¹û¶³´«Ã½

Introduction

Principal Aims

To equip students with an understanding of fundamental concepts in modern finance; to develop a range of appropriate analytical skills, including dynamic and theoretic methods; to develop in students the capacity to apply analytical techniques to real world problems.

Principal Learning Outcomes

Subject knowledge and understanding:…understand key concepts in finance and corporate finance and exchange rate determinations.

Subject knowledge and understanding:...demonstrate knowledge of asset pricing, corporate financial policy and governance.

Subject knowledge and understanding:...abstract and simplify basic economic problems through the application of simple theoretical methods.

Key skills:...communicate knowledge and understanding of economics in written and in elementary mathematical forms.

Key skills:...conduct individual and collaborative research into a finance topic, using world wide web and library resources.

Professional skills:...select and apply appropriate models and techniques to particular problems, especially those of a policy nature.

Cognitive skills:…analyse and formulate models for understanding and solving problems.

Cognitive skills:...analyse competing models and hypotheses in a critical way.

Professional skills:...produce concise and analytical reports relating to financial problems and issues.

Syllabus

Context

Optional Module

GL11 - Year 3, GL12 - Year 4, L100 - Year 3, L103 - Year 4, L116 - Year 3, L1P5 - Year 1, L1PA - Year 1, LM1D (LLD2) - Year 3, LM1H - Year 4, V7ML - Year 3, V7MM - Year 4, V7MP - Year 3, V7MR - Year 3, LA99 - Year 3, R9L1 - Year 4, R3L4 - Year 4, R4L1 - Year 4, R2L4 - Year 4, R1L4 - Year 4, L1L8 - Year 3, L1CC - Year 3, L1CD - Year 3

Pre or Co-requisites

The module will cover the most important models in modern finance (CAPM and option pricing) in a very rigorous manner. For that purpose, students must feel comfortable with the required mathematical tools. In particular, students must have a good command of linear algebra (matrices and vectors), maximization with and with without constraints and basic concepts in probability and statistics.

EC201-30 Macroeconomics 2 AND EC202-30 Microeconomics 2 OR

EC204-30 Economics 2 AND EC139-15 Mathematical Techniques A or EC140-15 Mathematical Techniques B

Summary:

Modules: (EC201-30 and EC202-30) and (EC204-30 and EC139-15) and (EC204-30 and EC140-15)

Restrictions

May not be combined with modules IB253-15

Assessment

Assessment Method

Centrally-timetabled examination (On-campus) (100%)

Coursework Details

Centrally-timetabled examination (On-campus) (100%)

Exam Timing

Summer

Reading Lists