Banking and Finance

The objective of this module is to provide students with a firm understanding of what the financial system does and how it is organised. It is designed to examine a broad series of topics, including what a financial instrument is and how it is valued; what a financial market is and how it works; what a financial institution is and how it operates. It equips students with the core principles of finance such as time has value, investors need to be compensated for taking risk and information is the basis for investment decision.

Objectives and learning outcomes of the module

Upon successful completion of this module a student will be able to:

• Comprehend core principles of finance and financial decision making process
• Understand valuation of financial assets and recognise the limitations of valuation models
• Know why and how companies issue different forms of securities
• Understand how the financial markets function and how securities are traded among investors
• Understand the risks involved in financial intermediation and how financial institutions operate
• Learn the statistical and mathematical concepts in optimal portfolio construction and compensation concept in capital asset pricing model

Pre-requisite(s)

155901494 Economic Principles (Macro)

155901495 Economic Principles (Micro)

155901502 Introductory Mathematics for Economists II

OR

Grade B or above in A-level Mathematics - those with grade C or below can consult the module convenor for academic approval.

Method of assessment

AS1 - 25% / AS2 - 25% / AS3 - 50%

Suggested reading

TBC

Disclaimer

Important notice regarding changes to programmes and modules