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Unit information: Asset Markets in 2021/22

Unit name Asset Markets
Unit code EFIM20043
Credit points 20
Level of study I/5
Teaching block(s) Teaching Block 1 (weeks 1 - 12)
Unit director Dr. Cui
Open unit status Not open
Pre-requisites

Financial Markets, Institutions and Instruments

Risk and Return

Mathematics for Economics

Probability, Statistics and Econometrics

Co-requisites

NONE

School/department School of Accounting and Finance
Faculty Faculty of Social Sciences and Law

Description including Unit Aims

This unit aims to equip students with the fundamental concepts and tools underlying the asset pricing (as opposed to Corporate Finance) side of modern finance.

The unit covers asset markets and valuation. The valuation of fixed-income securities is studied first, followed by the valuation of stocks and then derivatives such as futures and options. Concepts emphasized include the present-value formula, valuation by arbitrage, portfolio theory, the CAPM, market efficiency, the uses of derivatives in hedging and speculation and binomial and Black-Scholes models of option valuation.

To assess all learning outcomes, the exam paper will combine conceptual and numerical questions. Parts of it will be entirely discursive, requiring argumentation and persuasion based on theory and evidence. Other sections will require mathematical derivations and graphical illustration. All numerical results will require discussion and interpretation.

Intended Learning Outcomes

Students will be able to:

  1. Demonstrate knowledge of the major theoretical tools and theories of asset pricing and their relevance to practical investment problems
  2. Explain the factors influencing the investment behaviour and opportunities of investors
  3. Show understanding of derivative assets and their uses
  4. Show a capacity for independent and self-managed learning
  5. Demonstrate problem-solving skills
  6. Analyse and identify the components of a problem.

Teaching Information

22 hours lectures

10 hours small group classes

Formative assessment

Students will be asked to prepare material for small group classes, some of which will be collected and marked with feedback provided.

Assessment Information

Summative assessment

2.5 hour closed book examination. This assesses all learning outcomes.

Resources

If this unit has a Resource List, you will normally find a link to it in the Blackboard area for the unit. Sometimes there will be a separate link for each weekly topic.

If you are unable to access a list through Blackboard, you can also find it via the Resource Lists homepage. Search for the list by the unit name or code (e.g. EFIM20043).

How much time the unit requires
Each credit equates to 10 hours of total student input. For example a 20 credit unit will take you 200 hours of study to complete. Your total learning time is made up of contact time, directed learning tasks, independent learning and assessment activity.

See the Faculty workload statement relating to this unit for more information.

Assessment
The Board of Examiners will consider all cases where students have failed or not completed the assessments required for credit. The Board considers each student's outcomes across all the units which contribute to each year's programme of study. If you have self-certificated your absence from an assessment, you will normally be required to complete it the next time it runs (this is usually in the next assessment period).
The Board of Examiners will take into account any extenuating circumstances and operates within the Regulations and Code of Practice for Taught Programmes.

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