ULMS Electronic Module Catalogue

The information contained in this module specification was correct at the time of publication but may be subject to change, either during the session because of unforeseen circumstances, or following review of the module at the end of the session. Queries about the module should be directed to the member of staff with responsibility for the module.
Title SECURITY ANALYSIS AND VALUATION
Code ECON825
Coordinator Prof X Cai
Finance and Accounting
X.Cai7@liverpool.ac.uk
Year CATS Level Semester CATS Value
Session 2019-20 Level 7 FHEQ Second Semester 15

Pre-requisites before taking this module (other modules and/or general educational/academic requirements):

 

Modules for which this module is a pre-requisite:

 

Programme(s) (including Year of Study) to which this module is available on a required basis:

 

Programme(s) (including Year of Study) to which this module is available on an optional basis:

 

Teaching Schedule

  Lectures Seminars Tutorials Lab Practicals Fieldwork Placement Other TOTAL
Study Hours 24

10

        34
Timetable (if known)              
Private Study 116
TOTAL HOURS 150

Assessment

EXAM Duration Timing
(Semester)
% of
final
mark
Resit/resubmission
opportunity
Penalty for late
submission
Notes
Examination There is a resit opportunity. Standard UoL penalty applies for late submission. This is an anonymous assessment. Assessment Schedule (When) :Semester 2  120 minutes.    100       
CONTINUOUS Duration Timing
(Semester)
% of
final
mark
Resit/resubmission
opportunity
Penalty for late
submission
Notes
             

Aims

Equity shares:

To provide a knowledge and understanding of the nature of equity securities and equity markets and develop techniques to value equities using fundamental analysis;

Bond market:

To provide a knowledge and understanding of fixed-income securities and their markets , yield measures, risk factors, and valuation measures and drivers;

To develop an ability to determine the yields and values of fixed-income securities;

General asset pricing:

Equity and bond pricing to be integrated into a general asset pricing structure.


Learning Outcomes

(LO1) A systematic understanding, knowledge and critical awareness of the nature of equity securities and current professional practice related to equity markets;

(LO2) The application and critical appraisal of fundamental analysis to the valuation of equity securities, including residuals analysis in complex scenarios;

(LO3) A conceptual understanding of the principles underlying the equity markets and equity security valuation, including hybrids at the forefront of current practice;

(LO4) A systematic understanding, knowledge and critical appraisal of professional practice related to fixed income securities, including structured products and embedded options;

(LO5) The application of knowledge and understanding of applied techniques and methods to analyse yields, risks and valuation for fixed income securities in an uncertain context;

(LO6) A conceptual understanding of the principles underlying the yields, risks and valuation of fixed income securities and the application of current valuation techniques.

(S1) Problem solving skills

(S2) Numeracy

(S3) Commercial awareness

(S4) Communication skills


Teaching and Learning Strategies

Teaching Method 1 - Lecture
Description:
Attendance Recorded: No

Teaching Method 2 - Seminar
Description:
Attendance Recorded: Yes


Syllabus

 

Equity Investments:

Types of equity securities and their benchmarks;

Equity markets: characteristics, institutions and benchmarks;

Fundamental analysis (sector, industry, company) and the valuation of individual equity securities;

Equity market valuation and return analysis;

Special applications of fundamental analysis (residual earnings);

Equity of hybrid investment vehicles.

Fixed Income:

Types of fixed-income securities and their characteristics;

Fixed-income markets: characteristics, institutions and benchmarks;

Fixed-income valuation (sector, industry, company) and return analysis;

Term structure determination and yield spreads;

Analysis of interest rate risk;

Analysis of credit risk;

Valuing bonds with embedded options;

Structured products.

Asset Pricing:

General theory on asset pricing.


Recommended Texts

Reading lists are managed at readinglists.liverpool.ac.uk. Click here to access the reading lists for this module.