NBS8332 : Financial Theory
- Offered for Year: 2020/21
- Module Leader(s): Dr Jong Shin
- Demonstrator: Dr Jose Liu
- Owning School: Newcastle University Business School
- Teaching Location: Newcastle City Campus
|Semester 1 Credit Value:||10|
|Semester 2 Credit Value:||10|
To provide the 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 quantitative skills of management. The module is essential for students who wish to either undertake research in the finance profession or work for investment banks.
Outline Of Syllabus
The module is spread over two semesters. The aim of the module in the first semester is to provide an introduction to the valuation of financial securities such as stocks and bonds. It is assumed that students taking this course are mathematically competent (up to basic differentiation and statistics). Competence in the use of Excel is also 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 course is designed to ensure that student will gain a systematic and comprehensive understanding of a number of key ideas and 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.
|Guided Independent Study||Assessment preparation and completion||1||60:00||60:00||N/A|
|Scheduled Learning And Teaching Activities||Lecture||14||2:00||28:00||N/A|
|Guided Independent Study||Directed research and reading||1||50:00||50:00||N/A|
|Guided Independent Study||Skills practice||4||1:00||4:00||N/A|
|Scheduled Learning And Teaching Activities||Small group teaching||8||1:00||8:00||N/A|
|Guided Independent Study||Independent study||1||50:00||50:00||N/A|
Teaching Rationale And Relationship
- Lectures provide an overview of the main topics.
- Problem sets and the self assessed computer classes reinforce lecture material, and provide students with the opportunity to monitor progress.
The format of resits will be determined by the Board of Examiners
|Written Examination||90||1||A||50||16.5% Multiple choice test. 33.5% Essay question|
|Written Examination||90||2||A||50||16.5 Multiple choice test. 33.5 essay question.|
|Module Code||Module Title||Semester||Comment|
|LBS8332||Financial Theory||1||London equivalent module|
|PC Examination||1||M||Mock exam via Blackboard|
|Prob solv exercises||1||M||Seminar questions are provided|
|Aural Examination||2||M||Seminar questions are provided|
Assessment Rationale And Relationship
The essay question as well as the MCQ test are designed to encourage study across a broad range of topics. The section containing MCQs will be used to assess students in their ability to solve numerical problems. The section comprising of essay-type questions will be used to assess students in their ability to properly explain concepts and ideas by using words, diagrams and equations.