Durham University
Programme and Module Handbook

Undergraduate Programme and Module Handbook 2024-2025

Module FINN2071: Intermediate Financial Economics

Department: Finance

FINN2071: Intermediate Financial Economics

Type Tied Level 2 Credits 20 Availability Available in 2024/2025 Module Cap None. Location Durham
Tied to N305
Tied to N306
Tied to N307
Tied to NN43
Tied to N302
Tied to N304

Prerequisites

  • Introduction for Financial Economics (FINNNEW03)

Corequisites

  • None

Excluded Combination of Modules

  • None

Aims

  • To develop knowledge of the financial economics; and develop knowledge of using the basic method of economics to analyse financial problems.

Content

  • Micro-foundations of asset pricing models.
  • Discount factors and pricing kernels.
  • The cross sections of equity returns.
  • Monetary policy, macroeconomic factors and asset prices.
  • Asset prices and the business cycle.

Learning Outcomes

Subject-specific Knowledge:
  • By the end of the module students should be able to understand how financial markets work and how securities are priced.
Subject-specific Skills:
  • By the end of the module students should be able to:
  • understand how financial markets work;
  • demonstrate and apply the key theory, tools, and terminology of Financial Economics;
  • abstract and simplify basic economic problems through the application of simple theoretical methods;
  • formalise real world situations by using models and techniques suggested by the theory;
  • solve numerically typical problems related to asset pricing and risk management.
Key Skills:
  • Written communication - through summative assessment.
  • Planning and Organising - by preparing for the assignment.
  • Initiative - by searching relevant literature and information in preparation for summative assessment.
  • Problem Solving and Analysis - by applying the necessary analytical skills, as well as the ability to manipulate concepts in economics, in undertaking assessed work.
  • Reasoning abilities - skills in assessing alternative ideas, and the criteria used in accepting or rejecting economic arguments, theories or theoretical systems.

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

  • Teaching is by lectures, computer labs and workshops. Learning takes place through attendance at lectures, preparation for and participation in computer labs and workshops, and private study.
  • Formative assessment is by means of a range of exercises that will be completed throughout the module in workshops and one online multiple-choice test.
  • Summative assessment is by means of an assignment to test students' subject-specific knowledge and understanding.

Teaching Methods and Learning Hours

Activity Number Frequency Duration Total/Hours
Lectures 10 1 per week 2 hours 20
Computer Labs & Workshops 4 of each Weekly, across term 1 1 hour 8
Preparation and Reading 172
Total 200

Summative Assessment

Component: Assignment Component Weighting: 100%
Element Length / duration Element Weighting Resit Opportunity
Written Assignment 3000 words max 100% same

Formative Assessment:

A range of exercises will be completed throughout the module in workshops and one online multiple-choice test.


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