Module Catalogue 2014/15

ECO3018 : Financial Economics

  • Offered for Year: 2014/15
  • Module Leader(s): Dr Hugh Metcalf
  • Owning School: Newcastle University Business School
Semesters
Semester 2 Credit Value: 10
ECTS Credits: 5.0
Pre Requisites
Code Title
ECO1008
ECO1010Mathematics for Economics
ECO2004Microeconomic Analysis
Pre Requisite Comment

or equivalent

Co Requisites
Co Requisite Comment

N/A

Aims

To develop an understanding of tasks facing participants in the bond and stock markets. To introduce students to the Efficient Markets debate. To introduce students to the practical side of financial market risk management, and to develop an understanding of competing views of financial market behaviour.

The module aims to familiarise students with the workings of the financial markets and financial decision making. It is designed to provide an understanding of investment decision making, the main financial models for valuing asset in conditions of certainty and uncertainty, and the importance of market efficiency. Asset values and rates of return will be examined together with the use of portfolios in risk diversification. The course will review the main asset pricing models and consider the problems encountered when testing them empirically. Finally the main theoretical issues that are currently outstanding in this field will be discussed.

Outline Of Syllabus

Lecture 1 - Introduction to Finance and Investment Appraisal.
Lecture 2 - Valuation and Portfolio Theory.
Lecture 3 - Asset Pricing Models.
Lecture 4 - Efficient Markets.
Lecture 5 - Bond Markets.
Lecture 6 & 7 - Options and Futures.

Learning Outcomes

Intended Knowledge Outcomes

Knowledge of the basic functions and terminology of the bond and stock markets.
Comprehension of the main issues in the Efficient Markets debate.
Understanding of the role and use of risk metrics.
Understanding the methods by which stock and bond portfolios may be managed.
Understand the use of asset pricing models.

Intended Skill Outcomes

Applications of economic reasoning to financial market issues.
Undertake literature searches.
Develop teamwork skills.
Complete written assignment.
Complete oral presentations
Reinforce problem solving skills.

Graduate Skills Framework

Graduate Skills Framework Applicable: Yes
  • Cognitive/Intellectual Skills
    • Critical Thinking : Assessed
    • Data Synthesis : Assessed
    • Active Learning : Present
    • Numeracy : Assessed
    • Literacy : Assessed
    • Information Literacy
      • Source Materials : Present
      • Synthesise And Present Materials : Assessed
      • Use Of Computer Applications : Present
  • Self Management
    • Self Awareness And Reflection : Assessed
    • Planning and Organisation
      • Decision Making : Present
    • Personal Enterprise
      • Initiative : Present
      • Problem Solving : Assessed
      • Adaptability : Present
  • Interaction
    • Communication
      • Oral : Assessed
      • Interpersonal : Assessed
      • Written Other : Assessed
    • Team Working
      • Collaboration : Assessed
      • Relationship Building : Present
      • Leadership : Present
  • Application
    • Occupational Awareness : Present
    • Commercial Acumen
      • Market Awareness : Present
      • Governance Awareness : Present
      • Financial Awareness : Present

Teaching Methods

Teaching Activities
Category Activity Number Length Student Hours Comment
Guided Independent StudyAssessment preparation and completion132:0032:00N/A
Scheduled Learning And Teaching ActivitiesLecture72:0014:00N/A
Guided Independent StudyDirected research and reading125:0025:00N/A
Scheduled Learning And Teaching ActivitiesSmall group teaching41:004:00N/A
Guided Independent StudyIndependent study125:0025:00N/A
Total100:00
Teaching Rationale And Relationship

Lectures provide an overview of the main topics.
Seminars require students to present material that focuses on selected issues from lectures.
The investment game introduces teamwork and provides insights into the practicality of portfolio management.
Problem sets reinforce lecture material, and provide students with opportunity to monitor progress.

Reading Lists

Assessment Methods

The format of resits will be determined by the Board of Examiners

Exams
Description Length Semester When Set Percentage Comment
Written Examination1202A70N/A
Other Assessment
Description Semester When Set Percentage Comment
Prof skill assessmnt2M30Group presentation and investment game
Assessment Rationale And Relationship

The unseen examination is designed to encourage study across a broad range of topics, whereas the seminar presentation allows in-depth study of a particular area of the syllabus. The investment game and report are focussed on more practically based issues.

Timetable

Past Exam Papers

General Notes

Original Handbook text:

Note: The Module Catalogue now reflects module information relating to academic year 14/15. Please contact your School Office if you require module information for a previous academic year.

Disclaimer: The University will use all reasonable endeavours to deliver modules in accordance with the descriptions set out in this catalogue. Every effort has been made to ensure the accuracy of the information, however, the University reserves the right to introduce changes to the information given including the addition, withdrawal or restructuring of modules if it considers such action to be necessary.