Nottingham University Business School
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Capital Market Analysis

Please note that the following information may be subject to change.

Module Convenor:  Hang Le

Module Content:
The module examines the equity asset class as an example of a long term, generally risky, financial security. Since semester 2 specialist modules in fixed interest securities, and derivatives are available this module provides only a basic introduction to these other classes of financial instruments. The module looks at the way performance of an investment in equities is characterised, and how such investments have performed in the past. The processes of equity portfolio construction, management and performance measurement are then examined. The perspective adopted is that of the purchaser, not the issuer, of equity.

Any module concerned with capital markets needs, post 2007/2008, to reflect (and to reflect on) the gap between textbook treatments and "the real world". Standard textbook treatments deal with "the efficient markets hypothesis", and "the capital asset pricing model" in a relatively uncritical way, but post 2008 these models have been ridiculed in the financial press as unrealistic. This difference of opinion is examined in the module.

Module Aims:
The module aims to introduce students to the characteristics of the equity asset class, to identify relevant data sources for returns from individual equities and equity markets, to explain how pattern in returns can be investigated, to show how equities can be combined in portfolios, and to show how the performance of portfolios and portfolio managers can be measured.

Module Assessment:
2 Hour Examination (75%); Group Coursework (2,500 words) (25%)

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