This module is a core course in the field of Financial Economics for students at level 6. It may also be taken by students from the Business and Economics fields.
The module introduces students to the contemporary workings of financial markets with emphasis on risk management. The module will cover some of the main topics of financial theory including economic risk, portfolio theory and the efficient markets hypothesis. It will also introduce students to the key instruments of derivatives markets, analyzing their trading mechanisms and established patterns. The module will further deal with advanced aspects of corporate finance and it will conclude by addressing the policy responses in the context of a contemporary world characterized by increasing financial instability. Core factual material is provided via Canvas with keynote lectures and selected worksheets used to explain concepts. The module provides the essential groundwork not only for the understanding of practical issues regarding financial markets and corporation management but also for a successful postgraduate studies.
On successful completion of the module, students will be able to:
The module is delivered by weekly workshops comprising of both lecture and seminar components. The lecture component of the workshops will discuss the key issues of each topic. Students can follow up with more detailed reading in their own time. Lecture components of workshops also lay the preparatory ground for the application of knowledge and expanded discussion with regard to practical issues in the seminar component of the workshops. Students will be given worksheets to prepare for the seminar component of the workshops. The worksheets are intended to assess students' understanding of the material covered in the workshops and also prepare them for the exams.
Definitive UNISTATS Category | Indicative Description | Hours |
---|---|---|
Scheduled learning and teaching | Workshop | 66 |
Student independent study | Student independent study | 234 |
Total (number of credits x 10) | 300 |
The final grade for this module is a weighted average of the marks for coursework and the final exam. There are two parts to the coursework which accounts for 50% of the overall mark. A class test will be given on the material taught during the first half of the course (25% of the total mark). The second element of coursework is group work. Each group will be required to submit a written report on topics taught during the second half of the semester (25% of the total mark). The final exam counts for 50% of the module grade.
The weekly question sheets are an important part of the self-assessment for this module. The most difficult questions will be gone through in the seminars and this will give students important feedback on their level of understanding and progress. On-going discussion via the module leader will assist the student in the development of strategies for improvement and enhancement.
Learning Outcome | Assessment Strategy |
---|---|
Have a fundamental understanding of economic risk and its relation to return | The class test and final exam assess understanding of risk and return. |
Be able to critically evaluate modern portfolio theory and the efficient market hypothesis | The final exam and weekly question sheets (formative) test critical understanding of these concepts. |
Have a comprehensive understanding of the mechanics and use of modern instruments of financial risk management | The final exam assesses understanding of modern financial instruments. |
Have a basic grasp of the design and implementation of complex strategies of hedging, speculation, and arbitrage | The question sheets (formative) and final exam assess mastery of complex strategies. |
Have a good understanding of financing decisions from the viewpoint of corporate management | The question sheets (formative), group work and final exam assess understanding of corporate financing decisions |
Be able to apply economic and financial theory to practical examples | Group work plays a central role in assessing the understanding of practical approaches to finance. |
Description of Assessment | Definitive UNISTATS Categories | Percentage |
---|---|---|
Coursework | Group Essay | 25 |
Practical Exam | Class test | 25 |
Written Exam | Two hour unseen examination | 50 |
Total (to equal 100%) | 100% |
It IS NOT a requirement that any element of assessment is passed separately in order to achieve an overall pass for the module.
Brealey, R. A., Myers, S. C., and Allen, F. (2011) Principles of Corporate Finance (10th Edition), New York: McGraw-Hill/Irwin.
Hull, J. C. (2011) Fundamentals of Futures and Options Markets (7th Edition), Pearson Education Limited.