FM439      Half Unit
Asset Markets for MSc Finance and Risk

This information is for the 2025/26 session.

Course Convenor

Cristina Scherrer

Availability

This course is compulsory on the MSc in Finance and Risk. 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.

Please contact finance.teachingmanager@lse.ac.uk with any queries.

This course does not permit auditing students.

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

30 hours of seminars in the Autumn Term.

This course is taught in the interactive lecturing format. There is no distinction between lectures and classes/seminars; there are “sessions” only, and the pedagogical approach in each session is interactive.

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

Continuous assessment (100%)


Key facts

Department: Finance

Course Study Period: Autumn Term

Unit value: Half unit

FHEQ Level: Level 7

CEFR Level: Null

Total students 2024/25: 66

Average class size 2024/25: 66

Controlled access 2024/25: No
Guidelines for interpreting course guide information

Course 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