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Learning Outcomes

Transferable and Generic Skills

Having successfully completed this module you will be able to:

• Able to solve complex problems in finance and portfolio management
• demonstrate numeracy skills;
• Integrate ethical and sustainability considerations into financial decision-making and evaluate their long-term impact.
• evaluate financing decisions;

Subject Specific Intellectual and Research Skills

Having successfully completed this module you will be able to:

• Examine ethical and professional standards in financial markets.
• analyse and value different investment options;
• Value how investors make their choice under certain conditions and uncertainty;
• Evaluate the market efficiency in different financial markets
• interpret financial values;
• Drive the value of risk and return in the stock market and portfolio management;
• value stocks and bonds;

Knowledge and Understanding

Having successfully completed this module, you will be able to demonstrate knowledge and understanding of:

• How investors and firms make their choice of investment under uncertainty and certain conditions
• Analyse the role of ethics and sustainability in financial decision-making, particularly in promoting integrity in financial markets, responsible investing, and climate action.
• how to estimate present and future values of financial instruments;
• the construction of portfolios of risky assets, the relationship between risk and return, and the nature and sources of risk in a stock market context;

(1) Basic Introduction to Finance and Financial Concepts This section will provide basic definitions, and description of concepts involving finance and financial portfolio management. This section will lay the foundation and bases for the module. (2) Time Value of Money, Bond and Stocks This section starts with the study of time of money. Detail attention is provided in how to calculate the value of financial assets and the value of money in the future and the past. The concept of time value of money is also used to see how bonds and stocks are valued and priced. This section is mostly mathematical and involves application of formulas. (3) Value and Capital Budgeting Using the concept of time of money this section further analyses how firms decide several investment projects which one to choose. This section is mostly mathematical and involves application of formulas. (4) Theory of Choice This section will discuss the theory of choice under certain conditions and uncertainty. The section will discuss individual investor’s behaviour and rational choices under uncertainty. The section will further discuss the utility function and risk averseness of the investors. (5) Portfolio and Capital Market Theory This section will discuss and derive the risk and return models applied in portfolio management including the CAPM and APT model of risk and return. This section will explain and derives these models in mathematical detail. (6) Efficient Market Hypothesis This section will discuss the efficient market hypothesis (EMH) in capital markets. Discussion will involve the different forms of EMH, the implications of EMH on portfolio management and EMH and price bubbles. The section will further discuss how to test for the different forms of EMH. (7) Sustainability in Finance This section introduces the role of sustainability in financial decision-making. It emphasises the importance of aligning financial practices with UN’s Sustainable Development Goals. Topics include sustainable finance practices, green bonds, and ESG investing, highlighting how these contribute to long-term environmental and economic goals. (8) Ethics and Professional Conduct in Finance This section introduces the role of ethics and professional conduct in prompting integrity and ethical behaviour in financial markets. This section will provide an overview of the codes and standards set by professional bodies such as the CFA Institute Code of Ethics and Standards of Professional Conduct (Code and Standards) and the GARP Code of Conduct (Code).

The course will consists of 12 weekly 2-hour lectures covering theory and problem solving. PowerPoint slides are used to deliver the relevant material and provide the key concepts and theories. Many lectures will also involve various numerical and quantitative techniques with the aim to enhance the level of understanding and strengthen the quantitative skills of students. Learning activities include: • Numerical exercises in class and for homework • A group assignment • Presentation of findings in class

Formative

This is how we’ll give you feedback as you are learning. It is not a formal test or exam.

Feedback

• Assessment Type: Formative
• Feedback: One to one feedback will be provided if required.
• Final Assessment: No
• Group Work: No

Summative

This is how we’ll formally assess what you have learned in this module.

Referral

This is how we’ll assess you if you don’t meet the criteria to pass this module.

Repeat

An internal repeat is where you take all of your modules again, including any you passed. An external repeat is where you only re-take the modules you failed.