Last modified: 30 Jun 2025 14:16
This course explores the application of asset pricing models in security valuation and portfolio management. It bridges finance theory with quantitative analysis for students pursuing careers in investment and asset management. Prerequisites include a good foundation in economics, finance, statistics, and calculus. The course demands a 10-15 hours’ weekly commitment with a focus on quantitative methods.
| Study Type | Undergraduate | Level | 3 |
|---|---|---|---|
| Term | Second Term | Credit Points | 15 credits (7.5 ECTS credits) |
| Campus | Offshore | Sustained Study | No |
| Co-ordinators |
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This course provides a comprehensive exploration of asset pricing, targeting undergraduate students with a strong inclination towards analytical finance and quantitative analysis. The curriculum is meticulously crafted to delve deep into the theoretical underpinnings and empirical research that shape contemporary asset pricing and investment strategies.
Throughout lectures, students will engage with a wide array of topics, including but not limited to:
Information on contact teaching time is available from the course guide.
| Assessment Type | Summative | Weighting | 75 | |
|---|---|---|---|---|
| Assessment Weeks | Feedback Weeks | |||
| Feedback |
2-hour Exam worth 75% of overall grade. |
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| Knowledge Level | Thinking Skill | Outcome |
|---|---|---|
| Conceptual | Understand | Demonstrate knowledge and understanding of fundamental asset pricing theories, including CAPM and mean-variance optimization; analyse the risk-return relationship in financial markets. |
| Conceptual | Understand | Evaluate the efficiency of financial markets and identify sources of market inefficiency and the influence of behavioural biases. |
| Conceptual | Understand | Analyse the unique challenges in valuing private companies and apply appropriate valuation techniques. |
| Conceptual | Understand | Apply performance evaluation techniques to assess portfolio management strategies. |
| Conceptual | Understand | Understand the term-structure of interest rates and apply it to bond pricing and analysing yield curves. |
| Procedural | Apply | Apply discounted cash flow models and other valuation models for equity valuation; estimate stock beta using statistical software; assess the strengths and limitations of each valuation model. |
| Procedural | Apply | Utilise cross-sectional and time-series models to analyse and predict stock returns. |
| Assessment Type | Summative | Weighting | 25 | |
|---|---|---|---|---|
| Assessment Weeks | Feedback Weeks | |||
| Feedback |
1-hour Class Test worth 25% of overall grade. |
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| Knowledge Level | Thinking Skill | Outcome |
|---|---|---|
| Conceptual | Understand | Apply performance evaluation techniques to assess portfolio management strategies. |
| Conceptual | Understand | Understand the term-structure of interest rates and apply it to bond pricing and analysing yield curves. |
| Conceptual | Understand | Analyse the unique challenges in valuing private companies and apply appropriate valuation techniques. |
| Conceptual | Understand | Evaluate the efficiency of financial markets and identify sources of market inefficiency and the influence of behavioural biases. |
| Procedural | Apply | Utilise cross-sectional and time-series models to analyse and predict stock returns. |
There are no assessments for this course.
| Assessment Type | Summative | Weighting | 100 | |
|---|---|---|---|---|
| Assessment Weeks | Feedback Weeks | |||
| Feedback |
2-hour Resit Exam. Resit marks are not released until the resit board takes place - this is usually August. |
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| Knowledge Level | Thinking Skill | Outcome |
|---|---|---|
|
|
||
| Knowledge Level | Thinking Skill | Outcome |
|---|---|---|
| Conceptual | Understand | Demonstrate knowledge and understanding of fundamental asset pricing theories, including CAPM and mean-variance optimization; analyse the risk-return relationship in financial markets. |
| Procedural | Apply | Apply discounted cash flow models and other valuation models for equity valuation; estimate stock beta using statistical software; assess the strengths and limitations of each valuation model. |
| Conceptual | Understand | Analyse the unique challenges in valuing private companies and apply appropriate valuation techniques. |
| Procedural | Apply | Utilise cross-sectional and time-series models to analyse and predict stock returns. |
| Conceptual | Understand | Evaluate the efficiency of financial markets and identify sources of market inefficiency and the influence of behavioural biases. |
| Conceptual | Understand | Understand the term-structure of interest rates and apply it to bond pricing and analysing yield curves. |
| Conceptual | Understand | Apply performance evaluation techniques to assess portfolio management strategies. |
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