Principal Aims

Principal Learning Outcomes

Subject knowledge and understanding:…understand key concepts in finance and corporate finance and exchange rate determinations. The teaching and learning methods that enable students to achieve this learning outcome are: Lectures, independent study, background reading. The summative assessment methods that measure the achievement of this learning outcome are: Final examination.

Subject knowledge and understanding:...demonstrate knowledge of asset pricing, corporate financial policy and governance. The teaching and learning methods that enable students to achieve this learning outcome are: Lectures, independent study, background reading. The summative assessment methods that measure the achievement of this learning outcome are: Final examination.

Subject knowledge and understanding:...abstract and simplify basic economic problems through the application of simple theoretical methods. The teaching and learning methods that enable students to achieve this learning outcome are: Lectures, independent study, background reading. The summative assessment methods that measure the achievement of this learning outcome are: Final examination.

Key skills:...communicate knowledge and understanding of economics in written and in elementary mathematical forms. The teaching and learning methods that enable students to achieve this learning outcome are: Lectures, independent study, background reading. The summative assessment methods that measure the achievement of this learning outcome are: Final examination.

Key skills:...conduct individual and collaborative research into a finance topic, using world wide web and library resources. The teaching and learning methods that enable students to achieve this learning outcome are: Lectures, independent study, background reading. The summative assessment methods that measure the achievement of this learning outcome are: Final examination.

Professional skills:...select and apply appropriate models and techniques to particular problems, especially those of a policy nature.

Cognitive skills:…analyse and formulate models for understanding and solving problems. The teaching and learning methods that enable students to achieve this learning outcome are: Lectures, independent study, background reading. The summative assessment methods that measure the achievement of this learning outcome are: Final examination.

Cognitive skills:...analyse competing models and hypotheses in a critical way. The teaching and learning methods that enable students to achieve this learning outcome are: Lectures, independent study, background reading. The summative assessment methods that measure the achievement of this learning outcome are: Final examination.

Professional skills:...produce concise and analytical reports relating to financial problems and issues. The teaching and learning methods that enable students to achieve this learning outcome are: Lectures, independent study, background reading. The summative assessment methods that measure the achievement of this learning outcome are: Final examination.

Syllabus

Context

Optional Module

GL11 - Year 3, GL12 - Year 4, L1P5 - Year 1, L1PA - Year 1, LM1D (LLD2) - Year 3, LM1D (LLD2) - Year 4, V7ML - Year 3, V7MM - Year 4, LA99 - Year 3, R9L1 - Year 4, R3L4 - Year 4, R4L1 - Year 4, R2L4 - Year 4, R1L4 - Year 4, L1L8 - Year 3, L1CA - Year 3, L1CA - Year 4

Pre or Co-requisites

The module will cover the most important models in modern finance (CAPM and option pricing) in a very rigorous manner. For that purpose, students must feel comfortable with the required mathematical tools. In particular, students must have a good command of linear algebra (matrices and vectors), maximization with and with without constraints and basic concepts in probability and statistics.

EC201-30 Macroeconomics 2 AND EC202-30 Microeconomics 2 OR

EC204-30 Economics 2 AND EC139-15 Mathematical Techniques A or EC140-15 Mathematical Techniques B

Summary:

Modules: (EC201-30 and EC202-30) and (EC204-30 and EC139-15) and (EC204-30 and EC140-15)

Restrictions

May not be combined with modules IB253-15

Assessment

Assessment Method

In-person Examination (100%)

Coursework Details

In-person Examination (100%)

Exam Timing

Summer

Exam Rubric

Time Allowed: 2 Hours

Read all instructions carefully - and read through the entire paper at least once before you start entering your answers.

There are TWO sections in this paper. Answer ONE question in Section A (50 marks) and ONE question in Section B (50 marks).

Answer each whole question in a separate booklet.

Approved scientific (non-graphical) pocket calculators are allowed. A formula sheet is provided.

You should not submit answers to more than the required number of questions. If you do, we will mark the questions in the order that they appear, up to the required number of questions in each section.

Previous exam papers can be found in the University’s past papers archive. Please note that previous exam papers may not have operated under the same exam rubric or assessment weightings as those for the current academic year. The content of past papers may also be different.

Reading Lists