Core modules and electives
The economics modules apply theories and methodologies to finance, while the finance modules provide the underlying economic principles of financial practice.
This module covers the theory and practice of valuing claims to uncertain cash flows; for example, stocks and stock options, bonds, and foreign exchange instruments. It covers standard material such as CAPM and the Black-Scholes formula, and some advanced material such as consumption-CAPM and pricing formulas for 'exotic options'. Half of the module is dedicated to the application of advanced statistical methods to the area of asset pricing and to practical work with real-world data.
You will learn the fundamental principles of financial accounting, the valuation of firms' assets and the determinants of firms' financial structures. The module covers key components of firms' financial decisions and the operation of financial markets, including new issues of securities, debt, and dividend policy. You will learn about the relevance of different financial institutions to the financing of firms, the takeover process, corporate restructurings, and financial distress.
This module provides students with a background in the fundamentals of empirical modelling and testing in finance. It will introduce you to modern financial econometrics providing appropriate techniques for empirical investigation in financial economics where you will gain a better understanding of crucial concepts like risk, evidence, and prediction.
Microeconomics is the study of how financial and commercial frameworks and conditions impact on individual situations and business units. In this module, you will learn to apply the basic tools of market and firm analysis, game theory, incentive theory, and auctions. In addition, the module will provide an introduction to fundamental ideas in macroeconomics, reinforced by lectures from leading policy experts.
In addition to these four core modules, all students will take an Ethics and Finance course in Michaelmas Term.
The Ethics and Finance course engages students with theory and practice. It offers the opportunity to interact with practitioners on an ethical topic and write a case study from real world data.
You can select a total of five electives to tailor your learning experience and expand your knowledge in areas important for your career.
You can substitute one elective with a 10,000 word project addressing a question of academic interest or practical significance.
This elective will cover methods to establish value and increase value, focusing on areas of business where getting valuation correct is of critical importance (M&A, private equity transactions, project financing, etc).
Financial crises and risk management
This module focuses on understanding financial crises' and learning risk management techniques and tools to apply to real-world situations.
Financial markets trading
You will learn how to manage risk and your investors, and understand the market dynamics and participants.
Information and communication in finance
This module teaches the strategic motives for market players to acquire and communicate information. It uses economic theory to improve communication and information production.
Identification in finance and social sciences
You will learn how to deploy the techniques of identification of causation, as opposed to correlation, in almost any circumstances and learn how to use a variety of tools, including RCTs, to carry out your own evaluations.
This elective will focus on investment and finance, real estate development in private equity and social enterprise and also an introduction into PropTech.
Behavioural and experimental economics
This module will focus on formal methods, experimental evidence and empirical evidence, as well as cutting-edge research, focuses on papers rather than textbooks.
The nature of the corporation
You will learn how to create, lead, structure and manage the most successful enterprises and corporations in the world. This module will cover topics such as entrepreneurship and emerging economies, accounting for corporate purpose and mutuality in business.
This module covers the foundation principles of asset management and modern topics in asset management. You will study in detail three types of assets: mutual funds, exchange-traded funds, and hedge funds.
Cases in finance and investments
You will analyse real cases and modeling in finance and investments in topics such as leveraged finance, distress and restructuring, corporate M&A and financial sponsors and project and infrastructure finance.
In this elective module, you will learn the process of how entrepreneurs and investors create value, examine how entrepreneurs strategise about fundraising, and how investors evaluate business plans.
Mergers, acquisitions and restructuring
This module will give you real insights into the M&A process and understand the motives, strategy, regulation, valuation, tactics, deal-making, shareholder engagement, and integration.
This elective develops analytical frameworks useful in understanding current issues of macro performance and capital flows in the international economy. The focus will be on the interdependent nature of these issues in a globalised world.
Topics in advanced econometrics
You will focus on multiple comparisons and the procedures for comparing different economic and financial forecasting methods, as well as model averaging where you will examine ways to improve trading strategies.
You will learn about this industry and more generally, to help you understand this fascinating, fast-growing, and often controversial financial sector.
Continuous time finance
This module will introduce you to stochastic calculus and show how it can be applied to the pricing and hedging of financial contracts, such as stock and interest rate derivatives.
Fixed income and derivatives
You will develop the analytical tools, based on the theories from the core finance courses, to understand and price fixed income financial instruments and derivatives.