Module overview
This module will provide students with a solid understanding of key concepts, tools and insights of financial economics. Upon completion, students should be confident in using standard techniques to address issues like the functions and functioning of financial markets, and their efficiency properties, as well as be able to deal with standard application of financial theory to equity and bond pricing.
Aims and Objectives
Learning Outcomes
Transferable and Generic Skills
Having successfully completed this module you will be able to:
- relate analytical reasoning to quantitative data analysis
- communicate analytical reasoning in written form
Knowledge and Understanding
Having successfully completed this module, you will be able to demonstrate knowledge and understanding of:
- intemporal choice and choice under risk
- the key concepts and methods in financial economics
Subject Specific Intellectual and Research Skills
Having successfully completed this module you will be able to:
- critically assess current questions and debates in finance through the lense of financial economics and its methods.
- apply theoretical methods to derive predictions on market outcomes, such as asset prices.
Syllabus
This module famliarises students with the fundamental concepts, insights and methods in financial economics. Taught topics will cover decision making under uncertainty, net present value and intertemporal choice, portfolio selection (mean-variance model and CAPM), arbitrage and factor models, as well as market efficiency, bubbles and crashes.
Learning and Teaching
Teaching and learning methods
Lectures and masterclasses.
| Type | Hours |
|---|---|
| Teaching | 25 |
| Independent Study | 125 |
| Total study time | 150 |
Resources & Reading list
Textbooks
Danthine, I.P and Donaldson J.B.. Intermediate Financial Theory. Academic Press, Elsevier.
Bailey, R.E. (2014). The Economics of Financial Markets. Cambridge University Press.
Assessment
Assessment strategy
Assessment is through one coursework assignment during the semester (worth 20% of the final mark) and an end of module written examination (80%). This is supported by continuous formative assessment in form of problem sets. This is the same for internal repeat. Assessment for external repeat and referral is through 100% end of module written examination.
Summative
This is how we’ll formally assess what you have learned in this module.
| Method | Percentage contribution |
|---|---|
| Coursework | 20% |
| Final Exam | 80% |
Referral
This is how we’ll assess you if you don’t meet the criteria to pass this module.
| Method | Percentage contribution |
|---|---|
| Final Exam | 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 Exam | 100% |
Repeat Information
Repeat type: Internal & External