Modules | Management School | University of Liverpool

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	Asset Pricing Theory
Code	ACFI803
Coordinator	Dr A Gazi Finance and Accounting Adnan.Gazi@liverpool.ac.uk
Year	CATS Level	Semester	CATS Value
Session 2025-26	Level 7 FHEQ	First Semester	20

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	12					36
Timetable (if known)
Private Study							164
TOTAL HOURS							200

Assessment
EXAM	Duration	Timing (Semester)	% of final mark	Resit/resubmission opportunity	Penalty for late submission	Notes
Examination Reassessment Opportunity: Yes Penalty for Late Submission: Standard UoL penalty applies Anonymous Assessment: Yes	3		50
CONTINUOUS	Duration	Timing (Semester)	% of final mark	Resit/resubmission opportunity	Penalty for late submission	Notes
Individual assignment Reassessment Opportunity: Yes Penalty for Late Submission: Standard UoL penalty applies Anonymous Assessment: Yes	0		50

Aims

This module aims to:

Provide students with foundational understanding of asset pricing theories;

Help students to develop knowledge/skills in formulating and solving asset pricing theoretical models;

Equip students with solid theoretical foundations of asset pricing and enable students to conduct theoretically sound empirical asset pricing research.

Learning Outcomes
(LO1) Students will be able to demonstrate advanced understanding of the key theories in the field of asset pricing and their connections.
(LO2) Students will be able to critically evaluate existing theoretical studies in the field of asset pricing.
(LO3) Students will be able to apply key modelling frameworks learned in the module to formulate new research questions.
(LO4) Students will be able to demonstrate mathematical skills for solving asset pricing models.
(LO5) Students will be able to formulate testable hypotheses for empirical asset pricing studies.
(S1) Organisation skills Developed via lectures, seminars and individual research assignment.
(S2) Problem solving and decision making skills Developed via lectures, seminars and individual research assignment.
(S3) Verbal and written communication Developed via the individual research assignment and presentation.
(S4) Numeracy Developed via the individual research assignment and training in model solving.
(S5) Ethical awareness Students will enhance their ethical awareness by reflecting how research including their own is consistent with the principles of research ethics, integrity and open science and learning how to resolve issues and navigate challenges through in class work and self-study.
(S6) International awareness International issues will be covered in related class activities.
(S7) Digital skills Students will have opportunities to improve their digital skills. Students will demonstrate skills in the use of software applications and digital methods including word processing and using the internet and other digital platforms for information searches in the course of researching and presenting coursework.

Teaching and Learning Strategies

Lectures x 24 hours (2 hours per week)

Seminars x 12 hours (1 hour per week)

Self-directed learning x 164 hours
Self-directed learning hours will be spent on class preparation and revision of the weekly topics, research activity in preparation for the presentation, coursework and the final exam, and reflecting on implications for own research.

Syllabus

Topic 1: Choice under Uncertainty (Campbell ch. 1-2)

Topic 2: Stochastic Discount Factor (Cochrane ch. 3-4, Campbell ch. 4)

Topic 3: Consumption-Based Asset Pricing (Campbell ch. 6, Cochrane ch. 1-2)

Topic 4: Factor Models (Cochrane, ch. 5-9, Campbell ch. 3 &9)

Topic 5: Production-based Asset Pricing (Campbell, ch. 7)

Topic 6: Fixed Income Securities (Cochrane, ch. 19 & Campbell, ch. 8)

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