FM210 Half Unit
Principles of Finance I
This information is for the 2025/26 session.
Course Convenor
Dr James Clark
Availability
This course is available on the BSc in Accounting and Finance, BSc in Economic History, BSc in International Social and Public Policy with Economics, BSc in Management, Diploma in Accounting and Finance, Erasmus Reciprocal Programme of Study and Exchange Programme for Students from University of California, Berkeley. This course is freely available as an outside option to students on other programmes where regulations permit. It does not require permission. This course is available with permission to General Course students.
Permission forms from the General Course admin office should be submitted to the Department of Finance by email at finance.ug@lse.ac.uk with a copy of the transcript attached.
Requisites
Mutually exclusive courses:
This course cannot be taken with FM214 at any time on the same degree programme.
Additional requisites:
Students must have completed: one level 1 Economics course, one level 1 Mathematics course and one level 1 Statistics course.
Course content
The course examines the theory of financial decision-making by investors and examines the behaviour of the capital markets in which these decisions are taken. The main topics covered are the theory of capital markets, portfolio theory, equity and bond markets, the capital asset pricing model, efficient markets, and derivative pricing.
This course covers the same topics as FM214. Thus, both FM210 and FM214 are equivalent content-wise. However, compared to FM214, this course puts less emphasis on the underlying statistical theory and relies less on the use of mathematical methods. Nonetheless, the course is quantitative in nature, and familiarity with mathematical and statistical methods taught in first-year courses will be assumed.
Teaching
10 hours of classes and 20 hours of lectures in the Autumn Term.
There will also be workshops in AT.
Formative assessment
Students are expected to complete weekly problem sets for classes and to make positive contributions to class discussion.
Indicative reading
Detailed course programmes and reading lists are distributed at the start of the course. Illustrative texts include:
- Principles of Corporate Finance by Richard Brealey, Stewart Myers, Franklin Allen, and Alex Edmans, McGraw-Hill Inc.
- Corporate Finance by Jonathan Berk and Peter DeMarzo, Pearson Global Edition.
Assessment
Exam (90%), duration: 90 Minutes in the January exam period
Continuous assessment (10%)
Key facts
Department: Finance
Course Study Period: Autumn Term
Unit value: Half unit
FHEQ Level: Level 5
CEFR Level: Null
Total students 2024/25: 354
Average class size 2024/25: 16
Capped 2024/25: NoCourse selection videos
Some departments have produced short videos to introduce their courses. Please refer to the course selection videos index page for further information.
Personal development skills
- Problem solving
- Application of numeracy skills
- Commercial awareness