REMF52-REMF52

Module Provider: Real Estate and Planning
Number of credits: 20 [10 ECTS credits]
Level:7
Terms in which taught: Spring term module
Pre-requisites:
Non-modular pre-requisites:
Co-requisites:
Modules excluded:
Current from: 2019/0

Module Convenor: Mr Pin-Te Lin

Email: pin-te.lin@henley.reading.ac.uk

Type of module:

Summary module description:

This module covers the theoretical and practical principles of asset allocation choices and portfolio management. After introducing the concept of diversification and single index model, different optimisation models are examined, along with specific features of real estate portfolios related to performance measurement and available vehicles to build such a portfolio. 


Aims:

This module enables students to develop their understanding of the concepts of investment strategy, portfolio selection and performance measurement and their application to real estate markets. It develops students’ analytic capacity. Students will have a detailed understanding of key theoretical concepts in investment strategy (e.g. efficient frontier, risk diversification, single index models) and their application in a real estate context. They will also be able to use statistical toolboxes for portfolio decision making, critically examine published work in the field, and apply this knowledge to the analysis of real estate investment decisions within a portfolio context. 


Assessable learning outcomes:

Upon completion of this module, students should be able to: 





  • identify, explain and apply key theoretical concepts of investment strategy, portfolio selection and performance measurement in financial and, more specifically, real estate markets; 




  • construct the mean-variance efficient frontier and identify the optimal risky portfolio for a given universe of risky assets; 




  • explain the pricing of assets using a CAPM; 




  • discuss relevant literature in international markets, including an ability to interpret and critically examine published results of empirical research in the field; 




  • understand portfolio optimisation models and issues related to their application using real estate data; 







  • analyse capital market data using quantitative techniques to identify theoretically optimal portfolio strategies and assess managers’ performances;




Additional outcomes:

In addition, students will: 





  • develop their business writing skills; 




  • develop their IT skills through the computer-based workshops; 




  • enhance their capacity to read complex published material in a critical fashion. 




Outline content:

The module will cover risk and return and investors’ investment preferences; models of portfolio selection and pricing (portfolio theory, efficient frontier, capital asset pricing model, portfolio optimisation models); the place of real estate in mixed asset class investment strategies; structuring the property portfolio through sector and geographical mix and/or through the use of indirect vehicles; performance measurement, attribution analysis and the analysis of manager performance; benchmarking and the measurement of real estate market activity. The module will draw on both academic and professional literature and utilise data and examples from international markets. 


Brief description of teaching and learning methods:

Contact hours:
  Autumn Spring Summer
Lectures 20
Tutorials 10
Guided independent study:      
    Wider reading (independent) 80 10
    Exam revision/preparation 40 20
    Preparation for tutorials 20
       
Total hours by term 0 170 30
       
Total hours for module 200

Summative Assessment Methods:
Method Percentage
Written exam 100

Summative assessment- Examinations:

The module will be assessed through a three-hour formal examination (100%). 



 


Summative assessment- Coursework and in-class tests:

Formative assessment methods:

Penalties for late submission:

Penalties for late submission on this module are in accordance with the University policy. Please refer to page 5 of the Postgraduate Guide to Assessment for further information: http://www.reading.ac.uk/internal/exams/student/exa-guidePG.aspx


Assessment requirements for a pass:

The pass mark for this module is 50%


Reassessment arrangements:

The re-assessment will be a three-hour exam (100%) for the entire module, subject to variation by the Examination Board where appropriate. 


Additional Costs (specified where applicable):

1. Required text books: About £50



2. Specialist equipment or materials: About £15 for a calculator (Casio FX-83GTPLUS or Casio FX-85GTPLUS) 


Last updated: 26 April 2019

THE INFORMATION CONTAINED IN THIS MODULE DESCRIPTION DOES NOT FORM ANY PART OF A STUDENT'S CONTRACT.

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