International Financial Markets
Rhedir gan Bangor Business School
15.000 Credyd neu 7.500 Credyd ECTS
Trefnydd: Prof Owain ap Gwilym
To provide an introduction to finance theory, and its practical applications for investors, analysts and portfolio managers.
An overview of financial markets and instruments; Review of the concepts of risk and return; Portfolio theory and diversification; The capital asset pricing model; Other asset pricing models; Efficient markets, behavioural finance and anomalies; Hedging, speculation and arbitrage; Foreign exchange and derivative markets; Option characteristics and option pricing; Forwards and futures.
Displays a basic understanding of the main types of financial instrument and pricing models.
Displays a sound understanding of the main types of financial instrument and pricing models, and an ability to write analytically on specific issues.
Demonstrates a critical approach towards the appreciation of the main types of financial asset pricing models, and demonstrates the ability to evaluate the implications of pricing models, illustrating arguments through the use of relevant supporting evidence drawn from the established literature.
Demonstrate a good understanding of the pricing of the main financial assets traded in international financial markets.
Apply finance theory to portfolio selection and asset pricing.
Demonstrate an awareness of the implications of finance theory for best practice in investment strategy and portfolio management.
Demonstrate a good understanding of the derivative and foreign exchange markets, including the roles of hedging, speculation and arbitrage.
Critically evaluate empirical evidence concerning the operation of international financial markets.
Strategaeth addysgu a dysgu
One 2-hour lecture per week.
One 1-hour workshop per week.
- Llythrennedd - Medrusrwydd mewn darllen ac ysgrifennu drwy amrywiaeth o gyfryngau
- Rhifedd - Medrusrwydd wrth ddefnyddio rhifau ar lefelau priodol o gywirdeb
- Defnyddio cyfrifiaduron - Medrusrwydd wrth ddefnyddio ystod o feddalwedd cyfrifiadurol
- Hunanreolaeth - Gallu gweithio mewn ffordd effeithlon, prydlon a threfnus. Gallu edrych ar ganlyniadau tasgau a digwyddiadau, a barnu lefelau o ansawdd a phwysigrwydd
- Archwilio - Gallu ymchwilio ac ystyried dewisiadau eraill
- Adalw gwybodaeth - Gallu mynd at wahanol ac amrywiol ffynonellau gwybodaeth
- Sgiliau Rhyngbersonol - Gallu gofyn cwestiynau, gwrando'n astud ar atebion a'u harchwilio
- Dadansoddi Beirniadol & Datrys Problem - Gallu dadelfennu a dadansoddi problemau neu sefyllfaoedd cymhleth. Gallu canfod atebion i broblemau drwy ddadansoddiadau ac archwilio posibiliadau
- Gwaith Tîm - Gallu cydweithio'n adeiladol ag eraill ar dasg gyffredin, ac/neu fod yn rhan o dîm gweithio o ddydd i ddydd
Sgiliau pwnc penodol
- knowledge of theories and empirical evidence concerning financial management, risk and the operation of capital markets (in cases of degrees with significant finance content).
- Analysis, deduction and induction. Economic reasoning is highly deductive, and logical analysis is applied to assumption-based models. However, inductive reasoning is also important. The development of such analytical skills enhances students' problem-solving and decision-making ability.
- Quantification and design. Data, and their effective organisation, presentation and analysis, are important in economics. The typical student will have some familiarity with the principal sources of economic information and data relevant to industry, commerce, society and government, and have had practice in organising it and presenting it informatively. This skill is important at all stages in the decision-making process.
- An appreciation of the nature of the contexts in which finance can be seen as operating, including knowledge of the institutional framework necessary for understanding the role, operation and function of markets and financial institutions (e.g. the economic, legal, regulatory and tax environment, both national and international; the firm; the capital markets and the public sector).
- A knowledge of the major theoretical tools and theories of finance, and their relevance and application to theoretical and practical problems (e.g. concept of arbitrage and examples of its use; financial mathematics and capital budgeting criteria; informational efficiency; optimal risk sharing; portfolio theory; asset pricing models and the valuation of securities; cost of capital; derivative pricing; risk management; information asymmetry; principal agency relationships; signalling; Fisher separation and capital budgeting criteria; behavioural finance; term structure and the movement of interest rates; determination of exchange rates and financial intermediation).
- An ability to interpret financial data including that arising in the context of the firm or household from accounting statements and data generated in financial markets. The interpretation may involve analysis using statistical and financial functions and procedures such as are routinely available in spreadsheets (eg Microsoft Excel) and statistical packages. It may assume the skills necessary to manipulate financial data and carry out statistical and econometric tests (e.g. estimation and interpretation of asset pricing models; financial modelling and projections; event studies and residuals analysis; elements of time series analysis, such as serial correlation mean reversion, and stochastic volatility).
- An understanding of the relationship between financial theory and empirical testing, and application of this knowledge to the appraisal of the empirical evidence in at least one major theoretical area. The appraisal should involve some recognition of the limitation and evolution of empirical tests and theory (eg the efficient markets hypothesis; anomalies; pricing of derivatives and other securities; bond portfolio management; exchange rates; raising capital and capital structure).
- An understanding of the financing arrangements and governance structures of business entities, and an appreciation of how theory and evidence can be combined to assess the effectiveness and efficiency of such arrangements (e.g. decisions as to sources of finance and financial structure; the pricing of corporate securities; the market for corporate control; corporate governance structures and mechanisms; financial planning and international dimensions of finance).
- An understanding of the factors influencing the investment behaviour and opportunities of private individuals (bonds, equities, and derivatives; risk aversion; risk/return trade-offs; portfolio management and performance measurement; pensions and long term savings; the tax treatment of savings and investments; international diversification; forex risk; objectives of and constraints on institutional investors and advisors).
- An understanding of financial service activity in the economy, and an appreciation of how finance theory and evidence can be employed to interpret these services (for example, information asymmetry, adverse selection and moral hazard could be employed to analyse the fundamental nature of services, such as insurance, pensions, bank lending and consumer credit, and also explore fundamental problems arising in such financial service provision. Efficient market hypothesis could be used to explore evidence for fund manager performance and the effectiveness of equity and bond saving services).
Cyrsiau sy’n cynnwys y modiwl hwn
Gorfodol mewn cyrsiau:
- N3BV: MBA Finance year 1 (MBA/FIN)
- N3DH: MBA Finance (with Incorporated Pre-Masters) year 1 (MBA/FIN1)
- N3CN: MBA Finance (10 month) year 1 (MBA/FIN10)
- N4AP: MSc Accounting and Finance (with Incorporated Pre-Masters) year 1 (MSC/ACCF1)
- N4AG: MSc Accounting and Finance year 1 (MSC/ACCFIN)
- N3AX: MSc Banking and Finance year 1 (MSC/BANKFIN)
- N3CK: MSc Banking & Finance (Chartered Banker) year 1 (MSC/BFCB)
- N3CW: MSc Bank & Fin (Chartered Banking) (with Incorp Pre-Masters) year 1 (MSC/BFCB1)
- N3CS: MSc Banking and Finance (with Incorporated Pre-Masters) year 1 (MSC/BKFIN1)
- N3CT: MSc Finance (with Incorporated Pre-Masters) year 1 (MSC/FIN1)
- N3CM: MSc Finance (10 month) year 1 (MSC/FIN10)
- N3AJ: MSc Finance year 1 (MSC/FINANCE)
- N3BF: MSc Islamic Banking and Finance year 1 (MSC/IBF)
- N3CZ: MSc Islamic Banking & Fin (with Incorporated Pre-Masters) year 1 (MSC/IBF1)
- N3CC: MSc Investment Management year 1 (MSC/IMGT)
- N3CX: MSc Investment Management (with Incorporated Pre-Masters) year 1 (MSC/IMGT1)
- N3CR: MSc Investment Management (10 month) year 1 (MSC/IMGT10)
- N2AY: MSc Management and Finance (with Incorporated Pre-Masters) year 1 (MSC/MANF1)
- N2AO: MSc Management and Finance year 1 (MSC/MANFIN)
Opsiynol mewn cyrsiau:
- N3CH: MA Banking & Finance (Chartered Banker) year 1 (MA/BFCB)
- N3DC: MA Bank & Fin (Chart Bank) (with Incorporated Pre-Masters) year 1 (MA/BFCB1)
- N4AJ: MSc Accounting year 1 (MSC/ACC)
- N4AM: MSc Accounting (with Incorporated Pre-Masters) year 1 (MSC/ACC1)