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Academic Year: | 2014/5 |
Owning Department/School: | School of Management |
Credits: | 6 |
Level: | Intermediate (FHEQ level 5) |
Period: |
Semester 1 |
Assessment Summary: | EX 100% |
Assessment Detail: |
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Supplementary Assessment: |
Like-for-like reassessment (where allowed by programme regulations) |
Requisites: | In taking this unit you cannot take ES20070 or take MN20502 or take MN20600 and before taking this unit you must take MN10311. An aptitude with quantitative techniques is desirable. |
Description: | Aims: This module introduces students to the principal tools of economic analysis used in financial decision making. It introduces students to the key principles of discounted cash flows, theories of asset pricing, valuation of alternative financial instruments, and will provide students with a critical understanding of portfolio diversification and the methods of valuation. Learning Outcomes: At the end of this module students will be able to: 1. understand the theoretical basis of the time value of money and the calculation of present values 2. construct a diversified portfolio 3. critically evaluate the theory of efficient markets 4. value equity and fixed-income financial instruments 5. differentiate between different types of options 6. understand the principles of futures and forward contracts. Skills: Numerical facility with accounting and financial data, and identification/conversion to relevant economic data for decision-making. Content: Extensions & applications of present value model, optimality of NPV rule; security valuation: equities and bonds; risk, return and cost of capital; portfolio theory and diversification; asset pricing & CAPM; stock market efficiency; options; forwards and futures contracts. |
Programme availability: |
MN20026 is Compulsory on the following programmes:School of Management
MN20026 is Optional on the following programmes:School of Management
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