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 | Equity and Fixed Income | ||
Code | MGTK754 | ||
Coordinator |
Professor C Wese Simen Finance and Accounting C.Wese-Simen@liverpool.ac.uk |
||
Year | CATS Level | Semester | CATS Value |
Session 2023-24 | Level 7 FHEQ | Whole Session | 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 |
14 4 |
18 | |||||
Timetable (if known) | |||||||
Private Study | 132 | ||||||
TOTAL HOURS | 150 |
Assessment |
||||||
EXAM | Duration | Timing (Semester) |
% of final mark |
Resit/resubmission opportunity |
Penalty for late submission |
Notes |
CONTINUOUS | Duration | Timing (Semester) |
% of final mark |
Resit/resubmission opportunity |
Penalty for late submission |
Notes |
Group written assignment Reassessment Opportunity: individual assignment with the same brief. Penalty for Late Submission: Standard UoL penalty applies Anonymous Assessment: No | 0 | 40 | ||||
Individual report Reassessment Opportunity: new assignment with the same brief. Penalty for Late Submission: Standard UoL penalty applies Anonymous Assessment: Yes | 0 | 60 |
Aims |
|
The module aims to: Enable students to critically evaluate the functioning of the primary and secondary markets; Provide students with the knowledge of methodologies used to price equity and fixed income securities; Develop students’ ability to evaluate the risk inherent in the trading of equity and fixed-income securities. |
Learning Outcomes |
|
(LE1) Flexible and adaptable. |
|
(LE2) A team player. |
|
(LE3) An excellent verbal and written communicator. |
|
(LE4) Internationally aware. |
|
(LE5) A leader. |
|
(LO1) Students will be able to demonstrate a systematic understanding, knowledge and critical awareness of the nature of equity securities and current professional practice related to equity markets. |
|
(LO2) Students will be able to apply and critically appraise fundamental analysis to the valuation of equity securities. |
|
(LO3) Students will be able to demonstrate a conceptual understanding of the principles underlying the equity markets and equity security valuation, including hybrids at the forefront of current practice. |
|
(LO4) Students will be able to demonstrate a systematic understanding, knowledge and critical appraisal of professional practice related to fixed income securities. |
|
(LO5) Students will be able to apply knowledge and understanding of applied techniques and methods to analyse yields, risks and valuation for fixed income securities in an uncertain context. |
|
(LO6) Students will be able to demonstrate a conceptual understanding of the principles underlying the yields, risks and valuation of fixed-income securities and the application of current valuation techniques. |
|
(LRE1) A problem solver. |
|
(LRE2) Numerate. |
|
(LRE3) Commercially aware. |
|
(LRE4) Organised and able to work under pressure. |
|
(LRE5) IT literate. |
|
(LRE6) A lifelong learner. |
Teaching and Learning Strategies |
|
The module will be primarily delivered through 8 weekly e-lectures with one core topic covered each week. The key concepts, theories, and applications, will be delivered through a variety of methods including lecture cast. Case studies and media clips will be used to help illustrate the real-world applications of the key concepts. The teaching will also be supported by individual online activities. These include self-assessment quizzes that enable students to evaluate their own learning and receive formative feedback instantaneously. Furthermore, discussion boards will be used to further foster the exchange of ideas, thus deepening the knowledge of students and improving their communication skills. These activities will be moderated by the module instructor. Students will also be directed to key academic and practitioner readings to further develop their learning. Unscheduled directed student hours: 14 hours Students will undertake 4 hours of synchronous activity over the 8 weeks in order to consolidate their knowledge and appreciate the practical applications of the subject matter. This will take place through group and individual sessions which will be moderated by the module instructor. Scheduled directed student hours: 4 hours Self-directed learning hours: 132 hours |
Syllabus |
|
The equity section of this module explores: Characteristics of equity markets and trading mechanisms: IPOs and secondary market trading. Industry and company analysis: peer group, analysis of threats/opportunities. Equity valuation: Fundamental valuation (present value models) vs Relative valuations (comparables). The risk of equity investments: market risk and liquidity risk. The fixed income section of this module explores: Characteristics of fixed-income markets and trading mechanisms: Bond indenture, primary market, and secondary market. Valuation of fixed-income securities: theories of valuation, day count convention, accrued interest, clean and dirty prices, current yields, holding period return, realized compound return. Term structure of interest rates: Bootstrapping the term-structure, fitting the yield curve, spot and forwards, and theories of the term structure of interest rates. The risk of fixed-income securities: In terest rate risk (Duration and Convexity), Credit risk, and Liquidity risk . |
Recommended Texts |
|
Reading lists are managed at readinglists.liverpool.ac.uk. Click here to access the reading lists for this module. |