no.
I. Introduction 2 1
Basic concepts and the securities markets

II. Investment Environment of Hong Kong 3 1

A. The stock exchange of Hong Kong
B. The securities and futures commission
C. The stock indexes

III. Modern Portfolio Theory and Asset Pricing 13 2, 4

A. Portfolio diversification
B. Efficient frontier
C. Capital asset pricing model
D. Arbitrage pricing theory

IV. Security Analysis 12 3, 4

A. Fundamental analysis
B. Technical analysis
C. Market efficiency

V. Portfolio Management 10 2, 4
A. International investment environment
B. International diversification
C. Performance measurement
D. Selection, allocation and timing

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 E. Fiduciary duties and ethical issues

Total 40 hrs.
 to cultivate academic curiosity, integrity and leadership potential
Contribution to the  to enhance all-rounded training
 to develop consciousness of values and social responsibility
Mission of the
 to disseminate contemporary knowledge
School:  to disseminate the research findings of faculty members in the School
 to develop awareness in public policy
Learning Goals (LG) of BBA Programme

 LG1: Students will have the fundamental knowledge and skills required for managing a
business.
 LG2: Students will have an in-depth understanding of an area of specialization such as
accounting, economics, global and China business, finance, human resources
management, information systems management, and marketing
Contribution to the  LG3: Students will have the oral and written communication skills and information
technology skills necessary for working in a business environment.
Learning Goals of the  LG4: Students will be analytical and critical thinkers able to solve real-world business
Programme: problems.
LG5: Students will have a solid understanding of
 (a) how business is influenced by its environment, including economic, social-
cultural, legal-political, technological, and other general conditions, as well as
by an organization’s stakeholders;
 (b) the global nature of contemporary business; and
 (c) the value of business ethics and good corporate governance.
 LG6: Students will have a broad exposure to non-business disciplines.
Course Co-ordinator: Dr. Billy Mak

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