Dr Georgy Chabakauri

This course is available on the CEMS Exchange, Global MSc in Management, Global MSc in Management (CEMS MIM), Global MSc in Management (MBA Exchange), MBA Exchange, MSc in Accounting and Finance, MSc in Econometrics and Mathematical Economics, MSc in Economics, MSc in Economics (2 Year Programme), MSc in Management and Strategy, MSc in Real Estate Economics and Finance, MSc in Risk and Finance, MSc in Statistics (Financial Statistics) and MSc in Statistics (Financial Statistics) (Research). This course is available with permission as an outside option to students on other programmes where regulations permit.

Outside students should consider the alternative option of FM473M/FM474L Finance I or FM474L/FM474M Managerial Finance.

This course cannot be combined with FM473M Finance I or FM474M/FM474L Managerial Finance.

Basic Mathematics and Statistics knowledge. The course is self-contained but it covers a broad set of topics. Some prior knowledge of economics, finance and accounting is advised.

Aims to equip students with the fundamental concepts and tools underlying the asset markets side of modern finance. The course covers asset markets and valuation. The valuation of fixed-income securities is covered first, followed by the valuation of stocks, and derivatives such as futures and options. Concepts emphasized include the present-value formula, valuation by arbitrage, portfolio theory, the CAPM, market efficiency, and binomial and Black-Scholes models.

20 hours of lectures and 9 hours of seminars in the MT.

Weekly problem sets covered in classes.

Z Bodie, A Kane and A Marcus, Investments, 8th edition, McGraw Hill. ISBN: 0-07-338237-X.

Full details of reading will be specified in the Course Programme and Reading List which will be distributed at the first lecture.

Exam (100%, duration: 1 hour and 30 minutes) in the main exam period.

Please note this exam is the half unit version of the examination taken on FM430 Corporate Finance and Asset Markets. Any student who takes both FM429 and FM431 will be re-registered to sit the FM430 full-unit exam paper in Summer Term.