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FINN2071: Intermediate Financial Economics

Please ensure you check the module availability box for each module outline, as not all modules will run in each academic year. Each module description relates to the year indicated in the module availability box, and this may change from year to year, due to, for example: changing staff expertise, disciplinary developments, the requirements of external bodies and partners, and student feedback. Current modules are subject to change in light of the ongoing disruption caused by Covid-19.

Type Tied
Level 2
Credits 20
Availability Available in 2023/24
Module Cap None.
Location Durham
Department Finance

Prerequisites

  • Introduction for Financial Economics (FINNNEW03)

Corequisites

  • None

Excluded Combinations 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 and seminars. Learning takes place through attendance at lectures, preparation for and participation in seminars, and private study.
  • Formative assessment is by means of one online test.
  • Summative assessment is by means of an assignment to test students' subject-specific knowledge and understanding.

Teaching Methods and Learning Hours

ActivityNumberFrequencyDurationTotalMonitored
Lectures201 per week1 hour20 
Seminars8Fortnightly, across term 1 and term 21 hour8Yes
Preparation and Reading172 
Total200 

Summative Assessment

Component: AssignmentComponent Weighting: 100%
ElementLength / DurationElement WeightingResit Opportunity
Written Assignment3000 words max100same

Formative Assessment

An online test.

More information

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