FM214 Half Unit
Principles of Finance I
This information is for the 2025/26 session.
Course Convenor
Dr Cameron Peng
Availability
This course is compulsory on the BSc in Finance and BSc in Financial Mathematics and Statistics. This course is available on the BSc in Accounting and Finance, BSc in Actuarial Science, BSc in Actuarial Science (with a Placement Year), BSc in Data Science, BSc in Econometrics and Mathematical Economics, BSc in Economics, BSc in Management, BSc in Mathematics and Economics, BSc in Mathematics with Data Science, BSc in Mathematics with Economics and BSc in Mathematics, Statistics and Business. This course is not available as an outside option to students on other programmes. This course is not available to General Course students.
This course is not capped, any eligible student that requests a place will be given one.
Requisites
Mutually exclusive courses:
This course cannot be taken with FM210 at any time on the same degree programme.
Pre-requisites:
Before taking this course, students must have completed: (ST102 and (MA100 or MA108) and (EC1A3 or EC1A5)) or ((MA107 or MA108 or MA100) and EC1A1 and ST109 and EC1C1)
Additional requisites:
Students on the BSc in Management and the BSc in Accounting and Finance can only take this course if they:
1. have email permission from their Senior Undergraduate Tutor; and
2. have met the following programme-specific prerequisites: a 1st in MA107 and ST107.
Course content
The course examines the theory of financial decision-making and examines the behaviour of the capital markets in which these decisions are taken. The topics covered are the theory of capital markets, portfolio theory, equity and bond markets, the capital asset pricing model, efficient markets, derivative pricing, sources of funds.
This course covers the same topics as FM210. Thus, both FM210 and FM214 are equivalent content-wise. However, compared to FM210, this course puts more emphasis on the underlying statistical theory and relies more on the use of mathematical methods.
Teaching
15 hours of classes and 20 hours of lectures in the Autumn Term.
Formative assessment
Students are expected to produce written work 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, and Franklin Allen, McGraw-Hill Inc.
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: 476
Average class size 2024/25: 26
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 information skills
- Application of numeracy skills
- Commercial awareness