Module Identifier ACM2020  
Module Title ADVANCED FINANCE  
Academic Year 2007/2008  
Co-ordinator Professor Owain M Ap Gwilym  
Semester Semester 2 (Taught over 2 semesters)  
Other staff Mr Athanasios Verousis  
Course delivery Lecture   2 lectures per week  
Assessment
Assessment TypeAssessment Length/DetailsProportion
Semester Exam3 Hours  80%
Semester Assessment 2,000 word essay20%
Supplementary Exam3 Hours  100%

Learning outcomes

On successful completion of this module students should be able to:
analyse and evaluate theoretical and practical aspects of the following areas:





Aims

(i) To provide theoretical and practical perspectives on asset pricing, financial markets and financial intermediaries;
(ii) To demonstrate important theoretical and empirical findings from the research literature.

Brief description

The first part of the module is focused on financial institutions, with particular emphasis on capital adequacy and credit risk. The second part focuses on pricing models for financial assets. The final theme addresses some current issues in financial market research, notably market microstructure.

Content

  1. Theories of financial intermediation
  2. Credit risk management within financial institutions
  3. Capital requirements and securitisation
  4. A review of asset pricing
  5. Capital market theory
  6. Empirical asset pricing models
  7. The state preference framework and option pricing
  8. Forecasting financial markets
  9. Market microstructure

Reading Lists

Journals
** Supplementary Text
Bessis, J (2002) Risk Management in Banking, 2nd edition. Wiley
Brealey, R and S Myers (2003) Principles of Corporate Finance, 7th edition. McGraw Hill
Saunders, A and MM Cornett (2003) Financial Institutions Management: A risk management approach, 4th edition. McGraw Hill
** Recommended Background
Ryan, B, RW Scapens and M Theobald (2002) Research Method and Methodology in Finance and Accounting, 2nd edition. Thomson

Notes

This module is at CQFW Level 7