On successful completion of this module students should be able to:
Evaluate the structure, operation and role of financial markets
Critically analyse the efficient markets hypothesis
Explain and analyse the role of financial institutions and financial intermediation
Analyse the risk-return trade-off in investments
Explain and apply portfolio theory in the context of capital markets
Analyse portfolio management in practice
Aims
To provide theoretical and practical perspectives on the role and efficiency of financial markets, and the key concepts of investing.
Brief description
The module will analyse the role of financial markets in supplying finance and managing financial risk within companies and financial institutions. It will also address some key concepts, theories and practices in managing portfolios and investing.
Content
Introduction to financial markets and the efficient markets hypothesis
Functions and mechanics of equity, foreign exchange and derivatives trading
The role of financial institutions and financial intermediation
Analysis of investment concepts, risk and return
Portfolio theory and capital markets
Active versus passive portfolio management
Module Skills
Reading Lists
Books
D Blake (2000) Financial Market Analysis
2nd edition. Wiley
M Buckle and J Thompson (2004) The UK Financial System
4th edition. Manchester University Press