ECON49810: Advanced Finance for Business (EBS)

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• ECON49710 Finance (EBS)

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• To build upon the material covered in the core module Finance, providing a rigorous training in the theory and application of modern finance at an advanced level.
• To familiarise students with empirical issues in finance, and the approaches to analysing corporate financial decisions within financial theory frameworks.
• To develop individual recommendations for a reasonably-chosen multi asset portfolio with regard to the specific investment context

• Properties of Equity Markets
• Historic returns, differentiating between various types of risks, and computing appropriate risk measures
• Portfolio Theory
• Determination of reasonable portfolios
• Equilibrium Pricing Models
• Relationship between expected return and relevant risk (CAPM)
• Multi-factor Pricing Models
• Smart-Beta Strategies (Arbitrage Pricing Theory)
• Economic reasons for abnormal returns o Behavioural Finance
• Properties of Bond Markets
• Market volume, trades products, typically used key rates
• Management of Bond Portfolios
• Risk management
• Trading strategies
• Derivatives Markets
• Financial Products
• Valuation of derivatives
• Application of options and futures
• Credit risk modelling
• Credit derivatives
• FX risks

Subject-specific Knowledge:

• Upon successful completion of the module, the students will have:
• an understanding of advanced financial theory from an international perspective;
• critical understanding of how lessons learned from the financial markets can be applied to the world of advanced multi-asset portfolio management from both the buy side and sell side perspective;
• advanced knowledge and critical understanding of essential components of modern finance theory and associated current research.

Subject-specific Skills:

• Upon successful completion of the module, students will:
• be able to use highly specialised and advanced technical, professional and academic research skills in the analysis of relevant specific problems in finance;
• be able to apply problem solving and analytical skills of research to issues in finance in a complex specialised context.

Key Skills:

• Written communication
• Planning, organising and time management
• Problem solving and analysis
• Using initiative
• Computer literacy

• Learning outcomes are met through classroom-based workshops, supported by online resources. The workshops consist of a combination of taught input, groupwork, case studies, spread sheet simulations/analyses and discussion. Online resources provide preparatory material for the workshops typically consisting of directed reading and video content.
• The formative assessment consists of classroom-based exercises involving individual and group analyses and presentations on specific business situations/problems relevant to the learning outcomes of the module.
• The summative assessment of the module, by written assignment enables the students to demonstrate the acquisition and articulation of knowledge and their ability to apply what they have learned to a selection of different financial contexts. The different areas covered in the written assignment will also encourage students to engage with and revise the whole module content, and encourage the development of a coherent, comprehensive understanding of the subject.

The formative assessment consists of classroom-based exercises and Excel-based simulations involving individual and group analyses on specific business situations/problems relevant to the learning outcomes of the module. Oral and written feedback will be given on a group and/or individual basis as appropriate.

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