Module Catalogue 2024/25

Pre Requisite Comment

None

Co Requisite Comment

NBS8006 Accounting for Analysts
Or
NBS8401 Business Context and Operations
NBS8135 Introduction to Financial Reporting
NBS8224 Performance and Decision Management
NBS8233 Managerial Decision Making and Control
NBS8235 Financial Planning and Investment

Aims

The module aims to provide you with the knowledge and skills needed for the critical appraisal of
investment decision-making methods within a real-world context, and the ability to interpret real world
investment data in order to discriminate between different investment opportunities

Outline Of Syllabus

Investment Appraisal and the Foundations of Finance

1. Methods of investment and project analysis for corporations
2. Sources of finance: how companies raise capital through debt and equity
3. Valuing assets: an application of how the market values debt and equity
4. Market efficiency: why it matters to companies and investors
5. Portfolio theory: applications to real-world data
6. The concept of capital asset pricing within a single-period setting
7. The capital structure decision and the dividend decision: do they matter?


Financial risk and derivatives

1. Futures (forward) contracts and hedging strategies
2. Stock options
3. Swaps
4. Managing Financial Risk

Bond investment and equity fund management

1. Valuation and duration: why they matter to investors
2. and the benefit of bond convexity
3. A look at bonds with embedded options. Styles of fund management and the special case of market timing through beta management
4. Evaluation of fund performance: methods, applications and empirical evidence from international surveys
Contemporary issues in finance

Intended Knowledge Outcomes

At the end of this module students should be able to:

(i) Value securities using a range of models and to be able to critically evaluate these models within different contexts

(ii) Assess and critically evaluate the relevance of academic research to real-world financial decision-making

Intended Skill Outcomes

At the end of this module students should be able to:

(i) Conduct research into the evaluation of real-world investment data via a written report

(ii) Employ data analysis to discriminate between investment opportunities

Teaching Rationale And Relationship

The lecture material is used to impart basic knowledge and understanding, although lecture sessions will also involve some elements of discussion and workshop activity. Student discussion of issues develops understanding and helps develop certain key skills. The subject requires a good deal of additional reading to supplement the lecture materials and provide a greater depth of understanding, as well as increasing exposure to the research literature. The coursework provides an opportunity to practise certain professional and cognitive skills and gain feedback thereon. The fully blended approach was taken as it offers the flexibility we need to prepare for the uncertain future.

Assessment Rationale And Relationship

1. The coursework allows for students to apply theory into practice in the setting of investment decisions. Students are required to both critically and mathematically evaluate the scenario provided to them.
2. The examination seeks to assess the broad range of understanding across the module. In the case of an alternative semester 2 assessment (worth 80% of the overall module mark) being necessary due to circumstances, the module leader will in the first instance consult with the DPD as to the requirements of the professional accrediting body to discuss possible acceptable alternatives. In 2020/21 this alternative was a 24 hour take home exam delivered online, and it is envisioned that if circumstances do not allow a present-in-person timed exam at the end of semester 2, and the professional body agrees, then this may well be an example of the type of alternative assessment which could be put in place.

General Notes

N/A