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2011/2 Provisional Module Catalogue - UNDER CONSTRUCTION & SUBJECT TO CHANGE
 Module Code: ECO2049 Module Title: FINANCIAL ECONOMICS 1
Module Provider: Economics Short Name: ECO2049
Level: HE2 Module Co-ordinator:
Number of credits: 15 Number of ECTS credits: 7.5
 
Module Availability
Autumn
Assessment Pattern
Unit(s) of Assessment 

Weighting Towards Module 
Mark (%)

2 hour Examination

70

Coursework 1

10

Coursework 2

20


Qualifying Condition(s)
A weighted aggregated mark of 40% is required to pass the module
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

Prerequisites/Co-requisites
None
Module Aims
The aim of the module is to introduce a broad set of basic concepts and tools in modern finance
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
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
Methods of Teaching/Learning
Lectures (11)
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
Last Updated

10 March 2011