Module overview
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: ECON2039 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 application of microeconomic principles and methods to the analysis of financial markets
- relevant asset pricing models such as the CAPM and APT
- efficiency in financial markets, with particular emphasis on the underlying information structure
- the central theoretical and practical concepts in financial economics
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
Transferable and Generic Skills
Having successfully completed this module you will be able to:
- Use quantitative reasoning in the context of financial decision-making
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.
| Type | Hours |
|---|---|
| Guided independent study | 10 |
| Teaching | 28 |
| Independent Study | 112 |
| Total study time | 150 |
Resources & Reading list
General Resources
Blackboard Material.
Assessment
Assessment strategy
Assessment on this module is through online formative assessment in the form of Problem Sets (Six Problem Sets worth 5% each, for a total of 30%) 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.
| Method | Percentage contribution |
|---|---|
| Final Assessment | 70% |
| Blackboard quizzes | 30% |
Referral
This is how we’ll assess you if you don’t meet the criteria to pass this module.
| 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.
| Method | Percentage contribution |
|---|---|
| Final Assessment | 100% |
Repeat Information
Repeat type: Internal & External