EC371-6-AU-CO:
Economic Analysis of Asset Prices
2018/19
Economics
Colchester Campus
Autumn
Undergraduate: Level 6
Current
Thursday 04 October 2018
Friday 14 December 2018
15
31 July 2002
Requisites for this module
(EC115 or BE300 or IA156 or MA101) and EC202
(none)
(none)
(none)
(none)
BA L100SK Economics,
BSC L101SK Economics,
BA 5A84 Financial Economics (Including Placement Year),
BA L111 Financial Economics,
BA L118 Financial Economics (Including Foundation Year),
BA L195 Financial Economics (Including Year Abroad),
BSC 0Q64 Financial Economics (Including Placement Year),
BSC L114 Financial Economics,
BSC L117 Financial Economics (Including Foundation Year),
BSC L194 Financial Economics (Including Year Abroad),
BA L147 Financial Economics and Accounting (Including Placement Year),
BA L148 Financial Economics and Accounting,
BA L149 Financial Economics and Accounting (Including Year Abroad)
The module begins with an overview of capital markets and explores limits to the predictability of asset price changes. Modern theories of financial decision-making under uncertainty are examined from the perspective of their application to portfolio decision problems, with an emphasis on mean-variance theory. Mean-variance analysis is then adapted to construct the Capital Asset Pricing Model (CAPM). Following an introduction to Arbitrage Pricing Theory (APT), both models are subjected to empirical testing. The module goes on to review extensions of asset pricing theories to encompass present value relationships, including multi-period consumption and portfolio planning decisions, and thence to study bubbles in financial markets. Finally, students are introduced to theories of asset market microstructure.
Upon successful completion of this course students will have acquired an appreciation of how economic theories help to account for the determination of asset prices. They will able to apply analytical reasoning to problems in asset pricing; to build simple models of asset markets based on those studied in the course; and to interpret the mathematics of these models in economic terms.
Academic skills: EC371 contributes to the development of (i) problem-solving, via the analysis of formal models in finance; (ii) evaluation of statistical applications, in particular, econometric studies of asset prices; (iii) communication and literacy, via term paper preparation; and (iv) research and information gathering, via the identification, selection and acquisition of materials relevant for term papers and for examination preparation.
Other employability skills include the development of (i) awareness of the operation of financial markets in advanced economies; (ii) clear, concise and well organised professional written work; (iii) personal time management, target-setting to achieve the timely completion of term papers and other and other reading assignments, and (iii) reflection on and response to feedback provided for term papers.
No information available.
No information available.
Compulsory for:
Year 3 Students on BA in Financial Economics and BSc in Financial Economics
2 lectures and one (optional) class per week in one term
This module does not appear to have a published bibliography.
Assessment items, weightings and deadlines
| Coursework / exam |
Description |
Deadline |
Coursework weighting |
| Coursework |
EC371 Assignment |
|
|
| Exam |
Main exam: 120 minutes during Summer (Main Period)
|
Additional coursework information
Feedback, including a mark, will be provided for each piece of submitted work (assignment essays) via a feedback sheet. Students are also encouraged to discuss draft assignments prior to submission and also marked work following assessment. Feedback is also provided in weekly office hours as well as towards the end of each lecture, when students answer a “quick question” based on the lecture material. A class is held each week to answer exercises on the previous week’s lecture material. Feedback is then provided with answer guidelines for quick questions and exercises posted for students’ consultation in the EC371 Moodle site. A multiple choice test held during the term enables students to obtain feedback on their progress in gaining a grasp of basic EC371 concepts. Before the final examination feedback is provided on students’ answers to previous years’ examination questions and in revision sessions.
Exam format definitions
- Remote, open book: Your exam will take place remotely via an online learning platform. You may refer to any physical or electronic materials during the exam.
- In-person, open book: Your exam will take place on campus under invigilation. You may refer to any physical materials such as paper study notes or a textbook during the exam. Electronic devices may not be used in the exam.
- In-person, open book (restricted): The exam will take place on campus under invigilation. You may refer only to specific physical materials such as a named textbook during the exam. Permitted materials will be specified by your department. Electronic devices may not be used in the exam.
- In-person, closed book: The exam will take place on campus under invigilation. You may not refer to any physical materials or electronic devices during the exam. There may be times when a paper dictionary,
for example, may be permitted in an otherwise closed book exam. Any exceptions will be specified by your department.
Your department will provide further guidance before your exams.
Overall assessment
Reassessment
Module supervisor and teaching staff
Mr Roy Bailey, email: rbailey@essex.ac.uk.
Mr Roy Bailey
For further information, send an email message to ueco@essex.ac.uk.
Yes
Yes
No
Prof Aditya Goenka
The University of Birmingham
Chair
Available via Moodle
Of 32 hours, 30 (93.8%) hours available to students:
2 hours not recorded due to service coverage or fault;
0 hours not recorded due to opt-out by lecturer(s).
Economics
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