This unit covers topics on advanced investment theory with a focus on current academic and practitioner issues. The unit will build on the introduction to portfolio theory and asset pricing covered in Principles of Finance and provide an application for the quantitative skills covered in Quantitative Studies using Excel. As the world financial markets continue to be more integrated, students will review the potential benefits and risks associated with investments in a global environment. Other selected topics on passive and active portfolio management include index tracking, equity valuation, macro- and industry analysis, asset allocation and performance evaluation of managed funds. Finally the traditional investment finance assumptions on investor preferences and rationality will be re-examined with the introduction of behavioural finance.