Asset Pricing (P02122)

? Credit Points : 10 ? SCQF Level : 11 ? Acronym : MSE-P-AP

The aim of the module is to provide students with a good foundation in asset pricing, by using a blend of theoretical concepts, empirical evidence and some applications of the theory. The intention is for the students to increase their knowledge and understanding of modern finance theory. Within this context, the module covers the following topics: mean-variance analysis, the Capital Asset Pricing Model, the Arbitrage Pricing Theory, derivatives pricing; market microstructure with respect to Efficiency Market Hypothesis, security exchanges, asymmetric information and noise traders; behavioral finance and Individual portfolio choices.

Entry Requirements

? Pre-requisites : SGPE Postgraduates or Non Graduating Postgraduates Only.

Subject Areas

Home subject area

Economics, (Management School and Economics, Schedule H)

Delivery Information

? Normal year taken : Postgraduate

? Delivery Period : Block 4 only

? Contact Teaching Time : 3 hour(s) per week for 6 weeks

All of the following classes

Type	Day	Start	End	Area
Lecture	Friday	15:00	18:00	Central

Summary of Intended Learning Outcomes

Knowledge and understanding of:-
• the building blocks of modern financial economics, the application of economic principles and reasoning to the main asset pricing models and financial instruments.
• standard theory and empirical analysis of trading and market making on security exchanges.
• the relationship between behavioral finance and asset pricing, and the way in which individual portfolio choices and behaviour are driven by personal and market psychology.