Study-Unit Description

Study-Unit Description


CODE ECN5052

 
TITLE Advanced Financial Economics

 
UM LEVEL 05 - Postgraduate Modular Diploma or Degree Course

 
MQF LEVEL Not Applicable

 
ECTS CREDITS 6

 
DEPARTMENT Economics

 
DESCRIPTION The study-unit principally deals with investment analysis, valuation and management of financial assets, namely stocks and bonds. It also concerns the role of the Finance Manager and hence deals with the economist as a financial decision maker, covering financial decision making under conditions of uncertainty. Course participants are instructed not to rely solely on material and lecture handouts but to include reading from the relevant texts in addition.

Asset Pricing Models and the role of the market portfolio are central to financial economics, and the concentration here will be on the Capital Asset Pricing Model (CAPM) and Arbitrage Pricing Theory. The efficiency of capital markets is also thoroughly covered, together with an overview of international asset diversification. This study-unit has a strong bent towards the theory and practice of Corporate Finance.

Topics covered in the study-unit include: The investment environment, Portfolio Theory, Risk and Return, Capital Budgeting, Arbitrage Pricing Theory, Corporate Financing, Dividend Policy, International Asset Diversification.

Reading List

- Bodie, Z, Kane, A and Marcus A.J, Investments, Irvin, Third Edition, 1994
- Copeland, T.E and J.F. Weston, Financial Theory and Corporate Policy, Addison-Wesley, 1988.
- Brealey, R.A. and S.C. Myers, Principles of Corporate Finance, McGraw-Hill, 1991.

 
STUDY-UNIT TYPE Lecture

 
METHOD OF ASSESSMENT
Assessment Component/s Sept. Asst Session Weighting
Examination Yes 100%

 
LECTURER/S

 

 
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Units not attracting a sufficient number of registrations may be withdrawn without notice.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 2025/6. It may be subject to change in subsequent years.

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