Postgraduate Course: Financial Markets and Investment (CMSE11667)
Course Outline
| School | Business School |
College | College of Arts, Humanities and Social Sciences |
| Credit level (Normal year taken) | SCQF Level 11 (Postgraduate) |
Availability | Available to all students |
| SCQF Credits | 20 |
ECTS Credits | 10 |
| Summary | The 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 efficient markets hypothesis 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.
Outline Content
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.
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Entry Requirements (not applicable to Visiting Students)
| Pre-requisites |
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Co-requisites | |
| Prohibited Combinations | |
Other requirements | None |
Information for Visiting Students
| Pre-requisites | None |
| High Demand Course? |
Yes |
Course Delivery Information
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| Academic year 2025/26, Available to all students (SV1)
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Quota: None |
| Course Start |
Semester 1 |
Timetable |
Timetable |
| Learning and Teaching activities (Further Info) |
Total Hours:
200
(
Lecture Hours 20,
Seminar/Tutorial Hours 8,
Programme Level Learning and Teaching Hours 4,
Directed Learning and Independent Learning Hours
168 )
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| Assessment (Further Info) |
Written Exam
70 %,
Coursework
30 %,
Practical Exam
0 %
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| Additional Information (Assessment) |
30% Project report (Group) - 3,000 words - Assesses course Learning Outcomes 1,2,4,5
70% Written Exam (Individual) - Assesses all course Learning Outcomes |
| Feedback |
Formative: From week 3 onwards we will have a tutorial session. In advance students prepare answers to a given problem set. Some focus on discussion of aspects of empirical papers. Other focus on more computational problems. In the tutorial setting feedback will be provided, both from group discussion and directly from the instructor. In week 5 the course has a drop-in session where students can discuss their group project with the instructor, receiving feedback on the planned outline and initial work.
Summative: Draft solutions are made available for the final examination. Students have the option to see their marked examination scripts and discuss with the instructor where appropriate. |
| No Exam Information |
Learning Outcomes
On completion of this course, the student will be able to:
- Understand and critically discuss the role of the financial system in an economy
- Understand and critically discuss how markets for equities, bonds and derivatives function and how these instruments are traded
- Understand and critically discuss the role of capital markets in raising finance for firms and the role of derivative markets in risk management
- Critically evaluate issues related to portfolio construction, valuation and risk management
- Analyse and critically evaluate the empirical literature relating to topics covered on the course
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Reading List
Investments by Bodie Kane and Marcus
Thirteenth (International) Edition 978-1-266-08596-3 |
Additional Information
| Graduate Attributes and Skills |
Communication, ICT, and Numeracy Skills
After completing this course, students should be able to:
Convey meaning and message through a wide range of communication tools, including digital technology and social media; to understand how to use these tools to communicate in ways that sustain positive and responsible relationships.
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.
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.
Identify, define and analyse theoretical and applied business and management problems, and develop approaches, informed by an understanding of appropriate quantitative and/or qualitative techniques, to explore and solve them responsibly.
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| Keywords | Financial,Markets,Investment,Equity,Bonds,Derivatives |
Contacts
| Course organiser | Dr Ronan Gallagher
Tel: (0131 6)50 8075
Email: Ronan.Gallagher@ed.ac.uk |
Course secretary | |
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