Aims: To provide an introduction to finance theory, and its practical applications for investors, analysts and portfolio managers.
Learning Outcomes: On completing the module, students are expected to be able to:
㰾 · Demonstrate a good understanding of the pricing of the main financial assets traded in international financial markets.
㰾 · Apply finance theory to portfolio selection and asset pricing.
㰾 · Demonstrate an awareness of the implications of finance theory for best practice in investment strategy and portfolio management.
㰾 · Demonstrate a good understanding of the derivative and foreign exchange markets, including the roles of hedging, speculation and arbitrage.
㰾 · Critically evaluate empirical evidence concerning the operation of international financial markets. Module Content:
· An overview of financial markets and instruments.
· Hedging, speculation and arbitrage.
· Review of the concepts of risk and return. Portfolio theory and diversification.
· The capital asset pricing model and other asset pricing models.
· Efficient markets and portfolio management.
· Foreign exchange and derivatives markets. Forwards and futures contracts.
· Option characteristics and option pricing. Teaching Format: