Finance and Investment
| Module title | Finance and Investment |
|---|---|
| Module code | BEF1015 |
| Academic year | 2024/5 |
| Credits | 15 |
| Module staff | Mr Adnan Isin (Convenor) |
| Duration: Term | 1 | 2 | 3 |
|---|---|---|---|
| Duration: Weeks | 11 |
| Number students taking module (anticipated) | 214 |
|---|
Module description
This module provides a general overview to the role of financial assets and markets from the perspective of the investment operations. You will gain a broad understanding on the fundamentals of securities and investment under the current economic environment within the financial services industry. The module examines the role of the industry and the main participants that are seen in financial centre around the globe. This module shows how understanding of the disadvantages and advantages and risks associated with financial assets can be provided to support an organisation’s management in investment decision-making and control. Whilst the module assumes no previous mathematical experience, it does assume a fundamental understanding of accounts – therefore BEA1008 is a co-requisite.
Additional Information:
Internationalisation
The content of this module takes an international perspective and draws on examples from a diverse range of businesses.
Sustainability
All of the other resources for this module are available on the ELE (Exeter Learning Environment).
External Engagement
Occasionally there will be guest lectures from Professionals from local accounting firms.
Employability
In this module students will learn skills that are transferable and relevant for jobs in investment banks, corporate finance, and many other industries. This module also provides a good starting point for students interested in taking CFA level I.
Module aims - intentions of the module
This module provides you with a foundational understanding and awareness of financial markets, corporate finance, and main investment products. You will learn the principal theory and instruments of finance and investment, and you will be equipped with the skills needed to solve finance problems using basic mathematical concepts. The module examines the concepts of risk and return, and the uses and application of financial derivatives; it analysis important topics such as time value of money, management of working capital and capital budgeting analysis in the financial decision making process. Capital structure and the costs of capital are also analysed. The module shows how understanding of the risks associated with financial assets can be provided to support an organisation’s management in investment decision-making. This module could be a good starting point for you to take CFA Level I exams.
Intended Learning Outcomes (ILOs)
ILO: Module-specific skills
On successfully completing the module you will be able to...
- 1. Discuss the financial service sector and understand the features of financial assets and markets.
- 2. Apply a broad knowledge of the risk-return paradigm for investment analysis.
- 3. Evaluate investment opportunities using the present value framework.
- 4. Describe the uses and application of derivatives.
- 5. Describe the characteristics of bonds and stocks and explain the main principles and models of valuation.
- 6. Calculate the weighted average cost of capital and understand its implications for capital structure.
ILO: Discipline-specific skills
On successfully completing the module you will be able to...
- 7. Evidence a sound understanding of the financial services sector, corporate finance, and main investment products.
- 8. Use mathematical concepts to solve finance problems and apply investment principles in practical situations.
ILO: Personal and key skills
On successfully completing the module you will be able to...
- 9. Apply written communication, analytical and problem-solving skills.
- 10. Undertake independent study and manage their time.
Syllabus plan
- Assets Classes and Financial Markets
- Quantitative Methods, Financial Risk and Return Concepts
- Bonds: Characteristics and Valuation
- Financial Statement Analysis
- Working Capital Management
- Capital Structure and Capital Budgeting
- Equity Risk Premiums and Cost of Capital
- Equity Valuation Techniques
- Uses and Application of Derivatives
- Contemporary Topics
Learning activities and teaching methods (given in hours of study time)
| Scheduled Learning and Teaching Activities | Guided independent study | Placement / study abroad |
|---|---|---|
| 32 | 118 | 0 |
Details of learning activities and teaching methods
| Category | Hours of study time | Description |
|---|---|---|
| Scheduled Learning and Teaching | 20 | Lectures |
| Scheduled Learning and Teaching Activities | 2 | Revision |
| Scheduled Learning and Teaching Activities | 10 | Tutorials |
| Guided Independent Study | 118 | Reading and research, web based activities |
Formative assessment
| Form of assessment | Size of the assessment (eg length / duration) | ILOs assessed | Feedback method |
|---|---|---|---|
| Weekly problems and questions to aid discussion in tutorials | 2-3 hours for preparation | 1-10 | Tutor run through of questions and suggested solutions |
| Tutorial discussion | 1 hour in-class session | 1-10 | In-class feedback |
| Mock Exam | 2 hours | All | Classroom discussion |
Summative assessment (% of credit)
| Coursework | Written exams | Practical exams |
|---|---|---|
| 0 | 100 | 0 |
Details of summative assessment
| Form of assessment | % of credit | Size of the assessment (eg length / duration) | ILOs assessed | Feedback method |
|---|---|---|---|---|
| Written Exam | 100 | 2 hours | 1-10 | Mark awarded and suggested solutions |
| 0 |
Details of re-assessment (where required by referral or deferral)
| Original form of assessment | Form of re-assessment | ILOs re-assessed | Timescale for re-assessment |
|---|---|---|---|
| Written Exam | Written examination (100%), 2 hours | 1-10 | Referral/deferral period |
Re-assessment notes
Deferral – if you have been deferred for any assessment you will be expected to submit the relevant assessment. The mark given for a re-assessment taken as a result of deferral will not be capped and will be treated as it would be if it were your first attempt at the assessment.
?
Referral – if you have failed the module overall (i.e. a final overall module mark of less than 40%) you will be expected to submit the relevant assessment. The mark given for a re-assessment taken as a result of referral will be capped at 40%
Indicative learning resources - Basic reading
Basic reading:
-
-
Bodie, Z., Kane., & Marcus, A. (2024), Investments (12th Edition), McGraw-Hill
-
Berk,J., DeMarzo, P., & Harford, J. (2019), Fundamentals of Corporate Finance Global Edition, Pearson
Other reading (if interested):
-
Melicher R.W., and Norton E. A. (2017), Introduction to Finance: Markets, Investments, and Financial Management, 17thEdition, John Wiley & Sons.
-
University’s library link:https://ebookcentral.proquest.com/lib/exeter/detail.action?docID=6637754&pq-origsite=primo
-
| Credit value | 15 |
|---|---|
| Module ECTS | 7.5 |
| Module pre-requisites | None |
| Module co-requisites | BEA1008 |
| NQF level (module) | 4 |
| Available as distance learning? | No |
| Origin date | 17/11/2022 |
| Last revision date | 19/11/2024 |
