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Dr Cameron Peng

This course is compulsory on the BSc in Finance and BSc in Financial Mathematics and Statistics. This course is available on the BSc in Accounting and Finance, BSc in Actuarial Science, BSc in Data Science, BSc in Econometrics and Mathematical Economics, BSc in Economics, BSc in Management, BSc in Mathematics and Economics, BSc in Mathematics with Data Science, BSc in Mathematics with Economics and BSc in Mathematics, Statistics and Business. This course is not available as an outside option nor to General Course students.

This course cannot be combined with FM210. 

This course is not capped, any eligible student that requests a place will be given one.

Students must have completed (EC1A3 or EC1A5), (MA100 or MA108) and ST102.

Alternatively, students can access the course by completing (MA107 or MA108 or MA100), EC1A1, ST109 and EC1C1.

Students on the BSc in Management and the BSc in Accounting and Finance can only take this course if they:

1. have email permission from their Senior Undergraduate Tutor; and
2. have met the following programme-specific prerequisites: a 1st in MA107 or ST107, or at least 60 in MA108.

The course examines the theory of financial decision-making and examines the behaviour of the capital markets in which these decisions are taken. The topics covered are the theory of capital markets, portfolio theory, equity and bond markets, the capital asset pricing model, efficient markets, derivative pricing, sources of funds.

This course covers the same topics as FM210. Thus, both FM210 and FM214 are equivalent content-wise.  However, compared to FM210, this course puts more emphasis on the underlying statistical theory and relies more on the use of mathematical methods.

20 hours of lectures and 15 hours of classes in the AT.

Students are expected to produce written work for classes and to make positive contributions to class discussion.

Detailed course programmes and reading lists are distributed at the start of the course. Illustrative texts include: Principles of Corporate Finance by Richard Brealey, Stewart Myers, and Franklin Allen, McGraw-Hill Inc.

Exam (100%, duration: 1 hour and 30 minutes) in the January exam period.