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FM439      Half Unit
Asset Markets for MSc Finance and Risk

This information is for the 2024/25 session.

Teacher responsible

Dr Cristina Scherrer

Availability

This course is compulsory on the MSc in Finance and Risk. This course is not available as an outside option.

This course does not permit auditing students.

Pre-requisites

Students must be registered for Management and Regulation of Risk (FM403).

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 AT. 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 coursework

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

Total students 2023/24: 37

Average class size 2023/24: 38

Controlled access 2023/24: Yes

Value: Half Unit

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