Financial Security Valuation

Code

BUSI4412

School

Business

Level

4

Credits

10

Semesters

Spring UK

Summary

Equity, fixed income and derivative securities will be considered individually and portfolios. These will be presented as extensions of previously studied material as well as new topics. Among individual security classes topics will be:
•    Equities: Mean-variance efficient portfolios, CAPM, dividend discount valuation.
•    Fixed Income: Basic bond terminology and valuation, interest rate term structure and forward rates, duration, convexity and hedging.
•    Derivatives: Common Options, Real options
•    Principles of financial derivative valuation and analytic and numerical methods for valuation.

Target Students

Only available for students on MSc Accounting and Finance OR MSc Banking and Finance OR MSc Exchange students.

Classes

• One 2-hour lecture each week for 11 weeks

22 hours lecture, 48 hours exam preparation, 30 hours individual reading/study

Assessment

• 100% Take home exam (2-hour-30-minute): Take home exam. Reassessment of this module will be 100% exam.

Assessed by end of spring semester

Educational Aims

Learning Outcomes

Knowledge and understanding:

This module develops a knowledge and understanding of:
•    The dynamics of the global economy and international business &/or an awareness of cultural, legal/regulatory, political, and economic differences across countries &/or an appreciation of management issues from a global perspective.
•    Markets - the development and operation of markets for resources, goods and services
•    Customers and stakeholders - customer expectations, service and orientation
•    Finance - the sources, uses and management of finance
•    The use of accounting and other information systems for managerial applications
•    The management of resources
 

Intellectual Skills: 
This module develops:
•    Being able to think critically and be creative: manage the creative processes in self and others; organise thoughts, analyse, synthesise and critically appraise. This includes the capability to identify assumptions, evaluate statements in terms of evidence, detect false logic or reasoning, identify implicit values, define terms adequately and generalise appropriately
•    Being able to solve complex problems and make decisions: establish criteria, using appropriate decision-making techniques including identifying, formulating and solving business problems; and the ability to create, identify and evaluate options; the ability to implement and review decisions
•    Using information and knowledge effectively in order to abstract meaning from information and to share knowledge, including the use of quantitative skills
 

Professional Practical Skills: 
This module develops:
•    The ability to conduct research and enquiry into business and management issues either individually or as part of a team through research design, the collection and analysis of qualitative data, synthesis and reporting
•    The ability to recognise and address ethical dilemmas, corporate social responsibility and sustainability issues, applying ethical and organisational values to situations and choices

Conveners

• Dr Manish Gupta