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DRPS : Course Catalogue : Business School : Business Studies

Undergraduate Course: Applications of Finance (BUST08018)

Course Outline
SchoolBusiness School CollegeCollege of Arts, Humanities and Social Sciences
Credit level (Normal year taken)SCQF Level 8 (Year 2 Undergraduate) AvailabilityAvailable to all students
SCQF Credits20 ECTS Credits10
SummaryThe course will consolidate the conceptual learning in Principles of Finance by introducing students to some of the practical aspects of finance, for example valuation, company risk management and company restructuring.
Course description The course is designed to complement Principles of Finance. The latter is a theoretical and conceptual course which introduces students to the core ideas of finance. Applications of Finance will fill focus on empirical and practical applications of these concepts and theories. Thus, the course will consolidate the conceptual learning in Principles of Finance by introducing students to some of the practical aspects of finance, for example, valuation, trading strategies based on derivatives, and new finance applications, such as blockchain and high-frequency trading.

Outline Content

- Financial systems and the investment environment;

- Trading, including high-frequency trading;

- Currency markets and futures;

- Interest rate and currency swaps;

- Options and trading strategies;

- Socially responsible investing, corporate governance and corporate social responsibility;

- Financial crises and investment management.

- Blockchain and cryptocurrencies.

Student Learning Experience

Broadening knowledge of core concepts and ideas in finance, in particular in the areas of investment management, and risk management with derivatives; introduction to empirical research in finance;

Further knowledge of financial instruments, markets and transactions; for example, options, forwards/futures, and cryptocurrencies; further knowledge of financial information used by company executives, investors and analysts.
Entry Requirements (not applicable to Visiting Students)
Pre-requisites Students MUST have passed: ( Global Challenges for Business (BUST08035) AND The Business of Edinburgh (BUST08036)) OR Introduction to Financial Markets (BUST08029) OR Economics 1 (ECNM08013) OR ( Economic Applications (ECNM08003) AND Economic Principles (ECNM08004))
Co-requisites Students MUST also take: Principles of Finance (BUST08003) OR Introduction to Corporate Finance (BUST08030)
Prohibited Combinations Other requirements None
Information for Visiting Students
Pre-requisitesVisiting students must have at least 1 introductory level Business Studies/Finance course at grade B or above for entry to this course. We will only consider University/College level courses.
High Demand Course? Yes
Course Delivery Information
Academic year 2024/25, Available to all students (SV1) Quota:  None
Course Start Semester 2
Timetable Timetable
Learning and Teaching activities (Further Info) Total Hours: 200 ( Lecture Hours 20, Seminar/Tutorial Hours 8, Summative Assessment Hours 2, Revision Session Hours 3, Programme Level Learning and Teaching Hours 4, Directed Learning and Independent Learning Hours 163 )
Assessment (Further Info) Written Exam 70 %, Coursework 30 %, Practical Exam 0 %
Additional Information (Assessment) 70% Written Exam (Individual) - 3 hours - Assesses course Learning Outcomes 1,3,4

30% Literature Survey (Individual) - 1500 words - Assesses course Learning Outcomes 2
Feedback Formative: Feedback will be provided throughout the course.

Summative: Feedback will be provided on assessments within agreed deadlines.
Exam Information
Exam Diet Paper Name Hours & Minutes
Main Exam Diet S2 (April/May)2:00
Resit Exam Diet (August)2:00
Learning Outcomes
On completion of this course, the student will be able to:
  1. Broaden their knowledge and understanding of core concepts and ideas in finance, such as investment management and risk management with derivatives.
  2. Undertake a literature review by critically evaluating academic papers in the finance literature.
  3. Understand and critically discuss important traditional and new applications of finance, such as forward and futures, options, blockchain and high-frequency trading.
  4. Understand and critically discuss the financial information used by company executives, investors and analysts.
Reading List
This course builds heavily on academic research papers. Therefore, there is no textbook which is recommended that students buy. Instead, students are advised to do the reading as listed under each topic. Additional resources may be added where appropriate, for example where topical readings are published during the semester. Any such material will be highlighted at the start of each lecture.

Students may find the following textbooks useful for general background reading (any edition will be suitable)

Keith Pilbeam, Finance & Financial Markets, Palgrave Macmillan.

Bodie, Kane and Marcus (2010), Investments, McGraw Hill.

Maginn, Tuttle, Pinto, and McLeavey (2007) Managing Investment Portfolios: A Dynamic Process, published by CFA Institute and Wiley.

Reading financial press and blogs is essential to get the most out of this course.
Additional Information
Graduate Attributes and Skills Communication, ICT, and Numeracy Skills

After completing this course, students should be able to:

Critically evaluate and present digital and other sources, research methods, data and information; discern their limitations, accuracy, validity, reliability and suitability; and apply responsibly in a wide variety of organisational contexts.

Cognitive Skills

After completing this course, students should be able to:

Be self-motivated; curious; show initiative; set, achieve and surpass goals; as well as demonstrating adaptability, capable of handling complexity and ambiguity, with a willingness to learn; as well as being able to demonstrate the use digital and other tools to carry out tasks effectively, productively, and with attention to quality.

Knowledge and Understanding

After completing this course, students should be able to:

Demonstrate a thorough knowledge and understanding of contemporary organisational disciplines; comprehend the role of business within the contemporary world; and critically evaluate and synthesise primary
and secondary research and sources of evidence in order to make, and present, well informed and transparent organisation-related decisions, which have a positive global impact.
KeywordsNot entered
Course organiserMr Khaladdin Rzayev
Course secretaryMiss Jen Wood
Tel: (0131 6)50 8335
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