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DRPS : Course Catalogue : Business School : Common Courses (Management School)

Postgraduate Course: Financial Markets and Investment (CMSE11170)

Course Outline
SchoolBusiness School CollegeCollege of Arts, Humanities and Social Sciences
Credit level (Normal year taken)SCQF Level 11 (Postgraduate) AvailabilityAvailable to all students
SCQF Credits15 ECTS Credits7.5
SummaryThe course provides an introduction to the structure and functioning of equity, bond markets and derivative markets. It also focuses on specific topics that include: modern portfolio theory, asset pricing factor models, behavioural finance, fixed income valuation, the term structure of interest rates and risk management using derivative securities.
Course description Students are expected to get acquainted with the structure of equity, bond and derivative markets and the main instruments traded in these markets. This will be achieved by a mix of lectures on the related theory and discussion of published research in the area.

Content outline:
- Portfolio Management: Mutual Funds & Hedge Funds
- Fixed Income Markets
- Portfolio Optimisation
- Asset Pricing Factor Models
- The Efficient Markets Hypothesis
- Behavioural Finance
- Introduction to Derivatives
- The Financial Crisis

Student Learning Experience:
The lecture programme is designed to introduce students to key financial markets and methods used to make portfolio investment decisions in these markets. The key information and concepts are presented in both lectures and tutorials, and both use simple numerical examples to promote understanding. The empirical literature related to the various topics will be employed to enhance the practicality of the subject matter. There will be time for questions and discussion in class.
Entry Requirements (not applicable to Visiting Students)
Pre-requisites Co-requisites
Prohibited Combinations Other requirements None
Information for Visiting Students
High Demand Course? Yes
Course Delivery Information
Academic year 2022/23, Not available to visiting students (SS1) Quota:  None
Course Start Semester 1
Timetable Timetable
Learning and Teaching activities (Further Info) Total Hours: 150 ( Lecture Hours 20, Summative Assessment Hours 2, Programme Level Learning and Teaching Hours 3, Directed Learning and Independent Learning Hours 125 )
Assessment (Further Info) Written Exam 70 %, Coursework 30 %, Practical Exam 0 %
Additional Information (Assessment) 70% exam (individual) - assesses all course Learning Outcomes
30% coursework (group) - assesses all course Learning Outcomes
Feedback Formative feedback:
Students will be encouraged to ask questions in class and meetings as requested with the course lecturer.
Summative feedback: Course learning outcomes will be assessed in both a group project and an end of semester exam. Group specific written feedback will be provided for each project and exam-level feedback will be provided after the exam.
Exam Information
Exam Diet Paper Name Hours & Minutes
Main Exam Diet S1 (December)Financial Markets and Investment (CMSE11170)2:00
Learning Outcomes
On completion of this course, the student will be able to:
  1. Understand and critically discuss the role of the financial system in an economy
  2. Understand and critically discuss how markets for equities, bonds and derivatives function and how these instruments are traded
  3. Understand and critically discuss the role of capital markets in raising finance for firms and the role of derivative markets in risk management
  4. Critically evaluate issues related to portfolio construction, valuation and risk management
  5. Analyse and critically evaluate the empirical literature relating to topics covered on the course
Reading List
Investments by Bodie, Z., Kane, E., and Marcus, A.J., Eleventh Edition
ISBN: 978-1-260-08339-2
Additional Information
Graduate Attributes and Skills Cognitive Skills:
The course will develop:
* skills of reasoning and numerical analysis
* decision-making skills in an investment context
* familiarity with financial concepts and techniques
* intuition to aid financial decision making

Subject Specific Skills:
After completing this course, students should be able to:
* Acquire knowledge of the basic concepts of the structure and function of financial markets.
* Break down the characteristics of investments in equity, fixed income and derivative securities
* Present in an organised manner academic and clinical research studies related to operation of financial markets and the investment decisions faced by market participants.
* Find and analyse relevant literature on issues related the role of capital markets in providing capital for firms and contributing to economic growth.
KeywordsNot entered
Course organiserDr Ronan Gallagher
Tel: (0131 6)50 8075
Course secretaryMrs Tellisa Cannon
Tel: (0131 6)51 3758
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