The course provides students with an understanding of the pricing and risks of financial securities, both individually and in portfolios. The international context of investment is also reflected in the module. The CAPM and APT are discussed as are various models for valuing options and futures. The use of options and futures in speculative activities and risk management will also be considered.
At the end of the course you should be able to:
discuss and analyse risk in financial markets
discuss the strengths and weaknesses of various pricing models
discuss and apply portfolio theory to determine efficient frontiers
describe and analyse the use of derivatives