Not available in 2017/18
FM305      Half Unit
Advanced Asset Markets

This information is for the 2017/18 session.

Teacher responsible

Prof Ian Martin


This course is compulsory on the BSc in Finance. This course is not available as an outside option nor to General Course students.

Course content

This course will cover the modern theories of asset valuation. Topics include the principle of no-arbitrage, martingales and state prices, valuation by arbitrage, option pricing and risk-neutral valuation, factor models and the arbitrage pricing theory, equilibrium pricing and capital asset pricing models, bond pricing and the term structure of interest rates.


20 hours of lectures and 10 hours of classes in the LT.

Formative coursework

Students will be expected to produce 10 problem sets in the LT.

Indicative reading

“Asset Pricing” by Cochrane.


Exam (100%, duration: 2 hours) in the main exam period.

Key facts

Department: Finance

Total students 2016/17: Unavailable

Average class size 2016/17: Unavailable

Capped 2016/17: No

Value: Half Unit

Guidelines for interpreting course guide information

PDAM skills

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