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Module

FNC2001 : Asset Pricing and Portfolio Investment (Inactive)

  • Inactive for Year: 2024/25
  • Module Leader(s): Mr David Ormston-Simpson
  • Owning School: Newcastle University Business School
  • Teaching Location: Newcastle City Campus
Semesters

Your programme is made up of credits, the total differs on programme to programme.

Semester 1 Credit Value: 10
Semester 2 Credit Value: 10
ECTS Credits: 10.0
European Credit Transfer System

Aims

This module provides opportunities for learning about how prices of financial assets, predominantly stock and bonds, are determined on their respective markets, and what practical lessons can be learned from that knowledge. It offers an introduction to portfolio theory and asset diversification, covers models of rational asset pricing, pricing and management of bond portfolios, and concludes with the methods of evaluation of securities investment outcomes.

Outline Of Syllabus

1. Financial securities and financial markets: an overview
2. Portfolio analysis: The mean-variance portfolio theory and selecting the optimal portfolio
3. Models of equilibrium in the capital markets
4. The efficient market hypothesis
5. Asset valuation techniques
6. Pricing of bonds and management of bond portfolio
7. Portfolio management and performance evaluation
8. Current topics in asset pricing

Teaching Methods

Teaching Activities
Category Activity Number Length Student Hours Comment
Scheduled Learning And Teaching ActivitiesLecture152:0030:00PIP lectures/live synchronous
Guided Independent StudyAssessment preparation and completion174:0074:00As a specialist, research-led module, the material covered is broad and complex in nature
Guided Independent StudyDirected research and reading156:0090:00Directed pre/post lecture reading. Specialist, research-led module, coverage is broad and complex.
Scheduled Learning And Teaching ActivitiesSmall group teaching61:006:00PIP seminars/live synchronous
Total200:00
Teaching Rationale And Relationship

Teaching and learning comprises a mixture of structured guided learning to raise awareness of key concepts and topics, which is supported via scheduled small group sessions to explore further via application/critique. Formative assessment and feedback supported via small group sessions.

Assessment Methods

The format of resits will be determined by the Board of Examiners

Exams
Description Length Semester When Set Percentage Comment
Written Examination1802A100N/A
Formative Assessments

Formative Assessment is an assessment which develops your skills in being assessed, allows for you to receive feedback, and prepares you for being assessed. However, it does not count to your final mark.

Description Semester When Set Comment
Prob solv exercises1MParticipation in small group classes provides opportunity to evaluate understanding via comparison to model answers and discussion
Prob solv exercises2MParticipation in small group classes provides opportunity to evaluate understanding via comparison to model answers and discussion
Essay2MDraft essay plan based on questions from a sample exam paper submitted for comment/feedback
Assessment Rationale And Relationship

The examination will assess the ability to explain, apply and critique concepts/models from the relevant areas of finance and, as such, provides an unambiguous test of the module learning outcomes.

Formative feedback is available to students via a number of routes. Primarily, students can also obtain feedback through participation in small group classes, where their solutions/answers to the pre-set questions/problems will be discussed. Students will further have the opportunity to submit for feedback extended essay plans based on questions from a sample exam paper.

Reading Lists

Timetable