Global Financial Markets module (BU51013)

You will be introduced to key finance principles that govern the behaviour of financial agents and global financial markets.

Built on the framework of modern finance theory, the module is ideal for students seeking a foundational understanding of finance in preparation for studying more specialised financial topics.

What you will learn

In this module, you will:

• understand risk, return, and the historical record
• discover mean-variance portfolio analysis
• be introduced to the Capital Asset Pricing Model (CAPM)
• explore stock markets and equity valuation
• discuss various methods for stock valuation
• learn about bond prices and yields
• understand the term structure of interest rates

By the end of this module, you will be able to:

• understand risk and the importance of diversification
• discuss fundamentals of portfolio theory
• apply various stock valuation methods, including dividend discount models, financial ratio analysis, and free cash flow valuation
• understand arbitrage and its application in asset pricing
• grasp the sensitivity of bond prices to changes in interest rates

Assignments / assessment

• class test (20%)
• group assignment (20%)
• discussion forums and weekly quizzes (10%)
• final exam (50%)

Teaching methods / timetable

This module employs the flipped-classroom teaching method, seamlessly integrating pre-recorded videos, interactive tutorial sessions, group work, and independent study for a comprehensive learning experience.

You should expect to attend weekly tutorials and to complete a variety of activities such as watching the pre-recorded videos, reading, attempting practise questions and weekly quizzes, and contributing to discussion boards.

There are 9 weeks of teaching. For this module, the exact dates of teaching and/or reading weeks are to be confirmed.