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Study information

Equity and Fixed Income

Module titleEquity and Fixed Income
Module codeBEF2026
Academic year2025/6
Credits15
Module staff

Mr Adnan Isin (Convenor)

Duration: Term123
Duration: Weeks

11

Number students taking module (anticipated)

60

Module description

This module examines the characteristics, analysis and valuation of equity and fixed-income securities. You will have a sound understanding on a structural overview of financial markets and their operating characteristics. The module provides an overview of equity securities and their different features and establishes the background required to analyse and value equity securities in a global context. Various asset types, market participants, and how assets trade within these markets and ecosystems are presented. The module also covers an introduction to the fixed-income securities and their markets, yield measures, risk factors, and valuation measures and drivers. You will have an overview of industry and individual company analysis and illustrate approaches that are widely used by financial analysts to examine an industry.

Additional Information:

Internationalisation

Internationalisation is embedded in the content of this module. The principles of equity and fixed income are broadly common across most countries.

Sustainability

All of the other resources for this module are available on the ELE (Exeter Learning Environment).

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 foundation for students interested in taking CFA level I exam.

Module aims - intentions of the module

The aim of this module is to enhance your knowledge and understanding of analysis and valuation of equity and fixed-income securities. To this end, the module will cover advanced topics such as market indexes and market efficiency, industry and company analysis, equity valuation and tools, fixed-income securities, markets; elements, valuation, risks and return. Fundamentals of credit analysis will also be examined.

Intended Learning Outcomes (ILOs)

ILO: Module-specific skills

On successfully completing the module you will be able to...

  • 1. Explain the main functions of the financial system and characteristics of a well-functioning financial system.
  • 2. Describe and explain the Efficient Market Hypothesis and behavioural finance arguments.
  • 3. Examine the role of equity securities in creating company value and the relationship between a company’s cost of equity, its return on equity, and investor’s required rate of return.
  • 4. Apply understanding of industry analysis and the relation of industry analysis to company analysis.
  • 5. Understand and apply equity valuation methods and shareholder value creation.
  • 6. Evaluate fixed-income securities and their markets, yield measures, risk factors, and valuation measures and drivers and calculate yields and values of fixed-income securities.
  • 7. Explain benefits of securitisation for economies and financial markets.
  • 8. Describe basic principles of credit analysis and credit-related risks affecting corporate bonds.

ILO: Discipline-specific skills

On successfully completing the module you will be able to...

  • 9. Apply asset-based valuation and demonstrate how these models can be used to estimate value.

ILO: Personal and key skills

On successfully completing the module you will be able to...

  • 10. Develop written communication skills in producing solutions to problems.
  • 11. Work independently to develop effective and efficient self-study techniques.

Syllabus plan

  • Market organisation and structure
  • Security market indexes and market efficiency
  • Overview of equity securities
  • Introduction to industry and company analysis
  • Equity Analysis 1: Industry and financial statement analysis
  • Equity Analysis 2: Shareholder value creation
  • Equity Valuation: concepts , tools and practical applications
  • Fixed-income securities: defining elements
  • Fixed-income markets: issuance trading and funding
  • Introduction to fixed-income valuation
  • Introduction to asset-backed securities
  • Understanding fixed-income risk and return
  • Fundamentals of credit analysis

Learning activities and teaching methods (given in hours of study time)

Scheduled Learning and Teaching ActivitiesGuided independent studyPlacement / study abroad
321180

Details of learning activities and teaching methods

CategoryHours of study timeDescription
Scheduled learning and teaching activities20Lectures
Scheduled learning and teaching activities2Revision
Scheduled learning and teaching activities10Tutorials
Guided independent study118Reading, research; preparation for lectures, tutorials; preparation for assessments.

Formative assessment

Form of assessmentSize of the assessment (eg length / duration)ILOs assessedFeedback method
Weekly tutorial problems for discussion3 hrs preparation by students/1 hr in-class discussion1-11In class and suggested solutions on ELE

Summative assessment (% of credit)

CourseworkWritten examsPractical exams
30700

Details of summative assessment

Form of assessment% of creditSize of the assessment (eg length / duration)ILOs assessedFeedback method
Applied coursework (group study + presentation) 30Applied exercise/assignment (30% presentation and 70% written content (design, fluidity, storytelling, and diligence - 3,000 words)1-5, 10 and 11Feedback comments during office hours as needed
Final exam702.5 hours1-11Suggested solutions; Students will be offered opportunity to view scripts

Details of re-assessment (where required by referral or deferral)

Original form of assessmentForm of re-assessmentILOs re-assessedTimescale for re-assessment
Applied coursework (group study + presentation) (30%)3,000 words written individual assignment (30%)1-5, 10 and 11August/re-assessment period
Final exam (70%)Final exam (70%, 2.5 hours)1-11August/re-assessment period

Re-assessment notes

Where you have been referred/deferred for an assessment, you will have the opportunity to undertake the assessment during the August examination period. You will not be allowed to refer an assessment component if the total of both assessment components result in you passing the module (i.e. at least 40%). In the event of referral, you will only be reassessed on the component that you failed.

Indicative learning resources - Basic reading

  • Equity and Fixed-Income, CFA® Program Curriculum Level I Volume 5, CFA Institute.
  • Valuation: Measuring and Managing the Value of Companies, 7th Edition, McKinsey & Company Inc., Tim Koller, Marc Goedhart, David Wessels, ISBN: 978-1-119-61092-2
  • Investment Valuation: Tools and Techniques for Determining the Value of Any Asset, 4th Edition., Aswath Damodaran ISBN: 978-1-394-25461-3, December 2024
  • Barbara S. P. (2019) Fixed Income Analysis (CFA Institute Investment Series)

Indicative learning resources - Web based and electronic resources

  • ELE – Faculty to provide hyperlink to appropriate pages

Indicative learning resources - Other resources

Supplementary reading materials are indicated in the references of each lecture.?

Key words search

Equity securities, fixed-income securities, financial markets

Credit value15
Module ECTS

7.5

Module pre-requisites

None.

Module co-requisites

BEF2013

NQF level (module)

5

Available as distance learning?

No

Origin date

05/03/2024

Last revision date

20/01/2025