Capital Markets, Derivatives & Corporate Finance
- Course Code:
- 15PECC011
Term 1
The course aims to provide students with an advanced understanding of pure theories of finance, their empirical strengths in the light of applied econometric studies, and their application in the context of emerging markets and developing economies.
The course is organised around the concept of the pricing of risk. It gives a comprehensive analysis of:
- mean-variance portfolio theory, the capital asset pricing model and arbitrage pricing theory;
- the efficient markets hypothesis;
- debt-equity ratios, focusing on agency cost models and an introduction to contract theory; and
- analysis of options and other derivatives.
Qualification for entry
Objectives and learning outcomes of the course
Workload
Scope and syllabus
Timetable
Method of assessment
Assessment weighting: Exam 70% / coursework 30% (1 essay). All coursework is resubmittable.Required reading
- Copeland, T.E. & Weston, J.F., Financial Theory and Corporate Policy, Addison-Wesley, 1988.
- Edwards, F. & Ma, C., Futures and Options, McGraw Hill: New York, 1992.
- Elton, E. & Gruber, M.J., Modern Portfolio Theory and Investment Analysis, 5th edition, J. Wiley, New York, 1995.
