Financial Economics (L1095)

15 credits, Level 6

Spring teaching

You are given an advanced perspective on the microeconomic principles underlying financial markets and financial decision-making.

You learn key concepts including:

  • risk and return
  • asset pricing
  • asset allocation
  • portfolio optimisation
  • financial market equilibrium
  • efficient market hypothesis. 

You also look at arbitrage pricing and pricing of options and futures, and how these can be used to understand investment decisions, and trends in financial markets. 

You must have knowledge of microeconomics, basic calculus, and statistics - and be familiar with using spreadsheet packages such as Microsoft Excel. This is for solving problem sets and developing your analytical techniques in valuation and portfolio optimisation.


69%: Lecture
31%: Seminar


20%: Coursework (Problem set)
80%: Examination (Computer-based examination)

Contact hours and workload

This module is approximately 150 hours of work. This breaks down into about 32 hours of contact time and about 118 hours of independent study. The University may make minor variations to the contact hours for operational reasons, including timetabling requirements.

This module is running in the academic year 2021/22. We also plan to offer it in future academic years. However, we are constantly looking to improve and enhance our courses. There may be changes to modules in response to student demand or feedback, changes to staff expertise or updates to our curriculum. We may also need to make changes in response to COVID-19. We’ll make sure to let our applicants know of material changes to modules at the earliest opportunity.


This module is offered on the following courses: