Newcastle University

Aims

To provide the sound foundations in financial theory and its applications. To present the way of posing financial problems, the process of formulating them and applying theoretical concepts to complex corporate problems. To help students "think like economists" and gain the analytical and qwuantitative skills of management. The module is essential for students who wish to either undertake research in the finance profession or work for investment banks.

Original Summary:
The module is spread over two semesters. The aim of the module in the first semester is to provide an introduction to Corporate Finance, and to the policy issues which accompany it. It is assumed that students taking this course are mathematically competent (up to basic differentiation and statistics) and competent in the English language. Competence in the use of Excel is assumed. No prior knowledge of finance is assumed.

The aim of the module in the second semester is to introduce students to the theory and empirical evidence relevant for investment decisions. The design of the course puts emphasis on intuitive understanding and on some practical applications of investment analysis.
The topics covered include diversification and asset allocation, theory and empirical evidence of equilibrium prices and returns in capital markets, forms of market inefficiency, and active and passive portfolio management.
The seminars are an important part of the course. They consist of practical applications of the theoretical concepts delivered during lectures. They presuppose a basic knowledge of linear regression analysis.

Outline Of Syllabus

See module summary

Teaching Rationale And Relationship

- Lectures provide an overview of the main topics.
- The assignment assesses insights into the practicality of portfolio
- Problem sets reinforce lecture material, and provide students with the opportunity to monitor progress.

Assessment Rationale And Relationship

The unseen examination is designed to encourage study across a broad range of topics.

Reassessment will be 100% exam.