Module FINN40515: Advanced Financial Theory

Department: Finance

FINN40515: Advanced Financial Theory

Prerequisites

• None.

Corequisites

• Econometric Methods (FINN41715)

Excluded Combination of Modules

• None

Aims

• to provide a rigorous training in the theory of modern finance at an advanced level and a thorough synthesis of the most important current research in finance, with an emphasis on the applications of the principles.
• to provide students with an advanced understanding of normative and positive research in financial theory, together with supporting descriptive and empirical evidence.

Content

• Financial decision-making under standard preferences (Arrow-Debreu).
• Static and dynamic asset allocation.
• Risk and insurance.
• Classical and neo-classical asset pricing models.

Learning Outcomes

• have advanced knowledge and critical understanding of essential components of modern finance theory and associated current research;
• have explored, understood and appreciated the complexity and contradictions of the current academic literature and its implications for professional practice, and be able to identify open questions for their own research, making use of available facilities;
• have the ability to learn and work independently in finance, exercising critical judgement in the resolution of complex problematic situations, including appropriate techniques of analysis.

• be able to use highly specialised and advanced technical, professional and academic research skills in the analysis of relevant specific problems in finance;
• be able to apply problem solving and analytical skills of research to issues in finance in a complex specialised context.

• Written Communication;
• Planning, Organising and Time Management;
• Problem Solving and Analysis;
• Using Initiative;
• Numeracy;
• Computer Literacy.

Modes of Teaching, Learning and Assessment and how these contribute to the learning outcomes of the module

• A combination of lectures, seminars and guided reading will contribute to achieving the aims and learning outcomes of this module.
• The summative written assignment will test students' knowledge and critical understanding of the material covered in the module and in existing literature, their analytical and problem-solving skills, producing a written report equivalent to a draft article.
• The formative assessment consists of several multiple-choice tests given to students every two weeks during the term (4 in total). The formative assessment is administered electronically on Learn Ultra and allows students to receive timely feedback on their work in order to identify areas of individual strengths and weaknesses.

Teaching Methods and Learning Hours

Summative Assessment

Formative Assessment:

Two multiple-choice tests, in-class feedback on Workshop answers prepared by students, and feedback via Learn Ultra on additional work. The formative tests will take place during the term and are administered electronically on Learn Ultra.

■ Attendance at all activities marked with this symbol will be monitored. Students who fail to attend these activities, or to complete the summative or formative assessment specified above, will be subject to the procedures defined in the University's General Regulation V, and may be required to leave the University