| Module Code: ECO2049 |
Module Title: FINANCIAL ECONOMICS 1 |
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Module Provider: Economics
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Short Name: ECO2049
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Level: HE2
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Module Co-ordinator:
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Number of credits: 15
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Number of ECTS credits: 7.5
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| Module Availability |
| Autumn |
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| Assessment Pattern |
| Unit(s) of Assessment |
Weighting Towards Module
Mark (%)
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2 hour Examination
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70
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| Coursework 1 |
10
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| Coursework 2 |
20
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Qualifying Condition(s)
A weighted aggregated mark of 40% is required to pass the module |
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| Module Overview |
This module covers fundamental concepts in finance. We start with an introductory analysis of the role of financial markets in allocation resources and the determination of the interest rate (both real and nominal). We then consider the time value of money and derive present and future value formulas that will help us in pricing a range of finacial assets. next, we explore the characteristics and valuation of securities traded in the money and capital markets, such as certificates of deposit, treasury bills, bonds and stocks. Finally, we introduce the foreign exchange market and examine the derivative markets for options and futures |
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| Prerequisites/Co-requisites |
| None |
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| Module Aims |
| The aim of the module is to introduce a broad set of basic concepts and tools in modern finance |
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| Learning Outcomes |
On successful completion of this module you should be able to:-
- display an understanding of the basic workings of financial markets, including the money, capital, foreign exchange and financial derivatives markets
- apply valuation methods to a range of securities including stocks, bonds and financial options and futures contracts
Transferable Skills
- problem solving
- insights into financial modelling
- basic training in the operations of financial decision-making
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| Module Content |
The following is an indication of the likely topics to be covered:-
- the role of financial markets
- determining the interest rate
- time value of money: present and future values
- money market securities
- bonds and stocks
- foreign exchange markets
- derivative markets: futures and options
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| Methods of Teaching/Learning |
| Lectures (11) |
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| Selected Texts/Journals |
Blake,D. 2000, Financial Market Analysis, 2nd edition, Wiley
Additional resources:
Brigham E. F., and Houston F.F. 2009, Fundamentals of Financial Management, 12th edition, Thomson
Elton E.J., Gruber M.J., Brown S.J., and Goetzmann W.N., 2009, Modern Portfolio Theory and investment Analysis, 8th edition, Wiley
Damodaran, A. 2011, Applied Corporate Finance, 3rd edition, Wiley
Lumby, S., and Jones, C. 2003, Corporate Finance, Theory and Practice, 7th edition., Thompson |
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| Last Updated |
10 March 2011 |
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