IB235 - Finance 1: Financial Markets
- Module code: IB235
- Module name: Finance 1: Financial Markets
- Department: Warwick Business School
- Credit: 12
Content and teaching | Assessment | Availability
Module content and teaching
Principal aims
The modules aims to: introduce you to the workings of the financial markets; equip you with the knowledge to use quantitative tools for pricing stocks, bonds and derivatives, and for measuring risk and return; develop a sound understanding of the main theories and models for valuing financial market instruments; make you aware of key empirical tests of asset valuation models, and their implications; provide you with structured opportunities to practise using the key tools and techniques of Financial Markets theory; prepare you for advanced undergraduate and postgraduate studies in Finance.
Principal learning outcomes
By the end of the module you should be able to: describe how equity, bond and derivatives markets function, and their importance to both individual investors and corporate decision-makers; explain how these markets determine the prices of stocks, bonds and derivatives; define the different forms of market efficiency, and discuss the findings of empirical tests of the Efficient Markets Hypothesis; assess both theoretical and empirical relationships between risk and return; formulate different hypotheses for the term structure of interest rates; solve structured numerical problems; write informed critiques of key issues in asset valuation; analyse case studies and construct arguments to support a particular solution; construct spreadsheets to (a) determine the risk-return characteristics of portfolios of risky assets; and (b) price stocks, bonds and options; calculate the forward price of a traded asset using the no-arbitrage principle; price option contracts using the one-period binomial model; calculate spot and forward rates of interest, and use these to price bonds; explain key theoretical models and the assumptions that underpin them; interpret empirical evidence; solve numerical problems and analyse case-study information; communicate complex ideas effectively, both verbally and in writing; discuss topical issues about the theory and practice of financial markets; construct spreadsheets to value financial instruments and test the robustness of those values to changes in key inputs; explain and interpret financial market information and data from the financial press; use web-based resources to find and retrieve financial market data, and spreadsheets to process that data.
Timetabled teaching activities
2 x 1 hour lecture per week, 1 x 1 hour seminar per week
Departmental link
http://www.wbs.ac.uk/students/undergraduate/
Module assessment
Assessment group | Assessment name | Percentage |
---|---|---|
12 CATS (Module code: IB235-12) | ||
D (Assessed/examined work) | Class Test | 20% |
Fin1 Exam (Summer) | 80% | |
D1 (Assessed/examined work) | Class Test (Overflow paper) | 20% |
Fin1 Exam (Summer) (Overflow paper) | 80% |
Module availability
This module is available on the following courses:
Core
- Undergraduate Accounting and Finance (with Foundation Year) (N4N4) - Year 3
- Undergraduate Accounting and Finance (NN35) - Year 2
- Undergraduate Accounting and Finance (with Intercalated Year/Undergraduate Partnership Programme) (NN36) - Year 2
- Undergraduate Accounting and Finance (with Intercalated Year/Undergraduate Partnership Programme) (NN37) - Year 2
Optional Core
N/A
Optional
- Undergraduate Law and Business Studies (MN31) - Year 2
- Undergraduate Law and Business Studies (MN31) - Year 3
- Undergraduate Law and Business Studies (MN32) - Year 2
- Undergraduate Law and Business Studies (MN32) - Year 3
- Undergraduate Law and Business Studies (MN32) - Year 4
- Law and Business Four Year (Qualifying Degree) (MN34) - Year 2
- Law and Business Four Year (Qualifying Degree) (MN34) - Year 3
- Law and Business Four Year (Qualifying Degree) (MN34) - Year 4
- Undergraduate Law and Business Studies with Intercalated Year (3+1) (MN35) - Year 2
- Undergraduate Law and Business Studies with Intercalated Year (3+1) (MN35) - Year 3
- Undergraduate Law and Business Studies with Intercalated Year (3+1) (MN35) - Year 4
- Undergraduate Law and Business Studies with Intercalated Year (4+1) (MN36) - Year 2
- Undergraduate Law and Business Studies with Intercalated Year (4+1) (MN36) - Year 4
- Undergraduate Law and Business Studies with Intercalated Year (4+1) (MN36) - Year 5
- Undergraduate Law and Business Studies (Qualifying Degree) with Intercalated Year (MN37) - Year 2
- Undergraduate Law and Business Studies (Qualifying Degree) with Intercalated Year (MN37) - Year 4
- Undergraduate Law and Business Studies (Qualifying Degree) with Intercalated Year (MN37) - Year 5
- Undergraduate International Business (N140) - Year 2
- Undergraduate International Business (N140) - Year 4
- Undergraduate International Business with French (N1R1) - Year 2
- Undergraduate International Business with French (N1R1) - Year 4
- Undergraduate International Business with German (N1R2) - Year 2
- Undergraduate International Business with German (N1R2) - Year 4
- Undergraduate International Business with Italian (N1R3) - Year 2
- Undergraduate International Business with Italian (N1R3) - Year 4
- Undergraduate International Business with Spanish (N1R4) - Year 2
- Undergraduate International Business with Spanish (N1R4) - Year 4
- BSc in Management (N201) - Year 2
- BSc in Management (N201) - Year 3
- BSc in Management (with Intercalated Year/UPP) (N202) - Year 2
- BSc in Management (with Intercalated Year/UPP) (N202) - Year 4
- BSc in International Management (N203) - Year 2
- BSc in International Management (N203) - Year 4
- Undergraduate Management (with Foundation Year) (N20A) - Year 3
- BSc in Management (with Intercalated Year/UPP) (N210) - Year 2
- BSc in Management (with Intercalated Year/UPP) (N210) - Year 4
- Undergraduate Information Systems Management and Innovation (N211) - Year 3
- Undergraduate Information Systems Management and Innovation (with Intercalated Year) (N214) - Year 4
- BSc in Management (N230) - Year 2