FM429 Half Unit
Asset Markets A
This information is for the 2020/21 session.
Teacher responsible
Dr Georgy Chabakauri
Availability
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.
Pre-requisites
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.
Course content
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.
Teaching
20 hours of lectures and 9 hours of seminars in the MT.
Formative coursework
Weekly problem sets covered in classes.
Indicative reading
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.
Assessment
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.
Important information in response to COVID-19
Please note that during 2020/21 academic year some variation to teaching and learning activities may be required to respond to changes in public health advice and/or to account for the situation of students in attendance on campus and those studying online during the early part of the academic year. For assessment, this may involve changes to mode of delivery and/or the format or weighting of assessments. Changes will only be made if required and students will be notified about any changes to teaching or assessment plans at the earliest opportunity.
Key facts
Department: Finance
Total students 2019/20: 39
Average class size 2019/20: 11
Controlled access 2019/20: Yes
Value: Half Unit
Personal development skills
- Problem solving
- Application of numeracy skills
- Commercial awareness
- Specialist skills
