FM429      Half Unit
Asset Markets A

This information is for the 2016/17 session.

Teacher responsible

Dr Dong Lou


This course is available on the CEMS Exchange, IMEX Exchange, MSc in Accounting and Finance, MSc in Economics, MSc in Economics (2 Year Programme), MSc in Economics (Research), MSc in International Management, MSc in Law and Accounting, MSc in Management and Strategy, MSc in Real Estate Economics and Finance, MSc in Risk and Finance, MSc in Statistics (Financial Statistics), MSc in Statistics (Financial Statistics) (Research) and MiM Exchange. This course is available as an outside option to students on other programmes where regulations permit.


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

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.

Formative coursework

Weekly problem sets covered in classes.

Indicative reading

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.

Key facts

Department: Finance

Total students 2015/16: 53

Average class size 2015/16: 11

Controlled access 2015/16: Yes

Value: Half Unit

Guidelines for interpreting course guide information

Personal development skills

  • Problem solving
  • Application of numeracy skills
  • Commercial awareness
  • Specialist skills