Form C4
Heriot-Watt University - Course Descriptor
1. Course
Code
C31CM
2. Course
Title
Capital Markets
3. SCQF
Level
5. School
SML
7. Delivery:
Location &
Semester
Edin
SBC
Orkney
Dubai
IDL
Collaborative Partner
Approved Learning Partner
Sem…1..
Sem….
Sem……..
Sem…1…..
Sem….
Name…………………….....Sem..…...
Name …………………………………Sem………..
6. Course
Co-ordinator
11
4. Credits
15
Professor Andrew Adams
8. Pre-requisites
None
9. Linked Courses
(specify if synoptic)
10. Excluded Courses
11. Replacement Courses
None
None
Code:
12. Degrees for which
this is a core course
Date Of Replacement:
13. The course may be
delivered to:
UG only
PG only
UG & PG
MSc Finance, MSc Investment Management
14. Available as an Elective?
Yes
No
15. Aims
The course is designed to give students a critical understanding of capital markets, the nature of securities traded in them, and the price-setting process.
16. Syllabus
Introduction to capital markets
Compound interest calculations
Portfolio theory and asset pricing: Markowitz Model, CAPM, Arbitrage Pricing Theory
Equities: fundamental and technical analysis, efficient markets, behavioural finance
Fixed-income bonds: bond prices and yields, the term structure of interest rates, managing bond portfolios, index-linked bonds
Securities trading: types of order, types of trading system, The London Stock Exchange, The New York Stock Exchange
Market indices: equity indices, bond indices
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Form C4
Heriot-Watt University - Course Descriptor
17. Learning Outcomes (HWU Core Skills: Employability and Professional Career Readiness)
Subject Mastery
Understanding, Knowledge and Cognitive
Skills
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Personal Abilities
Scholarship, Enquiry and Research (Research-Informed Learning)
understand the purpose of capital markets
critically evaluate portfolio theory and basic asset pricing models
know the principles of the valuation of equities and bonds;
be able to apply certain analytical techniques regarding equities and bonds;
understand the sources of bond risk and the factors affecting bond prices;
understand the procedures for trading securities in international markets, in particular New York and London
know the principles employed in constructing capital market indices.
Industrial, Commercial & Professional Practice
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Autonomy, Accountability & Working with Others
Communication, Numeracy & ICT
understand the context within which market professionals work;
have some familiarity with the main capital markets and instruments traded therein;
have some familiarity with the investment industry;
understand the role of the various institutions involved in capital markets;
be able to write a coherent essay in a way which demonstrates that they have understood the material
demonstrate the ability to learn independently
manage time, work to deadlines and prioritise workloads
18. Assessment Methods
Method
19. Re-assessment Methods
Duration of Exam
Weighting (%)
Synoptic courses?
Method
(if applicable)
Exam
Coursework
2 hours
Duration of Exam
Diet(s)
(if applicable)
80%
20%
Exam
2 hours
20. Date and Version
Date of Proposal
March 2013
Date of Approval by
School Committee
March 2013
Date of
Implementation
September 2013
Version
Number
2/2
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