| CODE | ACC5964 | ||||||||||||
| TITLE | Financial Instruments and Risk Analysis | ||||||||||||
| UM LEVEL | 05 - Postgraduate Modular Diploma or Degree Course | ||||||||||||
| MQF LEVEL | 7 | ||||||||||||
| ECTS CREDITS | 5 | ||||||||||||
| DEPARTMENT | Accountancy | ||||||||||||
| DESCRIPTION | The study-unit is divided into three parts, each part building on the previous, adopting the basic building block approach to modern financial theory. The first part deals with the economic theory of choice, the nature of investments, financial markets, the pricing of fixed income securities on the basis of no arbitrage, and covers some equity pricing models. The second part deals with the construction of asset portfolios and moves on to a general equilibrium setting, the derivation of the Capital Asset Pricing Model (CAPM). The third part focuses on derivatives and risk management techniques, giving insight into the Black-Scholes-Merton model, some derivatives trading strategies, and the measurement and management of market and credit risk. Study-unit Aims: The study-unit is aimed at delivering theoretical and practical insights into modern finance, building on the knowledge acquired in ACC3521 Foundations of Finance, with special focus on fixed income and equity instruments, and the measurement and management of the major risks faced by institutional and individual investors. Learning Outcomes: 1. Knowledge & Understanding By the end of the study-unit the student will be able to: a) Explain advanced principles in portfolio construction and management; b) Demonstrate an understanding of derivatives pricing techniques and trading strategies by carrying out appropriate calculations and investigating case studies; c) Describe and perform risk measurement and management using case studies. 2. Skills By the end of the study-unit the student will be able to: a) Obtain an understanding of the types of financial instruments and financial markets; b) Calculate the price of fixed income and equity securities, and decide on the most suitable investment; c) Report to management and/or clients, giving advice on investment and risk management decisions. Such advice includes the valuation of fixed income and equity instruments, construction of portfolios, and the implementation of risk management strategies. Main Text/s and any supplementary readings: - Elton J E, Gruber J M, Brown J S and Goetzmann N W - Modern Portfolio Theory and Investment Analysis, latest edition. - Pike R and Neale B - Corporate Finance and Investment Decisions and Strategies. Ft Prentice Hall, latest edition. - Hull C J - Options, Futures and Other Derivatives, latest edition. |
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| ADDITIONAL NOTES | Pre-requisite Qualifications: Bachelor of Commerce with Accountancy Stream | ||||||||||||
| STUDY-UNIT TYPE | Lecture | ||||||||||||
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The University makes every effort to ensure that the published Courses Plans, Programmes of Study and Study-Unit information are complete and up-to-date at the time of publication. The University reserves the right to make changes in case errors are detected after publication.
The availability of optional units may be subject to timetabling constraints. Units not attracting a sufficient number of registrations may be withdrawn without notice. It should be noted that all the information in the description above applies to study-units available during the academic year 2023/4. It may be subject to change in subsequent years. |
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