Students taking this module should expect to learn the nature and workings of financial markets and their use by corporations, investors and others. They will acquire skills in modern valuation techniques, including the pricing of fixed-income securities, equities, foreign exchange and derivatives. They will learn about the principles of finance, including arbitrage, market efficiency, asset pricing modelsm including CAPM, and portfolio theory. From the point of view of investors, individual as well as institutional, we will consider the principles of security valuation, portfolio selection and management, and risk control. By the end of the module, students should be acquainted with the key ideas of modern finance.
Upon successful completion of the module, a student will be able to:
- Understand how financial markets operate.
- Analyse equities and bonds.
- Undertake portfolio analysis.
- Price simple financial assets.
- Understand the various derivative instruments and their uses.
- Asset classes and financial instruments
- Securities markets
- Portfolio theory
- Bond prices and yields.
- Equity valuation
- Options markets
- Futures markets and risk management
90% assessed by exam and 10% individual coursework (two problem sets)
Current students should refer to Moodle for specific details of the current year’s assessment.
Essentials of Investments
Authors: Bodie, Kane, & Marcus
Publisher: McGraw-Hill Education; 10 edition (16 Feb. 2017)