Dr Dong Lou OLD M3.10

This course is available on the MSc in Accounting and Finance, MSc in Economics, MSc in Economics (2 Year Programme), MSc in Economics (Research), MSc in Management and Regulation of Risk, 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 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.

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 8 hours of seminars in the MT. 1 hour of seminars in the LT. 1 hour of lectures in the ST.

At least two pieces of classwork will be assessed.

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).