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Module

NBS8001 : International Finance and Capital Markets

  • Offered for Year: 2021/22
  • Module Leader(s): Dr Bo Che
  • Lecturer: Professor Simon Hussain, Dr Yousry Ahmed, Dr Periklis Boumparis
  • Owning School: Newcastle University Business School
  • Teaching Location: Newcastle City Campus
Semesters
Semester 1 Credit Value: 15
Semester 2 Credit Value: 15
ECTS Credits: 15.0

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

Teaching Methods

Teaching Activities
Category Activity Number Length Student Hours Comment
Structured Guided LearningLecture materials92:0018:00Pre-recorded lecture materials
Scheduled Learning And Teaching ActivitiesLecture92:0018:00pip lectures
Guided Independent StudyAssessment preparation and completion198:0098:00N/A
Guided Independent StudyDirected research and reading170:0070:00N/A
Scheduled Learning And Teaching ActivitiesSmall group teaching42:008:00pip seminars
Scheduled Learning And Teaching ActivitiesSmall group teaching11:001:00pip seminar
Structured Guided LearningStructured non-synchronous discussion40:302:002 per semester
Guided Independent StudyIndependent study177:0077:00N/A
Scheduled Learning And Teaching ActivitiesScheduled on-line contact time41:004:001 for whole cohort intro 1 for pre-assessment clinic 1 for drop-in (2 per semester)
Scheduled Learning And Teaching ActivitiesScheduled on-line contact time22:004:00Whole-cohort: Delivered online at start of the academic year for the first two weeks
Total300:00
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 Methods

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

Exams
Description Length Semester When Set Percentage Comment
Written Examination1802A80N/A
Other Assessment
Description Semester When Set Percentage Comment
Report1M201200 words (excluding references, tables, appendix)
Formative Assessments
Description Semester When Set Comment
Prob solv exercises1MSeminar questions provided
Prob solv exercises2MSeminar questions provided
Written exercise2MOpportunity to submit practice attempts at past exam questions.
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.

Reading Lists

Timetable