Module Identifier ACM2020  
Module Title ADVANCED FINANCE  
Academic Year 2004/2005  
Co-ordinator Professor Owain M Ap Gwilym  
Semester Semester 2 (Taught over 2 semesters)  
Course delivery Lecture   30 Hours 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 focuses on various pricing approaches for financial assets. We then address current issues in financial market research, notably market microstructure. The final element of the module is focused on financial institutions, with particular emphasis on capital adequency and credit risk.

Content

1: A review of asset pricing
2: The state preference framework and option pricing
3: Evidence on the rational perspective
4: The behavioural perspective
5: Selected current issues in financial markets
6: Theories of financial intermediation
7: Capital adequacy and balance sheet management
8: Selected current issues for financial institutions

Reading Lists

Journals
** Supplementary Text
Bessis, J (2002) Risk Management in Banking, 2nd edition. Wiley
** Recommended Background
Ryan, B, RW Scapens and M Theobald (2002) Research Method and Methodology in Finance and Accounting, 2nd edition. Thomson
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

Notes

This module is at CQFW Level 7