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MN50319: Theory of financial decision making

[Page last updated: 05 August 2021]

Academic Year: 2021/2
Owning Department/School: School of Management
Credits: 6 [equivalent to 12 CATS credits]
Notional Study Hours: 120
Level: Masters UG & PG (FHEQ level 7)
Semester 1
Assessment Summary: EX 100%
Assessment Detail:
  • Examination (EX 100%)
Supplementary Assessment:
Like-for-like reassessment (where allowed by programme regulations)
Aims: This unit is designed to provide students with fundamentals of financial decision-making theory and corporate policy.

Learning Outcomes: At the end of the unit students will be expected to:
(a) calculate and assess appropriate investment appraisal criteria in a multi-period framework.
(b) understand theories of investors' behaviour under uncertainty.
(c) use and critically evaluate various techniques of asset pricing.

Skills: 1. Numeracy (T/A).
2. Problem-solving (F/A)
3. Critical Thinking (F/A)
4. Time management (F/A).
5. Writing skills (A).
6. Use of IT (F).

Content: Consumption and Investment Decision-making, Theory of Choice under Uncertainty; Real Options; Investment Appraisal; Mean-Variance Theory; Capital Market Equilibrium; Cost of Capital; Basics of Derivatives and Hedging.

Programme availability:

MN50319 is Compulsory on the following programmes:

School of Management


  • This unit catalogue is applicable for the 2021/22 academic year only. Students continuing their studies into 2022/23 and beyond should not assume that this unit will be available in future years in the format displayed here for 2021/22.
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