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ECO3018 : Financial Economics

  • Offered for Year: 2024/25
  • Module Leader(s): Dr Xueqi Dong
  • Owning School: Newcastle University Business School
  • Teaching Location: Newcastle City Campus

Your programme is made up of credits, the total differs on programme to programme.

Semester 2 Credit Value: 10
ECTS Credits: 5.0
European Credit Transfer System


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

Introduction to Finance and Investment Appraisal
Valuation and Portfolio Theory
Asset Pricing Models
Efficient Markets
Bond Markets
Options and Futures

Teaching Methods

Teaching Activities
Category Activity Number Length Student Hours Comment
Guided Independent StudyAssessment preparation and completion130:0030:00N/A
Scheduled Learning And Teaching ActivitiesLecture121:0012:00PiP lectures
Guided Independent StudyDirected research and reading133:0033:00N/A
Scheduled Learning And Teaching ActivitiesSmall group teaching41:004:00PiP seminars
Guided Independent StudyIndependent study117:0017:00N/A
Scheduled Learning And Teaching ActivitiesScheduled on-line contact time41:004:00N/A
Teaching Rationale And Relationship

Lectures deliver comprehensive information, introduce new topics, and inspire students, providing a structured overview.

Seminars, in smaller groups, encourage interactive discussions, critical thinking, and the application of knowledge. They focus on skill development, personalized feedback, and deepening understanding through active participation.

Assessment Methods

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

Description Length Semester When Set Percentage Comment
Written Examination1202A100The exam can be administered online, if necessary.
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.

In the case of an alternative assessment for semester 1 (100% of the module mark) being necessary due to circumstances, the Module Leader will in discussion with the DPD and the University, discuss possible acceptable online alternatives, such as a take home exam delivered online with a set time limit to complete (24 hours or less as deemed appropriate).

Reading Lists