Postgraduate Course: Financial Markets (MATH11065)
Course Outline
| School | School of Mathematics |
College | College of Science and Engineering |
| Credit level (Normal year taken) | SCQF Level 11 (Postgraduate) |
Availability | Not available to visiting students |
| SCQF Credits | 15 |
ECTS Credits | 7.5 |
| Summary | This course will introduce students to the way financial markets and institutions function in practice, with particular emphasis on equities and bonds. This will provide the context of underlying finance theory into which the mathematics will fit.
This course is delivered by Heriot Watt University and is only available to students on the MSc Financial Mathematics programme. |
| Course description |
I. Introduction to Financial Markets
Introduction.
Institutional investors.
Interest rate calculations.
Equities.
Portfolio Theory.
Efficient markets.
Market indices.
Portfolio performance measurement.
II. Bond Markets
Overview of fixed-income securities.
Bond mathematics.
Concepts of duration and convexity and use in portfolio management.
Term stucture of interest rates and alternative theories.
Index-linked securities.
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Entry Requirements (not applicable to Visiting Students)
| Pre-requisites |
|
Co-requisites | |
| Prohibited Combinations | |
Other requirements | MSc Financial Mathematics students only. |
Course Delivery Information
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| Academic year 2017/18, Not available to visiting students (SS1)
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Quota: None |
| Course Start |
Semester 1 |
Timetable |
Timetable |
| Learning and Teaching activities (Further Info) |
Total Hours:
150
(
Lecture Hours 22,
Summative Assessment Hours 2,
Programme Level Learning and Teaching Hours 3,
Directed Learning and Independent Learning Hours
123 )
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| Additional Information (Learning and Teaching) |
Examination takes place at Heriot-Watt University.
|
| Assessment (Further Info) |
Written Exam
80 %,
Coursework
20 %,
Practical Exam
0 %
|
| Additional Information (Assessment) |
See 'Breakdown of Assessment Methods' and 'Additional Notes' above. |
| Feedback |
Not entered |
| Exam Information |
| Exam Diet |
Paper Name |
Hours & Minutes |
|
| Main Exam Diet S1 (December) | Financial Markets (MATH11065) | 2:00 | |
Learning Outcomes
- know the principles of the valuation of shares and bonds;
- be able to apply certain analytical techniques regarding shares and bonds;- understand the sources of bond risk and the factors affecting bond prices;
- have the ability to critically evaluate the performance of an equity fund manager;
- understand the context within which market professionals work;
- have some familiarity with the main financial markets and instruments trades;
- have some familiarity with the investment industry;
- understand the role of the various institutions involved in financial markets;
- be able to write a coherent essay in a way which demonstrates that they have understood the material;
- demonstrate the ability to learn independently;
- manage time, work to deadlines and prioritise workloads;
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Reading List
Bodie, Z., Kane, A. & Marcus, A.J. (2009). Investments 8th Edition. McGraw-Hill.
Adams, A.T., Booth, P.M., Bowie, D.C. & Freeth, D.S. (2003). Investment Mathematics. Wiley.
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Additional Information
| Graduate Attributes and Skills |
Not entered |
| Keywords | FM |
Contacts
| Course organiser | Dr David Siska
Tel: (0131 6)51 9091
Email: D.Siska@ed.ac.uk |
Course secretary | Ms Hannah Burley
Tel: (0131 6)50 4885
Email: Hannah.Burley@ed.ac.uk |
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