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| 2012/3 | |
| School of Management | |
| 6 | |
| Intermediate (FHEQ level 5) | |
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Semester 1 | |
| CW 25%, EX 75% | |
| Like-for-like reassessment (where allowed by programme regulations) | |
| Before taking this unit you must take MN10500 and in taking this unit you cannot take ES20070 or take MN10311 or take MN20211 or take MN20310 or take MN30380 | |
| Aims: This unit aims to introduce students to the principal tools of economic analysis used in financial decision making. The unit will provide students with a critical understanding of the key principles of discounted cash flows, theories of asset pricing, valuation of alternative financial instruments, portfolio diversification and methods of valuation. Learning Outcomes: At the end of this unit students will be able to: 1. understand the theoretical basis of the time value of money and the calculation of present values 2. construct a diversified portfolio 3. critically evaluate the theory of efficient markets 4. value equity and fixed-income financial instruments 5. differentiate between different types of options 6. understand the principles of futures and forward contracts. Skills: Numerical facility with accounting and financial data, and identification/conversion to relevant economic data for decision-making. Content: Extensions & applications of present value model, optimality of NPV rule; security valuation: equities and bonds; risk, return and cost of capital; portfolio theory and diversification; asset pricing & CAPM; stock market efficiency; options; forwards and futures contracts. | |
MN20502 is a Generally Available Unit which is available to all students of the University (subject to the usual constraints) to take either as a Director of Studies approved option within their programme of study or as an 'extra' unit which does not count towards a final award.
MN20502 is Optional on the following programmes:Department of Chemistry
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