FINANCIAL SECURITIES ANALYSIS

SHE Level 5
SCQF Credit Points 20.00
ECTS Credit Points 10.00
Module Code MMN324013
Module Leader Sanjukta Brahma
School Glasgow School for Business and Society
Subject Finance and Accounting
Trimester
  • A (September start)

Pre-Requisite Knowledge

None

Summary of Content

The module aims to develop a critical awareness of the financial risks inherent in financial markets and analyse the products which are used to manage these risks. The module will be split into 3 sections. The first section will consider portfolio theory as an introduction to risk, risk aversion, capital allocation between risky assets and risk free assets and then look at the optimal risky portfolio. Section 2 will build upon this by analysing the Capital Assets Pricing Model and Arbitrage Pricing Theory. Section 3 will then move onto an analysis of the financial products utilised concentrating on options, futures, swaps and securitisation.

Syllabus

1: Asset classes and how securities are traded 2: Markowitz Portfolio Theory 3: The Capital Asset Pricing Model and Arbitrage Pricing Theory; 4: Market Efficiency and Behavioural Finance 5: Bond prices and yields 6: Managing Bond Portfolios 7: Equity Valuation Models 8: Options Market 9: Option Valuation 10: Futures Market 11 Swaps 12: Hedge Funds

Learning Outcomes

On successful completion of this module, the student should be able to:1. Comparative analysis of the different types of fund management highlighting advantages and disadvantages.2. Critically analyse the methods of asset pricing available.3. Discuss the merits of the various academic theories of asset pricing.4. Create and justify the selection of various investment portfolios.5. Discuss the derivatives market

Teaching / Learning Strategy

The MSc International Banking Finance and Risk Management programme is geared towards the development of business skills that encourage responsible leadership, internationalisation and professionalism, aiming to engage students in analysis, research and discussion of contemporary, real life issues. The teaching and learning strategy aims to embed these attributes. Face to face contact involves three hours of class contact per week: normally 2 lectures and 1 seminar. Lectures will be used to highlight the key issues in a specific topic and point the way towards relevant journal articles and other appropriate literature. Students will be then expected to prepare for following week's lectures on each topic by engaging in literature searches, undertaking relevant reading and preparing responses to discursive and where necessary, computational questions. The lectures will adopt a variety of teaching styles including seminar style contributions such as group discussion to enhance intellectual, critical and analytical skills. For more applied topics, students will be required to attempt relevant problem or scenario based questions prior to the lectures taking place, providing the basis for deepening professional skills, knowledge and understanding. Module classes are conducted in workshop format providing a mix of tutor led, student led and group learning. Extensive use is made of VLE to complement and support the face to face and independent learning elements of the module as well as enhancing the student learning experience and engagement. The V LE site used as a repository for resources including key readings such as scanned material, journal articles, book chapters, digital book chapters, web-links, embedded video clips but also for interactive forums such as discussion boards and blogs. The teaching and learning strategy includes 8 hours of practicals to complement the face to face delivery of the module and independent learning through such activities as specialist speakers, site visits related to project management and other academic community activities to enhance the learning experience such as an away-day to develop dissertation topics from within the distinct module areas. { 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Indicative Reading

Essential Reading: Bodie, Kane, Marcus,(2009),Investments (8th Ed.) - Boston- McGraw Hill. Recommended Reading: Solnik and McLeavey, Global Investments, 6 th Edition, Pearson Haugen et al. (2001), Modern Investment Theory with Options - 5th Ed. - New Jersey, Prentice Hall. Fabozzi. F.J. (1998),Investment Management - 2nd Ed. - New Jersey, Prentice Hall. Hirschey. M, (2002), Investments Theory and Practice of Investment Management - Fort Worth - Harcourt. Lofthouse, S. (2001), Investment Management - Chichester - Wiley Damodarn, A., (2006), Security Analysis for Investment and Cash Finance - New York - Wiley Damodarn, A. (2001), Investments and Valuations - New York - Wiley Burnstein (2001), Investment Management and Security Analysis - New York - Wiley Fabozzi et al. (2006), Advanced Bond Portfolio Management - New York - Wiley Websites: http://www.aaii.org http://www.bloomberg.com/ European Central Bank: www.ecb.int Bank for International Settlements: www.bis.org Bank of England: www.bankofengland.co.uk British Bankers Association: www.bba.org.uk Chartered Institute of Bankers: www.cib.org.uk Financial Times: www.ft.com Economist: www.economist.com Financial Services Authority: www.fsa.gov.uk Journals: European Financial Management. Financial Management Financial Markets, Institutions in Markets Journal of Alternative Investments Journal of Corporate Finance Journal of Finance Journal of Financial Economics Journal of Financial Intermediation Journal of Financial Markets Journal of Financial and Quantitative Analysis Journal of Financial Research Journal of Fixed Income Journal of International Money and Finance Journal of Investing Journal of Portfolio Management Journal of Risk Finance The Review of Financial Studies Securities and Investment Review

Transferrable Skills

After completion of the course students will have developed the following transferable skills: - analytical and numerical ability; - clear communication, in both written and oral form; - the ability to work independently; - IT skills; - research skills in order to complete coursework.

Module Structure

Activity Total Hours
Seminars (FT) 12.00
Assessment (FT) 44.00
Lectures (FT) 24.00
Practicals (FT) 8.00
Independent Learning (FT) 112.00

Assessment Methods

Component Duration Weighting Threshold Description
Exam (Exams Office) 2.00 70.00 45% Final Examination. Minimum pass mark in each component is 45%. Students must achieve a minimum aggregate of 50% to pass the module
Coursework 1 n/a 30.00 45% Report based on current issues in investment. 2000 words