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: ECON2006 OR ECON2026
Aims and Objectives
Learning Outcomes
Learning Outcomes
Having successfully completed this module you will be able to:
- Simulate popular investment strategies and assess whether you can make money out of them
- Conduct event studies for assessing the impact of events on stock prices
- Stock prices and returns behave and whether they are forecastable
- Construct simple models to assess whether a stock price is over or undervalued
- Demonstrate knowledge and understanding of the tradeoffs between stock market risk and return and explore various ways of quantifying risk
Syllabus
: This course confronts economic theories (e.g. efficient markets, CAPM) about stock prices and returns with real world financial data. The first part of the course deals with how prices and returns should behave in an efficient market and introduces statistical techniques to assess whether such behavior is supported by the data. The second part of the course looks at departures from the efficient markets framework by introducing various popular investment strategies used by fund management companies as well as techniques used to assess whether it is possible to beat the market by following such strategies. At the end of the course students should also become well versed in the overall characteristics of equity markets and modern fund management practices.
Learning and Teaching
Teaching and learning methods
Lectures and Masterclass
| Type | Hours |
|---|---|
| Teaching | 28 |
| Independent Study | 122 |
| Total study time | 150 |
Assessment
Assessment strategy
Assessment in this module is through coursework in form of problem sets (each worth 5% of the final mark), continuous successful participation in class activities such as online tests, quizzes, etc. (5%), and a comprehensive problem set at the end of the semester (85%).
Summative
This is how we’ll formally assess what you have learned in this module.
| Method | Percentage contribution |
|---|---|
| Coursework | 5% |
| Assignment | 85% |
| Participation | 5% |
| Coursework | 5% |
Referral
This is how we’ll assess you if you don’t meet the criteria to pass this module.
| Method | Percentage contribution |
|---|---|
| Assignment | 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 |
|---|---|
| Assignment | 100% |
Repeat Information
Repeat type: Internal & External