Postgraduate Course: Financial Markets (MATH11065)
Course Outline
| School | School of Mathematics |
College | College of Science and Engineering |
| Course type | Standard |
Availability | Not available to visiting students |
| Credit level (Normal year taken) | SCQF Level 11 (Postgraduate) |
Credits | 15 |
| Home subject area | Mathematics |
Other subject area | Financial Mathematics |
| Course website |
None |
Taught in Gaelic? | No |
| Course description | This course will introduce students to the way financial markets and institutions function in practice, with particular emphasis on equities and bonds. This will provide the context of underlying finance theory into which the mathematics will fit. |
Entry Requirements (not applicable to Visiting Students)
| Pre-requisites |
|
Co-requisites | |
| Prohibited Combinations | |
Other requirements | MSc Financial Mathematics students only. |
| Additional Costs | None |
Course Delivery Information
|
| Delivery period: 2014/15 Semester 1, Not available to visiting students (SS1)
|
Learn enabled: No |
Quota: None |
|
Web Timetable |
Web Timetable |
| Course Start Date |
15/09/2014 |
| Breakdown of Learning and Teaching activities (Further Info) |
Total Hours:
150
(
Lecture Hours 22,
Summative Assessment Hours 2,
Programme Level Learning and Teaching Hours 3,
Directed Learning and Independent Learning Hours
123 )
|
| Additional Notes |
Examination takes place at Heriot-Watt University.
|
| Breakdown of Assessment Methods (Further Info) |
Written Exam
80 %,
Coursework
20 %,
Practical Exam
0 %
|
| No Exam Information |
Summary of Intended Learning Outcomes
! know the principles of the valuation of shares and bonds;
! be able to apply certain analytical techniques regarding shares and bonds;
! understand the sources of bond risk and the factors affecting bond prices;
! have the ability to critically evaluate the performance of an equity fund manager;
! understand the context within which market professionals work;
! have some familiarity with the main financial markets and instruments trades;
! have some familiarity with the investment industry;
! understand the role of the various institutions involved in financial markets;
! be able to write a coherent essay in a way which demonstrates that they have understood the material;
! demonstrate the ability to learn independently;
! manage time, work to deadlines and prioritise workloads; |
Assessment Information
| See 'Breakdown of Assessment Methods' and 'Additional Notes' above. |
Special Arrangements
| MSc Financial Mathematics students only. |
Additional Information
| Academic description |
Not entered |
| Syllabus |
I. Introduction to Financial Markets
Introduction.
Institutional investors.
Interest rate calculations.
Equities.
Portfolio Theory.
Efficient markets.
Market indices.
Portfolio performance measurement.
II. Bond Markets
Overview of fixed-income securities.
Bond mathematics.
Concepts of duration and convexity and use in portfolio management.
Term stucture of interest rates and alternative theories.
Index-linked securities. |
| Transferable skills |
Not entered |
| Reading list |
Bodie, Z., Kane, A. & Marcus, A.J. (2009). Investments 8th Edition. McGraw-Hill.
Adams, A.T., Booth, P.M., Bowie, D.C. & Freeth, D.S. (2003). Investment Mathematics. Wiley.
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| Study Abroad |
Not entered |
| Study Pattern |
Not entered |
| Keywords | FM |
Contacts
| Course organiser | Dr Sotirios Sabanis
Tel: (0131 6)50 5084
Email: |
Course secretary | Dr Jenna Mann
Tel: (0131 6)50 4885
Email: |
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