|Owning Department/School:||School of Management|
|Level:||Intermediate (FHEQ level 5)|
|Assessment:||CW 25%, EX 75%|
|Supplementary Assessment:||Like-for-like reassessment (where allowed by programme regulations)|
|Requisites:||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|
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.
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.
Numerical facility with accounting and financial data, and identification/conversion to relevant economic data for decision-making.
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