Introduction to Finance
This module should appeal to students who wish to obtain a better understanding of financial markets. Topics covered include the role of the stock markets and the mechanics of investment, principles of investment, and the present value model of investment.
This is a highly practical module applicable across the globe. The tools (present value, optimal portfolio selection) that are taught in this module can be used to evaluate investment opportunities anywhere in the world.
Lecture notes and other resources are available on ELE (Exeter Learning Environment).
The skills students learn in this module are directly transferable to employment. Present value can be used to evaluate any type of investment (e.g., stock, bonds or new projects) while optimal portfolio selection can be applied to personal financial management or for financial advice. These skills are relevant for jobs in corporate finance, consulting companies and investment banks.
Full module specification
|Module title:||Introduction to Finance|
|Duration of module:||
Duration (weeks) - term 2: |
The aim of this module is to provide an understanding of the functioning of financial markets. A theoretical framework is given to understand how individuals invest in financial markets and how firms decide in which financial market to raise capital.
ILO: Module-specific skills
- 1. demonstrate an understanding of stock and bond markets
- 2. demonstrate a knowledge of UK financial institutions
ILO: Discipline-specific skills
- 3. demonstrate an ability to apply economic analysis to evaluate the performance of financial markets
ILO: Personal and key skills
- 4. demonstrate analytical and problem-solving skills
Learning activities and teaching methods (given in hours of study time)
|Scheduled Learning and Teaching Activities||Guided independent study||Placement / study abroad|
Details of learning activities and teaching methods
|Category||Hours of study time||Description|
|Form of assessment||Size of the assessment (eg length / duration)||ILOs assessed||Feedback method|
Summative assessment (% of credit)
|Coursework||Written exams||Practical exams|
Details of summative assessment
|Form of assessment||% of credit||Size of the assessment (eg length / duration)||ILOs assessed||Feedback method|
|Mid-Term||30||1.5 hours||1-4||Written or oral feedback|
|Examination||70||2 hours||1-4||Written or oral feedback|
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|
|Mid-Term and Exam||2 hour Exam (100%)||1-4||August/September assessment period|
This module will cover the following topics:
- Introduction (Ch.1 of Ross)
- Financial Markets and Institutions (Ch.1 of Ross)
- Managing Financial Health and Performance (Ch.2 and Ch.3 of Ross) Discounted Cash Flow Valuation (Ch.4 of Ross)
- Interest Rates and Bond Valuation (Ch.5 of Ross) Stock Valuation (Ch.6 of Ross)
- The Analysis of Investment Projects (Ch.7 and Ch.8 of Ross) Risk and Return Lessons from Market History (Ch.10 of Ross) The Capital Asset Pricing Model (Ch.11 of Ross)
- Risk, Cost of Capital, and Capital Budgeting (Ch.12 of Ross)
Indicative learning resources - Basic reading
Ross, S., Westerfield, R., Jaffe, J. and Jordan, B. (2011) Corporate Finance: Core Principles and Applications (ISBN: 9780071221160).
Module has an active ELE page?
Last revision date