FM310 Half Unit
Corporate Finance, Investments and Financial Markets I
This information is for the 2025/26 session.
Course Convenor
Dr Igor Makarov
Dr Georgy Chabakauri
Availability
This course is compulsory on the BSc in Accounting and Finance. This course is available on the BSc in Data Science, BSc in Econometrics and Mathematical Economics, BSc in Economics, BSc in Management, BSc in Mathematics, Statistics and Business, 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
Pre-requisites:
Before taking this course, students must have completed: (FM214 and FM215) or (FM210 and FM211)
Course content
This course is intended for third-year undergraduate students and serves as a continuation of Principles of Finance. Its primary objective is to broaden and deepen students’ understanding of finance by building on their foundational knowledge of financial economics. The course focuses on two major asset markets: fixed income and equities, introducing students to essential analytical tools and concepts relevant to these markets.
The first part of the course covers fixed income markets. Topics include the valuation of fixed income securities, theories of the term structure of interest rates, and interest rate risk management. The second part turns to equity markets, examining the Capital Asset Pricing Model (CAPM) and multifactor models of asset returns. This section also explores key empirical findings in behavioural finance. Finally, students learn how to measure the performance of portfolio managers and attribute it to different sources of skill.
Teaching
20 hours of lectures and 10 hours of classes in the Autumn Term.
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 textbooks include: Berk and DeMarzo, Corporate Finance, 5th Edition, Pearson International, and Bodie, Kane and Marcus, Investments, 12th Edition, McGraw Hill.
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 6
CEFR Level: Null
Total students 2024/25: 286
Average class size 2024/25: 19
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
- Specialist skills