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Description
The aim of this course is to provide a comprehensive introduction to the modern theory of finance. The module will describe the functioning of the main asset markets, themost important theories explaining the formulation of prices of financial assets and the role of financial markets in the optimal allocation of risk bearing. Students will develop an understanding of the economics and characteristics of the main financial assets. On successful completion of the module, students should be familiar with the basic principles and concepts in finance, including: Decisions under risk; Equilibrium asset pricing and absence of arbitrage; Optimal portfolio selection and Factor Pricing Models; Introduction to Derivatives and Corporate Finance.
Suitable for: 2nd year BSc (Econ) Economics (L100, L101 and L102) students. Can also be taken by BSc Economics and Geography (LL17); BA Philosophy and Economics (VL51), BSc Philosophy, Politics and Economics (4V86), BSc Economics and Statistics (LG13), BSc Statistics, Economics and Finance (GLN0) and BSc / MSci Mathematics with Economics (G1L1/G1LC) students.
Prerequisites: Students should have taken ECON0002: Economics, ECON0010: Introduction to Maths for Economists and ECON0005: Statistical Methods for Economists, maths and statistics if studying in a programme from another department.
Assumed knowledge: This module requires some knowledge of calculus, and students should be familiar with the concepts of marginal utility, marginal rates of substitution, computation of the competitive equilibrium in a static barter economy and welfare analysis.
Module deliveries for 2024/25 academic year
Last updated
This module description was last updated on 8th April 2024.
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