Programmes

Financial Markets

  • Summer schools
  • Department of Finance
  • Application code SS-FM255
  • Starting 2019
  • Short course: Open
  • Location: Houghton Street, London

This course studies the theoretical and practical aspects of the financial markets. You will learn how modern financial markets work and acquire the toolkit necessary for the successful management of investment portfolios.

Course topics include diversification, asset allocation, portfolio optimization, the equilibrium relationship between risk and return, equity valuation, factor models, the active portfolio management industry, market efficiency, behavioural finance, market microstructure, the term structure of interest rates, bond markets, and the management of bond portfolios.


Session: Three
Dates: 29 July - 16 August 2019
Lecturers: Dr Thummim Cho and Dr Martin Oehmke


 

Programme details

Key facts

Level: 200 level. Read more information on levels in our FAQs

Fees:  Please see Fees and payments

Lectures: 36 hours 

Classes: 18 hours

Assessment*: One examination and one essay

Typical credit**: 3-4 credits (US) 7.5 ECTS points (EU)


*Assessment is optional

**You will need to check with your home institution

For more information on exams and credit, read Teaching and assessment

Prerequisites

Introductory Finance and elementary quantitative methods.

Programme structure

  • Time-Varying Expected Returns and Market Efficiency
  • Optimal portfolio selection (asset allocation and security selection)
  • Risk and return in Equilibrium: The CAPM
  • Empirical evidence on the capital asset pricing model
  • Performance of the C-CAPM, the equity premium and risk-free rate puzzles
  • Anomalies and trading strategies (size effect, value premium, momentum, reversal, Betting-Against-Beta)
  • Multi-factor models: APT and I-CAPM
  • Optimal investment strategy when privately informed
  • Active portfolio management, insurance, and immunisation
  • Organisation of financial markets and exchanges
  • Determinants of bid-ask spreads
  • Behavioural finance
  • Bond portfolio management and immunisation

Course outcomes

The course aims to provide a thorough understanding of both the mechanics and the operations of financial markets, whilst paying particular attention to the trading and evaluation of securities in equity and bond markets.

Teaching

LSE’s Department of Finance enjoys a pre-eminent reputation for the excellence of their teaching and research, and for their leading role in public-policy issues. The Department of Finance has grown in recent years to become one of the largest and most highly-regarded finance groups in the UK and Europe.

LSE’s Department of Finance is closely associated with LSE’s Financial Markets Group and Systemic Risk Centre which regularly hosts a wide variety of seminars, conferences and public addresses by leading academics and practitioners. The Department, along with the Departments of Accounting and Management, was ranked as the UK leader for Business and Management Studies in the 2014 Research Excellence Framework. The Department’s excellence in research and world-class faculty set them apart as global leaders in the field of finance.

On this three-week intensive programme, you will engage with and learn from full-time lecturers from the LSE’s finance faculty.

Reading materials

Z. Bodie, A. Kane, and A. J. Marcus, Investments (10th edition), McGraw-Hill (2013).

This textbook is supplemented by selected chapters from finance and investments textbooks, and relevant articles published in the finance literature

*A more detailed reading list will be supplied prior to the start of the programme

**Course content, faculty and dates may be subject to change without prior notice

Start your online application

Enquire now

Enquire now

  • Please enter a valid email address. We will send you relevant material regarding the LSE Summer School programme.
  • Which course subject area(s) would you like to know more about?
  • Your privacy
    Your right to privacy is important to us. The personal information that you submit in this form will be used to provide you with information about LSE Summer School news that may be of interest to you. Please visit lse.ac.uk/privacy to read our Privacy Policy and learn more about how we collect and use information about you so that you can make an informed choice about using our website.

How to Apply

Request a prospectus

  • Name
  • Address

Register your interest

  • Name

Speak to Admissions

Content to be supplied