ECN357 Modern Finance

Aims/Description: The aim of this module is to introduce some of the main principles of modern finance. This is an analytical module which reflects the quantitative nature of the subject and each topic is developed from first principles. The topics covered include: the time value of money and its applications; risk return and diversification; introduction to portfolio selection; the capital asset pricing model (CAPM) and its use; and an introduction to the role of utility theory in finance and company capital structure. The aims of the module are to: Provide an introduction to portfolio theory, i.e., the concept of financial risk and behaviour of rational, risk-averse investors; Leading to a general equilibrium picture of financial asset returns and prices; Explore corporate financial decision making in the major areas of Capital Structure (the mix of equity and debt financing used to finance the firm¿s investments); Introduce students to concepts of Stock Market Efficiency and Option Pricing, considering in particular alternative pricing models.

Restrictions on availability: ECN130, ECN118 or ECN119 and MAS equivalent

Staff Contact: ALZUABI RASLAN

Teaching Methods: Lectures, Seminars, Independent Study

Assessment: Formal Exam, Classroom testing

Information on the department responsible for this unit (Economics):

Departmental Home Page

Teaching timetable

NOTE The content of our courses is reviewed annually to make sure it's up-to-date and relevant. Individual modules are occasionally updated or withdrawn. This is in response to discoveries through our world-leading research; funding changes; professional accreditation requirements; student or employer feedback; outcomes of reviews; and variations in staff or student numbers. In the event of any change we'll consult and inform students in good time and take reasonable steps to minimise disruption.

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Teaching methods and assessment displayed on this page are indicative for 2023-24.