FM429 Half Unit
Asset Markets A
This information is for the 2025/26 session.
Course Convenor
Dr Linyan Zhu
Availability
This course is compulsory on the MSc in Accounting and Finance. This course is available on the Global MSc in Management, MSc in Econometrics and Mathematical Economics, MSc in Economics, MSc in Economics (2 Year Programme), MSc in Financial Mathematics, MSc in Mathematics and Computation, MSc in Real Estate Economics and Finance, MSc in Statistics (Financial Statistics) and MSc in Statistics (Financial Statistics) (Research). This course is not available as an outside option to students on other programmes. This course uses controlled access as part of the course selection process.
All students on a programme listed under the Course Availability will be given a place. This course is closed to outside students and does not permit auditing students. Outside students should consider the alternative option of FM473 Financial Markets or FM474 Managerial Finance.
Please contact finance.teachingmanager@lse.ac.uk with any queries.
Global MSc in Management (Accounting and Finance Concentration only)
This course is available to other students from the Departments of Mathematics and Statistics where regulations permit.
For students from other departments who meet the necessary criteria (if applicable), you are likely to be given a place, but this is not guaranteed. Chances of gaining a place on this course are increased if it is selected during initial course selection in the Autumn Term.
This course cannot be combined with FM473 Financial Markets or FM474 Managerial Finance.
Outside students should consider the alternative option of FM473 Financial Markets or FM474 Managerial Finance.
This course does not permit auditing students.
Requisites
Mutually exclusive courses:
This course cannot be taken with FM474A or FM473W or FM473A or FM474W at any time on the same degree programme.
Additional requisites:
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.
Course content
This course 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.
Teaching
10 hours of seminars and 20 hours of lectures in the Autumn Term.
Formative assessment
Weekly problem sets covered in classes.
Indicative reading
- J. Berk and P. DeMarzo, Corporate Finance, Pearson International Edition.
- 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.
Assessment
Exam (100%), duration: 90 Minutes, reading time: 10 minutes in the Spring exam period
Key facts
Department: Finance
Course Study Period: Autumn Term
Unit value: Half unit
FHEQ Level: Level 7
CEFR Level: Null
Total students 2024/25: 221
Average class size 2024/25: 24
Controlled access 2024/25: YesCourse 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