Postgraduate Course: Financial Markets (MATH11065)
|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
|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.
I. Introduction to Financial Markets
Interest rate calculations.
Portfolio performance measurement.
II. Bond Markets
Overview of fixed-income securities.
Concepts of duration and convexity and use in portfolio management.
Term stucture of interest rates and alternative theories.
Entry Requirements (not applicable to Visiting Students)
||Other requirements|| MSc Financial Mathematics students only.
Course Delivery Information
|Academic year 2017/18, Not available to visiting students (SS1)
|Learning and Teaching activities (Further Info)
Lecture Hours 22,
Summative Assessment Hours 2,
Programme Level Learning and Teaching Hours 3,
Directed Learning and Independent Learning Hours
|Additional Information (Learning and Teaching)
Examination takes place at Heriot-Watt University.
|Assessment (Further Info)
|Additional Information (Assessment)
||See 'Breakdown of Assessment Methods' and 'Additional Notes' above.
||Hours & Minutes
|Main Exam Diet S1 (December)||Financial Markets (MATH11065) ||2:00|
| - 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;
|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.
|Graduate Attributes and Skills
|Course organiser||Dr David Siska
Tel: (0131 6)51 9091
|Course secretary||Ms Hannah Burley
Tel: (0131 6)50 4885