Dr Georgy Chabakauri

This course is available on the Global MSc in Management, MSc in Accounting and Finance, MSc in Applicable Mathematics, MSc in Econometrics and Mathematical Economics, MSc in Economics, MSc in Economics (2 Year Programme), MSc in Financial Mathematics, MSc in Real Estate Economics and Finance, MSc in Risk and Finance, MSc in Statistics (Financial Statistics), MSc in Statistics (Financial Statistics) (LSE and Fudan) and MSc in Statistics (Financial Statistics) (Research). This course is not available as an outside option.

Global MSc in Management (Accounting and Finance Concentration only)

This course is available with permission on the Diploma in Accounting and Finance with the approval of the Programme Director.

This course is available to other students from the Departments of Mathematics and Statistics where regulations permit.

This course cannot be combined with FM473 Financial Markets or FM474 Managerial Finance.

Outside students should consider the alternative option of FM473 Financial Markets or FM474 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.

This course 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.

J. Berk and P. DeMarzo, Corporate Finance, Pearson International Edition.

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, reading time: 10 minutes) in the summer 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.