Undergraduate Course: Applications of Finance (BUST08018)
Course Outline
| School | Business School |
College | College of Arts, Humanities and Social Sciences |
| Credit level (Normal year taken) | SCQF Level 8 (Year 2 Undergraduate) |
Availability | Available to all students |
| SCQF Credits | 20 |
ECTS Credits | 10 |
| Summary | 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, 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.
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Information for Visiting Students
| Pre-requisites | Visiting 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:
- Broaden their knowledge and understanding of core concepts and ideas in finance, such as investment management and risk management with derivatives.
- Undertake a literature review by critically evaluating academic papers in the finance literature.
- Understand and critically discuss important traditional and new applications of finance, such as forward and futures, options, blockchain and high-frequency trading.
- 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.
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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. |
| Keywords | Not entered |
Contacts
| Course organiser | Mr Khaladdin Rzayev
Tel:
Email: Khaladdin.rzayev@ed.ac.uk |
Course secretary | Miss Jen Wood
Tel: (0131 6)50 8335
Email: J.Wood@ed.ac.uk |
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