UCL School of Management

Module Fact Sheet

MSIN0021: Finance I: Investments

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This is a past version of this module for MSIN0021 18/19.
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Taught by
Level
Intermediate
Prerequisites
None
Eligibility
2nd year BSc/MSci Management Science
Terms
2
Delivery method
Two 2-hour lectures (x 4 weeks) and 2-hour seminar (x 4 weeks)
Assessment
90% unseen 3-hour examination; 10% individual coursework (two problem sets)
Previous Module Code
MSIN202P

Course overview

The path-breaking advances in finance theory and practice over the past decades have profoundly changed the financial world. These changes are further accelerated by the extensive globalization of financial markets and the rapid development in financial technologies in recent years. This course provides a rigorous introduction to the fundamentals of modern financial analysis and their applications to business challenges in basic security analysis, asset allocation and investment management.

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.

Learning outcomes

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.

Topics covered

  • Asset classes and financial instruments
  • Securities markets
  • Portfolio theory
  • CAPM
  • Bond prices and yields.
  • Equity valuation
  • Options markets
  • Futures markets and risk management

Assessment summary

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.

Essential reading

Essentials of Investments

Authors: Bodie, Kane, & Marcus

Publisher: McGraw-Hill Education; 10 edition (16 Feb. 2017)

ISBN-10: 1259255042

ISBN-13: 978-1259255045

Past versions of this module

MSIN0021 18/19

MSIN202P 17/18

MSIN202P 16/17

Last updated Monday, 24 June 2019