Principles of Finance | ECON3015 | University of Southampton

Module overview

Specifically the module aims to provide a bridge to the more theoretical articles in finance theory, by offering a simple framework of conceptual knowledge that enables thinking while making financial decisions. As such the module gives an appreciation of the scope of the whole disciplines' subject matter and lays the foundations for more specialized courses that have a narrower focus.

Linked modules

Prerequisites: ECON2003 OR MATH2040 OR MANG2004

Aims and Objectives

Learning Outcomes

Knowledge and Understanding

Having successfully completed this module, you will be able to demonstrate knowledge and understanding of:

the central theoretical and practical concepts in financial economics
relevant asset pricing models such as the CAPM and APT
the application of microeconomic principles and methods to the analysis of financial markets
efficiency in financial markets, with particular emphasis on the underlying information structure

Transferable and Generic Skills

Having successfully completed this module you will be able to:

Use quantitative reasoning in the context of financial decision-making

Subject Specific Intellectual and Research Skills

Having successfully completed this module you will be able to:

use formal logic to solve models of consumption and investment decisions in financial markets;
use asset pricing models for optimal portfolio choice, recognising what needs to be taken as given for modelling individual choice among financial assets

Syllabus

The module provides a comprehensive introduction to the theory associated with equilibrium asset pricing models.

Learning and Teaching

Teaching and learning methods

Lectures and tutorials.

Study time
Type	Hours
Teaching	28
Independent Study	122
Total study time	150

Resources & Reading list

General Resources

Lecture notes in priniciples of finance.

Assessment

Assessment strategy

Assessment on this module is through online quizzes (worth 15% of the final mark) and an online assignment (15%) during the semester, and an end of module examination (70%). This is supported by various pieces of formative assessment throughout the semester. This is the same for internal repeat. Assessment for external repeat and referral is through 100% end of module examination.

Summative

This is how we’ll formally assess what you have learned in this module.

Breakdown
Method	Percentage contribution
Final Assessment	70%
Quizzes	15%
Online test	15%

Referral

This is how we’ll assess you if you don’t meet the criteria to pass this module.

Breakdown
Method	Percentage contribution
Final Assessment	100%

Repeat

An internal repeat is where you take all of your modules again, including any you passed. An external repeat is where you only re-take the modules you failed.

Breakdown
Method	Percentage contribution
Final Assessment	100%

Repeat Information

Repeat type: Internal & External