Course handbook MSc in Finance - Cass Business School · MSc in Finance has been developed. The course fully integrates theory and practice and enables students to specialise in either

September 2011

Course handbookMSc in Finance

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Table of Contents

Section 1 MSc in Finance ......................................................... 2

Course Director’s Welcome .................................................................................................... 2

Section 2 Programme Information ............................................ 3

Programme Aims .................................................................................................................... 3

Programme Structure .............................................................................................................. 4

Assessment Matrix .................................................................................................................. 5

Term Dates and Examination Periods .................................................................................... 6

Section 3 Module Descriptions .................................................. 7

Module Descriptions ............................................................................................................... 7

Elective Information .............................................................................................................. 41

Section 4: Assessment Regulations and Regulations for the Award of the Degree ............................................................... 42

Assessment Calculations ...................................................................................................... 42

Failure and Re-sitting of Modules ......................................................................................... 42

Coursework ........................................................................................................................... 43

Peer Assessment .................................................................................................................. 43

Degree Requirements ........................................................................................................... 44

Award of Distinction .............................................................................................................. 44

Award of Merit ....................................................................................................................... 44

Postgraduate Diploma .......................................................................................................... 44

Periods of Registration .......................................................................................................... 45

Grade Related Criteria .......................................................................................................... 46

Section 5 Additional Information .............................................. 47

The Course Office ................................................................................................................. 47

Virtual Learning Environment ................................................................................................ 47

Personal Tutors ..................................................................................................................... 47

Staff Contact Details ............................................................................................................. 47

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Section 1 MSc in Finance

Course Director’s Welcome

It gives me a great pleasure to welcome you to Cass Business School.

This handbook provides all the information you need about the MSc in Finance. It covers administrative procedures, assessment and regulations, timetables and subject outlines. You will need to refer to the handbook throughout the year. Please keep it in a safe place.

We aim to provide you with an academically rigorous and professionally relevant education that will serve your career needs for a long time in the future. The next 11 months involve lots of hard work, but plenty of fun as well. Please try to make the most of it.

My colleagues and I will be delighted to help in any way we can. Please come to see me whenever you wish to discuss any aspect of your studies.

With best wishes for a good year,

Dr Richard Payne Course Director of MSc in Finance

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Section 2 Programme Information

Programme Aims

The world of finance, with its innumerable career opportunities and continuous demand for sharper, brighter and more adaptable employees, is an attractive choice for many top-calibre graduates with numerical skills. Companies are now looking for a combination of high-level interpersonal skills, in-depth knowledge and analytical skills to enable them to succeed in this rapidly changing and ever-more complex environment. It is with this in mind that the MSc in Finance has been developed.

The course fully integrates theory and practice and enables students to specialise in either investments or corporate finance. Top-rated academic teaching from the Cass Business School provides a broad theoretical knowledge base, while a strong practical orientation is delivered by professionals from major firms in the City of London. It provides students with:

a thorough and comprehensive grasp of the principles and applications of finance, together with enduring technical and conceptual skills;

a broad-ranging experience of quantitative techniques relevant to finance; a focus on financial issues in many industry sectors; excellent opportunities to make contacts within the City of London; a genuinely international, multicultural perspective with a global focus; and a highly flexible qualification suitable for a wide range of career openings in the

financial sector.

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Programme Structure Term 1 Core subjects for all students:

Theory of Finance Statistics in Finance Financial Reporting Corporate Finance & Valuation

By the end of Week 6 you are required to select the specialisation route you wish to follow, the Investments stream or the Corporate Finance stream (please see below).

Term 2

Core subject for all students:

Research Project Management Skills

Core subjects for the Investments stream:

Asset Management Derivatives & Risk Management Fixed Income International Finance

Core subjects for the Corporate Finance stream:

Corporate Finance & Restructuring Corporate Risk Management Financial Statement Analysis Mergers & Acquisitions and Private Equity Term 3 Option 1: five specialist electives Option 2: Business Research Project and one specialist elective

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Assessment Matrix

Module Title Module Code CreditsAssessment weightings used to calculate module mark

Coursework Examination Term 1 Corporate Finance & Valuation SMM467 15 25% 75% Financial Reporting SMM249 15 25% 75% Statistics in Finance SMM248 15 25% 75% Theory of Finance SMM148 15 25% 75% Term 2 – Investments Stream Asset Management SMM201 15 25% 75% Derivatives & Risk Management SMM200 15 25% 75% Fixed Income SMM516 15 25% 75% International Finance SMM113 15 25% 75% Research Project Management Skills SMM522 10 100% Term 2 - Corporate Finance Stream Corporate Finance & Restructuring SMM464 15 25% 75% Corporate Risk Management SMM250 15 25% 75% Financial Statement Analysis SMM147 15 25% 75% Mergers & Acquisitions and Private Equity SMM236 15 50% 50% Research Project Management Skills SMM522 10 100% Term 3 - Option 1 Elective 1 SMMXXX 10 100% Elective 2 SMMXXX 10 100% Elective 3 SMMXXX 10 100% Elective 4 SMMXXX 10 100% Elective 5 SMMXXX 10 100% Term 3 - Option 2 Business Research Project SMM527 40 100% Elective 1 SMMXXX 10 100% Degree Total 180

As a general rule 2.4 CAPS* credits equals approximately 1 ECTS* based on an MSc programme of 180 credits.

ECTS (European Credit Transfer and Accumulation System)

CAPS (Credit Accumulation of Programme Specification)

Where a module is assessed using group coursework, 20% of the mark for the component will be determined by peer assessment. Please refer to section four for details.

Note: Coursework may take the form of an individual assignment, group assignment or invigilated test.

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Term Dates and Examination Periods

Induction

12th September 2011 – 23rd September 2011

Term One

26 September 2011 - 02 December 2011

Term One Examinations

09 January 2012 - 20 January 2012 Term Two

23 January 2012 - 30 March 2012

Term Two Examinations

23 April 2012 - 04 May 2012 Term Three

07 May 2012 - 15 June 2012

Term Three Assessments

25 June 2012 - 06 July 2012 Term One and Term Two Resit Examinations (including Term Three resit tests) 13th August – 24th August 2012 Research Project Submission Date

01 September 2012

Students are expected to be in attendance at lectures and other classes during term time, attend all invigilated tests and examinations. Students should not therefore make travel arrangements during term time. Any absence from any form of assessment, which does not constitute valid extenuating circumstances, will result in the student resitting the module as a second attempt

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Section 3 Module Descriptions

Module Descriptions

Asset Management Core Investments Stream

Business Research Project Optional

Corporate Finance & Restructuring Core Corporate Finance Stream

Corporate Finance & Valuation Core

Corporate Risk Management Core Corporate Finance Stream

Derivatives & Risk Management Core Investments Stream

Financial Reporting Core

Financial Statement Analysis Core Corporate Finance Stream

Fixed Income Core Investments Stream

International Finance Core Investments Stream

Mergers & Acquisitions and Private Equity Core Corporate Finance Stream

Research Project Management Skills Core

Statistics in Finance Core

Theory of Finance Core

Please note that the following module descriptions are indicative only. Detailed reading lists and module assessment requirements will be issued by the subject leader(s) at the beginning of each module.

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ASSET MANAGEMENT SMM 201

MODULE LEADER Dr Aneel Keswani

SESSIONS 30 hours – 10 x 3- hour sessions MODULE ASSESSMENT The module is assessed by coursework and a final examination in April. The coursework counts for 25% and the exam for 75% of the overall module mark. Where assessment is by group coursework, 20% of the coursework mark will be determined by Peer Assessment.

EDUCATIONAL AIMS

The module is a follow-up to Theory of Finance. Its aim is to provide a thorough understanding of the issues that are relevant to the asset management industry with special emphasis on portfolio performance evaluation. LEARNING OUTCOMES On completing the module the participants will:

understand key asset pricing anomalies that are inconsistent with market efficiency and the CAPM;

understand the role of size and value factors in determining security returns and the Fama French 3 factor model (market, size and value factors);

understand the role of momentum in determining security returns and the Carhart four factor model (market, size, value and momentum factors);

know how to calculate various measures of risk-adjusted performance including Sharpe ratio, M-squared, Treynor ratio, Jensen's 1 factor alpha, Fama-French 3 factor alpha and Carhart 4 factor alpha;

know different ways to measure fund manager timing ability; and understand key features of the different parts of the money management industry in

particular understand their structure, their performance, their fees and the advantages and disadvantages to investors of investing in these different sectors.

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SYLLABUS

TOPIC 1: Overview of the fund management industry

Asset classes Types of fund management vehicle Statistical overview of the asset management industry

TOPIC 2: Return Predictability and market efficiency

Efficient Market Hypothesis Types of market efficiency Consequences of EMH Seasonal patterns in returns Predicting returns from past returns Predicting returns from firm characteristics Predictability of market returns

TOPIC 3: Behavioural finance

Biases in Information Processing Biases in Framing Limits to arbitrage

TOPIC 4: Empirical Evidence on Security Returns

Testing the CAPM model Factors beyond the market factor The Fama French three factor model and the size and value factors The Carhart four factor model and the Momentum factor

TOPIC 5: The Theory of Active Portfolio Management: The Treynor-Black model

TOPIC 6: Portfolio Performance Evaluation I

Measuring returns o Time weighted returns o Money weighted returns

Adjusting returns for risk o Sharpe ratio o M-squared o Treynor ratio o Jensen's Alpha

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TOPIC 7: Portfolio Performance Evaluation II

Performance measurement with changing portfolio composition o Market timing measures o Market timing measures that condition on public information

Style Analysis Controlling for size and value in performance measurement Controlling for size, value and momentum in performance measurement

TOPIC 8: Mutual funds

What are mutual funds? Organisation of the fund management industry Fees charged by mutual funds How are funds sold to the public? How do mutual funds perform?

TOPIC 9: Hedge funds

What are hedge funds? o Where do they fit in? o How do they differ from mutual funds?

Industry Development Hedge funds strategies Why do hedge funds earn so much money? Fees and incentives Hedge fund indices and fund of funds

TOPIC 10: Exchange traded funds (ETFs)

ETFS vs mutual funds Advantages and disadvantages Types of ETFS

o Index-based ETFs o Sector based ETFs o Country ETFs o Commodity ETFs

READING LIST

Main textbook: There is no formal textbook.

Supplementary reading: Reading materials provided during lectures; case studies and academic journal articles.

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BUSINESS RESEARCH PROJECT SMM527

SESSIONS This is an individual project which students will develop in their own time with support from their project supervisor. Students are responsible for approaching a member of faculty whom they feel would be best able to supervise their work. MODULE ASSESSMENT Delivery of the final project, indicative length: 10,000 words EDUCATIONAL AIMS To train students to undertake individual research and provide them with an opportunity

to specialise in a contemporary business or finance topic related to their future career aspirations.

To integrate and apply concepts from different aspects of their MSc.

LEARNING OUTCOMES On completing the project students will be able to: identify specific business or finance related issues which would be useful to research

and shape an achievable research question around them; develop a research question and plan and carry out a research programme to address

the question; understand the theories and recent research relating the project topic; understand how to apply research methodologies to practical business and commercial

issues; show confidence in overcoming problems raised in the course of a practical research

project; and accept the challenge of carrying out a piece of research with elements of originality.

PROJECT REQUIREMENTS The choice of project is the student’s responsibility. It is most important that you choose an area you are happy to work in, and in which you are confident of your abilities.

Students are encouraged to start thinking about project ideas at the beginning of their studies. By the end of the first term you will have gained sufficient knowledge to start to develop ideas that can be discussed with faculty. We expect you to identify the basic idea or research question, though this is likely to be modified after discussion with academic staff.

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The types of project allowed are:

What you can do: What you can’t do:

Business report on a contemporary issue Business plan Statistical test of literature driven

hypothesis Empirical feasibility of a financial strategy Development of a new product/ service /

finance strategy Market survey Case study on a specific issue within a

particular company / organisation Numerical project that describes and

implements one or more numerical methods for pricing, hedging or reserving for derivatives or portfolios.

Pure literature surveys Some evidence that the writer has learnt

a new subject, a sort of extra elective A synthesis of other writing or a piece of

journalism A mere compendium of facts and

statistics Projects totally unrelated to relevant

academic discipline and literature.

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CORPORATE FINANCE & RESTRUCTURING SMM 464

MODULE LEADER Professor Gulnur Muradoglu

SESSIONS 30 hours – 10 x 3-hour sessions MODULE ASSESSMENT The module is assessed by group coursework and a final examination in April. The coursework counts for 25% and the exam for 75% of the overall module mark. For the group coursework, 20% of the coursework mark will be determined by Peer Assessment.

EDUCATIONAL AIMS The aim of this module is to develop an understanding of modern corporate finance so that the corporate manager, the investment banker and the financial analyst will have the conceptual foundations for making informed corporate assessments of key financial decisions. The module puts significant emphasis on the interactions between capital markets and the value of the underlying real assets. The module will make it possible for participants to: appreciate the implications of modern finance theory on practical corporate finance

issues; develop analytical skills to evaluate complex corporate finance decisions; understand the perspectives of corporate managers, shareholders, financiers and

financial intermediaries of key financial decisions; and become familiar with contemporary corporate finance practice and market trends

evolving in different countries. LEARNING OUTCOMES On completing the module the participants will:

know the key considerations affecting corporate finance decisions; understand the context and structure of corporate finance transactions; compete for management positions in corporate and financial institutions; and develop and execute complex corporate finance deals.

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TEACHING FORMAT The module will comprise ten sessions of three hours contact time each. Students are expected to devote at least an equivalent amount of learning time in private and group study of module material and the preparation of case studies. The preparation of the coursework assessment will involve additional time in private and group study. The module is designed to follow Corporate Finance & Valuation where a number of issues on valuation and theory of finance are developed. It also relates to the Financial Reporting and the Financial Statement Analysis modules. Research papers are used extensively throughout to illustrate theory and learn from empirical work. An important element of the module is the hands on approach and the focus on empirical issues. Each session will consist of: formal lecture; computer applications; participative discussion and debate; research paper presentations led by the assigned groups, although the whole class is expected to contribute to the discussion. SYLLABUS 1 Introduction 2 DCF, Estimating Discount Rates and MM theory of Capital Structure 3 DCF, Estimating Cash Flows and Theories of Capital Structure 4 DCF, Estimating Growth Rates and Empirical Regularities in Capital Structure 5 DCF, Equity Valuation and Market Efficiency Issues 6 DCF, Firm Valuation and Adjusted Present Value Approach 7 Option Valuation and Real Options 8 Cost of Distress and Restructuring Strategies 9 Relative Valuation and International Comparisons of Corporate Governance Systems 10 Revisions and Conclusions READING LIST Damodaran, A. 2006, Damodaran on Valuation, 2nd Edition, Wiley, NY. Damodaran, A, 2002, Investment Valuation, 2nd Edition, Wiley, NY. Copeland, Koller, Murrin, 2000, Valuation: Measuring and Managing the Value of Companies, 3rd Edition, Wiley. Brealey, R., Myers, S. and Allen, F. (2008) Corporate Finance, McGraw-Hill, 9th edition (ISBN 0-07-111551-X)

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Damodaran, A. (2011) Applied Corporate Finance: 3nd Edition, John Wiley and Sons (ISBN: 0-470-38464-0) Weston, J.F., Mitchell M.L., Mulherin, J.H.,(2004) Takeovers, Restructuring and Corporate Governance, 4th edition, Prentice Hall (ISBN: 0-13-122-553-7) Stern, J.M and Chew, D.H., (2007) Revolution in Corporate Finance, 4th edition, Blackwell (ISBN: 1-40510-781-5) Research papers and financial press: Financial Times, Wall Street Journal, The Economist Up-to-date articles and research papers as well as case studies from Harvard Publications and other sources will be used to illustrate theory in real world applications. Suggested Reading: Investment Valuation Damodaran on Valuation 1 Introduction 1 & 2 1 2 DCF, Estimating Discount Rates 7 & 8 2 And MM theory of Capital Structure 3 DCF, Estimating Cash Flows 9 & 10 3 And Theories of Capital Structure 4 DCF, Estimating Growth Rates 11 &12 4 And Empirical regularities in Capital Structure 5 DCF, Equity Valuation 14 & 16 5 And Market Efficiency Issues 6 DCF, Firm Valuation 15 6 And APT 7 Option Valuation 6 12 And Real Options 8 Cost of Distress 17 And Restructuring Strategies 9 Relative Valuation 17, 18, 19 7, 8, 9 And international comparisons of corporate governance systems 10 Revisions and Conclusions

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CORPORATE FINANCE & VALUATION SMM 467

MODULE LEADER Andrey Golubov SESSIONS 30 hours – 10 x 3-hour sessions MODULE ASSESSMENT The module is assessed by coursework and a final examination in April. The coursework counts for 25% and the exam for 75% of the overall module mark. Where assessment is by group coursework, 20% of the coursework mark will be determined by Peer Assessment. EDUCATIONAL AIMS The aim of this module is to introduce students to the field of corporate finance. This is achieved by familiarising students with the core theoretical principles, and equipping them with the basic and most commonly used practical finance tools. The material covered in this module is crucial for professional work in the area of corporate finance as well as for further study of more advanced or specialised corporate-finance-related modules. It is relevant for financial officers, economists, investment bankers, analysts, and other decision makers. The module is designed around several overarching principles such as the time value of money, market efficiency, and the goal of value maximisation. The teaching material puts significant emphasis on relevant theories and their practical applications, and is informed by the pertinent academic research and examples from the corporate world from around the globe. Specifically, the module will enable participants to: appreciate the scope of corporate finance and its role in achieving the corporate

objective; understand the perspectives of corporate managers, shareholders, and other

stakeholders, and realise potential conflicts of interest between them; master the concept of the time value of money for making informed and carefully

evaluated financial decisions; understand the risk-return trade-off and the key tools for assessing risk in capital

markets; develop analytical tools for estimating the cost of equity, debt and total capital for private

and listed companies; understand the role of capital structure, the process and the costs of raising capital and

its redistribution; appreciate the complexities of corporate investment decisions and their sensitivity to risk

and uncertainty; master tools used for assessment of investment projects and develop analytical skills to

assess the value of private and listed companies; and appreciate the role of takeovers and other restructuring activities in the corporate world. LEARNING OUTCOMES

Upon completion of the module the participants should be able to:

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know the key considerations affecting corporate finance decisions; understand the context and structure of corporate finance transactions; compete for management positions in corporate and financial institutions; and develop, evaluate and execute complex corporate finance deals.

TEACHING FORMAT The module consists of ten sessions of three hours contact time each. In addition to classroom learning, the students are expected to devote significant amount of time on private and group study of the module material, and on preparation for class. Preparation for the mid-term test and the final exam will require additional study time. Case studies are used throughout the module to illustrate theory and learn from real world situations. Additionally, the module introduces students to the pertinent academic research in the various areas of corporate finance. Each session consists of a formal lecture followed by a seminar-type discussion. The students are expected to fully participate in the discussions and debates around the issues raised in the lectures and described in the case studies. They are encouraged to bring in their own experience and practices in their countries and to ask relevant questions. SESSION PLAN Session 1 Corporate Finance and the Corporate Objective Function Session 2 Time Value of Money Session 3 Valuing Securities Session 4 Risk and Return in Capital Markets Session 5 Evaluating Investment Projects I Session 6 Evaluating Investment Projects II Session 7 Raising Capital Session 8 Capital Structure and Payout Policy Session 9 M&A Session 10 Revision READING LIST Recommended texts: The following two textbooks are perfectly interchangeable, and students can choose either one. The first has more of a US focus, the second a more international perspective:

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Megginson W., Smart S., Graham, J. (2010) Financial Management: Linking Theory to What Companies Do, 3rd edition, South-Western/Cengage Learning (ISBN: 978-0-538-74558-1) Hillier D., Ross S., Westerfield R., Jaffe J., Jordan B. (2010) Corporate Finance, European Edition, McGraw-Hill (ISBN: 978-0-077-12115-0)

Alternative texts: Brealey R., Myers S., Allen F. (2010) Principles of Corporate Finance, Global (10th) edition, McGraw-Hill (ISBN: 9780071314176)

The following two are more advanced texts:

Hillier D., Grinblatt M., Titman S. (2008) Financial Markets and Corporate Strategy, European Edition, McGraw-Hill (ISBN: 9780077119027) Vernimmen P., Quiry P., Dallocchio M., Le Fur Y., Salvi A. (2009) Corporate Finance: Theory and Practice, 2nd edition, Wiley (ISBN: 978-0-470-72192-6)

Students are also expected to read relevant research papers from the top academic finance, economics, and accounting journals such as:

The Journal of Finance (JF) Journal of Financial Economics (JFE) The Review of Financial Studies (RFS) Journal of Financial and Quantitative Analysis (JFQA) Review of Finance (RoF) Journal of Corporate Finance (JCF) Financial Management (FM) Journal of Banking and Finance (JBF) Journal of Banking Finance and Accounting (JBFA) European Financial Management (EFM)

American Economic Review (AER) Econometrica (ECMA) Journal of Political Economy (JPE) Quarterly Journal of Economics (QJE) Review of Economic Studies (ReStud)

Journal of Accounting Research (JAR) Journal of Accounting and Economics (JAE) The Accounting Review (TAR) Review of Accounting Studies (RAS)

In addition, students are also expected to read practitioner-oriented journals such as:

Financial Analyst Journal (FAJ) Harvard Business Review (HBR)

Finally, students are expected to follow recent developments in the corporate world by reading the financial press, e.g. Financial Times, The Wall Street Journal, The Economist, and by visiting web-based resources such as Bloomberg and Reuters.

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CORPORATE RISK MANAGEMENT SMM 250

MODULE LEADER Dr Richard Payne SESSIONS 30 hours – 10 x 3-hour sessions MODULE ASSESSMENT The module is assessed by group coursework and a final examination in April. The coursework counts for 25% and the exam for 75% of the overall module mark. Where assessment is by group coursework, 20% of the coursework mark will be determined by Peer Assessment.

EDUCATIONAL AIMS

The aim of this module is to provide both the theoretical justification for risk management within the firm and a solid practical understanding of the issues involved in implementing risk management programmes.

The module will make it possible for participants to:

acquire an understanding of the key concepts used in designing risk management functions within the firm;

acquire an understanding of the key instruments used to manage risk in corporations and how they are priced and traded;

acquire an understanding of practical approaches to risk management; and be able to apply for positions as risk managers within a corporate enterprise or as

corporate bankers providing risk management services in financial institutions, insurance companies or other organisations.

LEARNING OUTCOMES

On completing the module the participants will:

understand why corporations might choose to hedge the risks they face; have a clear understanding of the structure, pricing and use in risk management of

the most common classes of derivative assets; have a solid introduction to the practice of managing risks; know how and when to use risk management tools appropriately, and how to avoid

disaster; and understand the determinants and consequences of firms’ risk management decisions.

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SYLLABUS

Session 1 Introduction to corporate risk management: what are the risks

facing firms and why should we hedge them? Session 2 FX markets and FX risk Session 3 Hedging with forwards and futures

Session 4 Options contracts and hedging

Session 5 Comparing hedging alternatives

Session 6 Interest rate risk and swaps

Session 7 Hedging with swaps and forward rate agreements

Session 8 Credit risk

Session 9 Enterprise risk management

Session 10 Recap

READING LIST

Main textbook:

Chance and Brooks (2010), An introduction to derivatives and risk management, International Edition (8e), Cengage.

Supplementary reading:

Hull (2011), Options, futures and other derivatives, 8th edition, Prentice- Hall.

Other readings:

Module participants are requested to read The Financial Times regularly, and weekly magazines such as The Economist. Frequently during lectures there will be a chance to comment on important facts and news related to issues addressed in class. A number of other academic and professional articles will be referenced in lectures.

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DERIVATIVES AND RISK MANAGEMENT SMM 200

MODULE LEADER Dr Richard Payne

SESSIONS 30 hours – 10 x 3-hour sessions MODULE ASSESSMENT The module is assessed by a mid-term test and a final examination in April. The mid-term tests counts for 25% and the exam for 75% of the overall module mark.

EDUCATIONAL AIMS

The aim of this module is to provide both theoretical analysis of the pricing of financial derivatives and a practical introduction to the manner in which derivatives are traded and deployed for hedging and speculation. Derivative portfolio management will also be covered. The module will make it possible for participants to:

use and understand the key principles involved in pricing derivative assets and demonstrate an understanding of how they are traded;

acquire an understanding of how derivative portfolios may be used hedge and to speculate on specific risks;

appreciate the practical aspects of derivative portfolio management; and employ the mathematical and numerical techniques that underlie modern derivative

valuation.

LEARNING OUTCOMES


be able to use absence of arbitrage methods and basic continuous time mathematics to value derivative securities;

be able to detail the differences between the most common types of derivative security and to explain when and how they should be deployed for hedging purposes;

use the most common tools in derivative portfolio management; and understand the basic properties of more exotic equity derivatives, interest rate

derivatives and credit derivatives.

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SYLLABUS Session 1 Derivatives introduced and pricing basics Session 2 An introduction to continuous time finance Session 3 Forwards and futures: valuation and trading

Session 4 Interest rate futures and swaps

Session 5 Options and the Black-Scholes analysis

Session 6 Option portfolio management

Session 7 Exotic options and credit derivatives

Session 8 Risk measurement: volatility and correlation

Session 9 Other pricing approaches and some numerical methods

Session 10 Recap

READING LIST

Main textbook:

Hull (2011), Options, futures and other derivatives, 8th edition, Prentice- Hall.


Baxter and Rennie (1996), Financial Calculus: an introduction to derivative pricing, Cambridge University Press.

Other readings:


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FINANCIAL REPORTING SMM249

MODULE LEADER Dr Ivana Raonic SESSIONS 30 hours – 10 x 3 hourly sessions MODULE ASSESSMENT The module is assessed by a mid-term test and a final examination in January. The mid-term test counts for 25% and the exam for 75% of the overall module mark. EDUCATIONAL AIMS The aim of the module is to provide students with an understanding of the principles and practices of accounting, the characteristics, implications and limitations of accounting data.

The module will make it possible for participants:

to prepare and interpret financial statements; to comment on accounting policies and to discuss its implication for the financial

performance of the business; and to use accounting information to assess the financial situation of a company.

LEARNING OUTCOMES

On completion of the module, the participants will:

understand the accounting principles and methods underlying financial reporting; have the technical knowledge to read and understand financial information; and be able to prepare a set of financial statements.

SESSIONS

Session 1 Introduction to financial reporting, recording business transactions and preparing financial statements

Session 2 Accrual and cash accounting

Session 3 Inventory transactions

Session 4 Non-current assets

Session 5 Mid-term test

Session 6 Long-term liabilities

Session 7 Shareholders’ equity

Session 8 Cash flow statement

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Session 9 Inter-corporate investments, Group accounting and Foreign exchange translation

Session 10 Revision

READING LIST

Thomas, A. and Ward, A.M. Introduction to Financial Accounting. 6th Edition, 2009. McGraw-Hill (ISBN 978-0-07-712280-5)

Stolowy, H. and M.J. Lebas. Financial Accounting and Reporting. A Global Perspective. 2nd Edition, 2006, Thomson Learning (ISBN 978-1-84480-250-0)

Collins, B. and J. McKeith. Financial Accounting and Reporting. 2010 Edition. McGraw-Hill (ISBN 978-0-07-711452-7)

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FINANCIAL STATEMENT ANALYSIS SMM147

MODULE LEADER Dr Gilad Livne SESSIONS 30 hours – 10 x 3 hourly sessions MODULE ASSESSMENT The module is assessed by group coursework and a final examination in April. The coursework counts for 25% and the exam for 75% of the overall module mark. For group coursework, 20% of the coursework mark will be determined by Peer Assessment. The group assignment will ask you to select a company and analyse its performance using the framework presented in the module. Ideally, the company you choose to analyse will be compared to a competitor. The assignment should be printed and should not exceed 2,500 words (excluding charts, tables and graphs). The word count should be clearly stated. The names of the students should be clearly stated at the top of the document. More specific guidelines will be provided separately. EDUCATIONAL AIMS The aim of this part of the module is to equip you with the basic knowledge necessary for financial statement analysis and valuation. In addition, this part will build on the first part by discussing certain important current accounting issues. LEARNING OUTCOMES The module will enable you to:

carry out the four-step procedure for financial statements analysis and valuation; carry out ratio analysis and measure performance; conduct cash flow analysis; make forecasts of future financial statements and carry out valuation; and analyse accounting choice in a variety of circumstances.

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SESSIONS

Each of the ten sessions will be delivered in two parts with a fifteen-minute break. You are invited to ask questions and make comments to enhance the learning process.

Exercises and Problem Sets From time to time you will get exercises and problem sets to accompany taught materials. You will need to prepare the cases and solve questions given. I will hand out solutions in due course. You may do this in groups or individually. However, you do not need to submit this work, as it is not counted towards your module mark.

Group Presentations Certain sessions will start with a group presentation. The group presentation will be assigned to specific groups beforehand. The purpose of these presentations is twofold: To provide an opportunity for an independent analysis of cases that pertain to materials

discussed in class To enable you to practice presentation skills and improve your communication skills These presentations are not counted towards your module mark. Preparation You are expected to read the lecture notes, book chapters, cases and all other materials in advance before coming to class. Lack of preparedness could hinder class discussion and detract from the quality and depth of your learning. It is therefore imperative that you come prepared to all lectures. Please remember to bring with you to class all relevant materials, such as cases, and annual reports. Please also bring to each session a calculator.

Reading List

Palepu, K.G, P.M. Healy, V.L. Bernard, and E. Peek, Business Analysis and Valuation, IFRS Edition, 2007, Thomson Learning (ISBN 978-1-84480-492-4) [PHBP]

White, G. I., A. C. Sondhi and D. Fried The Analysis and Use of Financial Statements, 3rd Edition, 2003, Wiley (WSF)

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FIXED INCOME SMM516

MODULE LEADER Professor Alessandro Beber SESSIONS 30 hours – 10 x 3 hourly sessions MODULE ASSESSMENT The module is assessed by a mid-term test and a final examination in April. The mid-term tests counts for 25% and the exam for 75% of the overall module mark.

EDUCATIONAL AIMS The aim of this module is to introduce students to all the tools necessary to enable them to understand the problems involved in managing a fixed income portfolio. The focus will be on fixed income security markets, pricing and uses for portfolio management or for hedging interest rate risk. It will also cover term structure analysis and the use of derivative instruments in bond portfolio management (in particular futures, swaps, options and credit derivatives).

LEARNING OUTCOMES Students will be able to:

understand the fixed income investment process; understand how to construct and then risk manage a bond portfolio; recognise how management style might vary according to the fixed income asset

class that is being managed; and use interest rate-related derivatives to hedge and get exposure to market and credit

risk.

SYLLABUS

An introduction to fixed income securities Bond returns and bond price volatility Term structure of interest rates Where do bond yields come from? Interest rate derivatives & swaps Bonds with embedded options Credit derivatives Bond portfolio management

The sessions will comprise lectures, participative discussions and problem solving. Students are expected to undertake an equivalent amount of learning time in private and group study. The private study should involve reading the set texts and journal papers.

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READING LIST Module lecture notes. Bond markets, Analysis and Strategies (6th Edition), F.J. Fabozzi, Prentice Hall.

Further reading: to be advised.

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INTERNATIONAL FINANCE SMM113

MODULE LEADER Professor Ian W. Marsh SESSIONS 30 hours – 10 x 3-hour sessions

MODULE ASSESSMENT

The module is assessed by coursework and a final examination in April. The coursework counts for 25% and the exam for 75% of the overall module mark. Where assessment is by group coursework, 20% of the coursework mark will be determined by Peer Assessment.

EDUCATIONAL AIMS

The aim of the module is to provide the foundations of international financial management, exchange rate determination and an overview of recent issues and debates in the exchange rate and international finance literature.


describe the fundamental international parity relationships among exchange rates, interest rates and inflation rates and explain why deviations from this may occur;

gain in-depth knowledge of the spot and forward exchange market and its institutions and mechanisms;

outline the assumptions and implications of the basic models of exchange rate determination and explain the differences between them; and

discuss critically the various types of international monetary systems under which the world economy can operate and has operated at various points in time.

LEARNING OUTCOMES

On completing the module the participants will be able to:

explain why and how expectations affect exchange rates; evaluate critically the core empirical evidence related to fundamental debates on

issues such as the purchasing power parity puzzle and market efficiency; discuss recent issues in international finance such as target zones and currency

crises; and identify the basic factors affecting exchange rates under different international

monetary agreements such free floats, managed floats, and fixed-rate systems.

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SYLLABUS

FX Market: Determinants and Functions

Exchange rate definitions, exchange rate equilibrium, interaction of arbitrageurs, hedgers and speculators in FX markets, spot and forward rates, alternative exchange rate regimes.

International arbitrage relationships

Law of one price, purchasing power parity, uncovered and covered interest rate parity and the carry trade.

Macroeconomic models of exchange rate determination

The flexible-price Monetary model, Dornbusch overshooting model, asset approach to exchange rates, news and exchange rates

Microeconomic models of exchange rate determination

Foreign exchange order flow and exchange rate determination, exchange rate forecasting.

Developing countries and international finance

Exchange rate regime choice, target zones, models of currency crises, early warning crisis indicators.

READING LIST

Richard Levich International Financial Markets 2nd Edition (McGraw-Hill)

Paul Hallwood and Ronnie MacDonald International Money and Finance 3rd Edition (Blackwell)

Michael Rosenberg Exchange Rate Determination (McGraw-Hill)

Further readings are provided in the lecture notes for each topic.

Other readings:


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MERGERS & ACQUISITIONS AND PRIVATE EQUITY SMM236

MODULE LEADERS Scott Moeller and Edgar Miller SESSIONS 30 hours – 10 x 3-hour sessions

MODULE ASSESSMENT

The module is assessed by coursework and a final examination in April. The coursework counts for 50% and the exam for 50% of the overall module mark. EDUCATIONAL AIMS The principal learning outcomes of this module are twofold. The objective of the first half of the module is for students to become comfortable with, if not fluent in, the topic of Mergers & Acquisitions. Students should complete this section of the module with not only an understanding of the financial concepts applied to M&A but, more importantly, a full recognition of the impact on organisations and people of corporate restructurings. This first half of the module will focus on strategic deals between corporate acquirers. The objective of the second half of the module is to provide a broad appreciation of Private Equity as a special case in financial sponsor deals. Although it is not intended to prepare students for becoming private equity practitioners (just as the first half of the module is not intended to prepare students to be M&A advisors), it will provide a good introduction for those with future career interests in these sectors. LEARNING OUTCOMES On completing the module, students should:

know the key phases and disciplines of the M&A and private equity investment life-cycles, as well as the time-scale for post-merger integration in strategic deals and making and realising private equity investments;

have the ability to assess the appropriate valuation methodologies in potential M&A transactions of various types; this will necessarily include the distinctions between valuation and pricing, and will also cover the payment methods used;

develop an understanding of the full-costing of a deal; understand the importance of regulations and the roles of various external advisors in

the deal process; understand how private equity and M&A have evolved over time, their global

structure and importance; appreciate the distinctive characteristics of the two primary forms of private equity –

Venture Capital and Buyouts – and the role they play in investments, their economics, returns, risks, skill requirements and similarities/differences;

understand how prospective deals are sourced, evaluated, modelled, valued, structured and negotiated;

know how private equity fund managers do their job and interact with the entrepreneurs who manage their portfolio companies;

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appreciate how private equity funds work, their economics, investment returns and how returns are measured and benchmarked; and

appreciate the distinctive characteristics of private equity as an important asset class, the role private equity plays in diversified multiple-asset-class investing, and the key considerations for institutional investment in private equity funds.

SYLLABUS Mergers and Acquisitions Component

The five M&A sessions will cover the following topics and cases (note that the cases are subject to change). The structure of this part of the module will be discursive and the learning will come from the readings, cases and classroom discussion; note that no PowerPoint slides are used in these first five sessions:

Session 1: Introduction to the module, including overview of the M&A process and

the history of M&A (Case: Kraft / Cadbury) Session 2: Merger arbitrage / regulation (Case: Malcolm Glazer purchase of

Manchester United) Session 3: Defensive and offensive strategies (Case: Sir Philip Green / Marks &

Spencer) Session 4: Valuation, pricing and financing (Case: Deutsche Bank / Bankers Trust

plus an in-class case exercise, Pfalz, AG) Session 5: Integration planning and post-merger integration / Advisors (Case: Bank

of New York/Mellon Financial) Private Equity Component The five Private Equity sessions of the module are practically oriented and are aimed at providing a broad-gauged, real world understanding of the private equity investment process. Lectures are supplemented by analysis and class discussion of case studies, understanding deal valuation/structuring approaches through the solution and discussion of assigned problem sets, and interaction with guest lecturers from the private equity sector. Significant preparatory time will be required in advance of class for reviewing lecture notes, reading background material, solving assigned problem sets and analysing case studies.

Session 6: Overview of Private Equity Session 7: Doing venture capital deals. (Case: Centex Telemanagement) Session 8: Doing buyout deals (Case: Berkshire Partners: Bidding for Carters) Session 9: Structure, returns and characteristics of Private Equity funds Session 10: Investing in Private Equity funds – The LP’s perspective (Case: Yale

University Investments Office: August 2006) ASSESSMENT Mergers and Acquisitions Component There will be a quiz at the start of each of the M&A sessions (excepting the first session). These will combine some multiple choice questions with short answers. Combined, the quizzes will serve as the coursework component of the module and will count as 50% of the final mark. The quizzes will be handed out at the beginning of class and will be collected during the same class. The material covered in the quiz will also be used as learning during

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the class. In addition, bonus points for meaningful class discussion of cases will be awarded and points subtracted for failure to submit the assigned problem sets. There will be one and only one make-up quiz (to be scheduled for after the module) for anyone who has missed one of the earlier quizzes with a valid excuse authorised by the Course Office (which, except in the case of an emergency, needs to be notified to the Course Office prior to class). Private Equity Component There will be a two-hour invigilated exam in the April exam period. As with the M&A component of the module, bonus points for meaningful class discussion of cases will be awarded and points subtracted for failure to submit the assigned problem sets. These combined with the exam grade will count as 50% of the final mark. READING LIST Mergers and Acquisitions Component This is a case study-based module. Therefore, each session will focus on one case which will be provided by the Course Office. Students will prepare the initial analysis of the case for each class. Students are encouraged to swap ideas about the cases with other students and to begin to formulate individual and group ideas about the material prior to the class. Do note that ALL of the cases have been authored by students and faculty at Cass; many are the product of research conducted as part of student Business Research Projects (MBA or MSc students). There are also assigned readings from one textbook and from articles that are available on the Business School Library’s databases. Additional readings may be distributed or referenced during the module, especially contemporary articles from the financial press (usually the Financial Times). The following textbook is required for the module, although we will not refer to all of the material in the book as selected chapters only will be referenced:

Intelligent M&A: Navigating the Mergers an Acquisitions Minefield - Scott Moeller & Chris Brady (Wiley, 2007)

Private Equity Component There is no text book for this part of the module and all required reading will be provided. However, the following books are relevant and may be of interest to the serious student:

Inside Private Equity – James Kocis, James Bachman, Austin Long & Craig Nichols Valuation: Measuring and Managing The Value of Companies - Tim Koller, Marc

Goedhart & David Wessels Private Equity Exits – Stefan Povaly Private Equity as an Asset Class - Guy Fraser-Sampson Pioneering Portfolio Management: An Unconventional Approach to Institutional

Investment - David F Swensen

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RESEARCH PROJECT MANAGEMENT SKILLS SMM 522

MODULE LEADER Various SESSIONS 21 hours – 7 x 3-hour sessions MODULE ASSESSMENT

This module is assessed by two pieces of coursework. Early in Term 2, students will be asked to submit a literature review on a topic chosen from a set provided by the teaching staff. At the end of Term 2, students will take a test that examines their Excel modelling skills.

EDUCATIONAL AIMS

The aim of this module is to develop student skills in conducting financial research (whether in industry or academia). The module will start by discussing the formulation of research questions and move on to providing information on how to review literature related to a question. Extracting data from common financial databases will be discussed next and finally a set of sessions on modelling financial data in Excel will be provided.

LEARNING OUTCOMES


develop skills in researching and reviewing the existing literature related to a particular research question;

develop analytical skills to evaluate the impact of major institutional, market or organisational change;

develop an understanding of commonly used sources of financial data and develop skills in extracting and handling data; and

develop skills in organising and manipulating research data in Excel.

SYLLABUS This module will run over the course of Term 1 and Term 2, with sessions from Cass’s Database Manager, external consultants and academics. Sessions will include:

Literature review skills: the course director will give two sessions in autumn on how to search databases to find existing research related to a particular question and then how to structure a review of existing research.

Use of Databases: Empirical research involves collecting and analysing financial

data. Such data can be extracted from Financial Extel, DataStream, London Share Price Database (LSPD), Reuters etc. The session will review key databases available at Cass.

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Research Methodologies: These sessions will provide information on how to model and manipulate data extracted from financial databases in Excel. Students will be taken step by step through processes necessary to performing analysis and creating reports.

Application of Research: This session will develop the practical relevance and application of research methodologies within the MSc study routes, providing advice and guidance on the choice between the Business Research Project and elective route and developing the skills necessary to getting the most out of these options.

READING LIST Students will be provided with links to resources and practical material throughout the sessions.

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STATISTICS IN FINANCE SMM 248

MODULE LEADER Professor David Veredas SESSIONS 30 Hours – 10 x 3-hour sessions

MODULE ASSESSMENT The module is assessed by coursework and a final examination in January. The coursework counts for 25% and the exam for 75% of the overall module mark. Where assessment is by group coursework, 20% of the coursework mark will be determined by Peer Assessment. The coursework requires using the computer to carry out statistical analysis using real data sets. EDUCATIONAL AIMS

This module is designed to give students an understanding of the basic tools for the statistical and econometric analysis of financial data. Finance theory often makes convenient assumptions that facilitate the derivation of theoretical results but which may be questionable in practice. A good grounding in statistics will enable students to develop empirical tests for such assumptions and estimate econometric models that can be used, for instance, in asset pricing and forecasting. The development of empirical models that are coherent with observed financial data in turn indicates directions in which financial theory may be improved. The module has an applied or ‘hands-on’ emphasis and students will therefore be given a good grounding on how to use a software package (EViews) to conduct formal statistical analysis of real world problems. The module will make it possible for participants to:

acquire an in-depth and practical understanding of the basic tools for empirical modelling and statistical inference in financial markets;

assess critically the current state-of-the-art of empirical research in a range of topics in finance;

develop the practical skills required to carry out research in financial markets using standard econometric software; and

be able to apply for positions, for instance, in the research, portfolio management and foreign exchange units of companies, financial institutions and organisations.

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LEARNING OUTCOMES

On completing the module the participants will be able to:

understand the basic principles for the statistical analysis of financial data; understand the mechanics of hypothesis testing in the context of financial markets; develop empirical models that capture the stylised behaviour of financial data use standard econometric software such as EViews to undertake empirical research;

and assess critically other empirical work given the framework developed in the module.

SYLLABUS

The Principles of Statistical Analysis of Financial Data and Regression Analysis Hypothesis Testing, Specification Testing, Dummy Variables Estimation Methods and Inference Ordinary Least Squares, Maximum Likelihood, t statistic, F statistic, LR statistic, measures of model adequacy Autocorrelation Causes and remedies Heteroskedasticity Causes and remedies Multicollinearity, Nonnormality Causes and remedies An Introduction to Panel Data Models Pooled estimators, fixed effects and random effects estimators, SURE approach Volatility clustering and ARCH models Tests for the asymmetric effect of positive and negative shocks using ARCH models Time Series Modelling Issues Univariate ARMA models, Autocorrelation and partial autocorrelation function, Granger causalilty tests, unit root tests, univariate cointegration tests, multivariate Johansen cointegration tests, VAR and VECM models

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READING LIST

[1] Wooldridge, J. M. (2009) Introductory Econometrics, International Student Edition, 4rd edition, South-Western

[2]] Gujarati, D. (2008) Basic Econometrics, 5th edition, McGraw Hill (includes student version of EViews software package)

[3] Brooks, C. (2008) Introductory Econometrics for Finance, 2nd edition, Cambridge

[4] Enders, T. (2004) Applied Econometric Time Series, 2nd edition, John Wiley

[5] Hill, R., Griffiths, W. and Judge, G. (2001) Undergraduate Econometrics, John Wiley & Sons

[6] Franses, P.H., (2002) A Concise Introduction to Econometrics: An Intuitive Guide, Cambridge University Press

Note: [5] or [6] are recommended as preliminary reading for students with very limited quantitative background

Other readings:

Further reading is provided through detailed lecturer’s notes for each topic which will be made available at the start of the module.

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THEORY OF FINANCE SMM 148

MODULE LEADER Dr Dirk Nitzsche SESSIONS 30 hours – 10 x 3-hour sessions MODULE ASSESSMENT The module is assessed by coursework and a final examination in January. The coursework counts for 25% and the exam for 75% of the overall module mark. Where assessment is by group coursework, 20% of the coursework mark will be determined by Peer Assessment. EDUCATIONAL AIMS The aim of this module is to provide a fundamental understanding of the structure and functioning of capital markets. This includes an introduction of different financial instruments traded on those markets as well as an introduction of the key theories which connect risk and return, the two concepts driving financial markets. Valuation and use of those instruments will be at the centre of this important core module. The module will make it possible for participants to:

understand the importance of risk and return in the decision-making process; acquire an understanding of the key concepts used in the financial markets and

functioning of the key financial instruments available in those markets; and be able to apply for junior positions as analysts or traders in financial institutions,

asset management companies or other organisations.

LEARNING OUTCOMES


understand the big issues of financial markets: the asset allocation decision, the link between risk and expected return, measuring portfolio performance and risk;

understand the characteristics of different financial assets and how they can be priced;

know and apply important concepts and theories used in financial markets: capital allocation, capital asset pricing model, market efficiency, active and passive portfolio management; and

know how to enhance traditional asset allocations with derivatives.

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SYLLABUS

Session 1 Introduction to Financial Markets Session 2 Security Valuation Techniques Session 3 Risk and Return Session 4 Equity Valuation Session 5 Portfolio Theory Session 6 The Capital Asset Pricing Model Session 7 Fixed Income Securities 1 Session 8 Fixed Income Securities 2 Session 9 Derivatives: Options and Futures 1 Session 10 Derivatives: Options and Futures 2

READING LIST

Main textbook:

Cuthbertson, K. and Nitzsche, D. (2008) Investments, John Wiley


Bodie, Z., Kane, A. and Markus, A. (2008) Investments, 7th edition, Irwin-McGraw Hill

Elton, E., Gruber, M., Brown, S. and Goetzmann, W. (2003) Modern portfolio theory and investment analysis, 6th edition, John Wiley (EGBG)

Elton, E. and Gruber, M. Modern portfolio theory and investment analysis, latest edition, John Wiley (EG)

Other readings:


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Elective Information Cass Business School provides an extensive range of elective modules for the various MSc programmes. An elective handbook, giving the selection of Term 3 modules available in your academic year, will be distributed in Term 2 and will provide full up-to-date information. Electives previously been provided by MSc Finance include:

Corporate Restructuring Credit Risk Management Fixed Income Securities & Derivatives Global Macro Strategy Islamic Finance Mergers & Acquisitions Project Finance Raising Equity Capital

Students will also be able to choose from pre-selected modules offered by other MSc programmes. In the past these have included:

Advanced Company Valuation Behavioural Finance Consulting Skills Corporate Governance Financial Statement Analysis & Valuation in Banks Hedge Funds Pension Finance Private Equity Investment Real Estate Portfolio & Fund Management Real Estate Securitisation Technical Analysis & Trading Systems Trading & Hedging in the Forex Market

Please note that the School reserves the right to withdraw an elective if demand is insufficient, and to add new electives which become available. Space restrictions and timetable availability also applies.

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Section 4: Assessment Regulations and Regulations for the Award of the Degree Described below are the rules governing the award of a master degree in Finance. For further information, the City University’s complete set of “Ordinances and Regulations” are published on the University’s website. Assessment Regulations

Assessment Calculations The rules governing calculation of module and overall degree marks are as follows;

All modules must be passed individually. There are no minimum mark requirements for separate assessment components

(unless specifically stated). However, it is compulsory to complete all coursework and exam components and no module mark can be awarded until these are completed.

A module mark is calculated by aggregating marks for all assessment components, unless otherwise stated in the module outline (section three).

Where modules are assessed by both exam and coursework, these are weighted to calculate the module mark – please see the assessment matrix in section two for the relative weightings.

Where there are several pieces of coursework, the coursework results are averaged according to weightings.

To calculate the overall degree mark, module marks are combined using weightings in line with the relative credit values of modules.

Failure and Re-sitting of Modules

Any module with an aggregate mark of less than 50% is deemed to have been failed and must be resat.

To resit a failed module, a candidate must re-do all assessment components which gained marks of less than 50%.

Modules may be resat only once.

A candidate who successfully completes a resit shall be awarded the credits for the

module. The mark awarded for the resat components will be capped at 50%. The mark awarded for other components will be the original mark. This mark will also be used in calculating the overall degree mark.

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A candidate who does not pass his or her resit by the date specified by the Assessment Board will not progress on the programme and the Assessment Board will normally make a recommendation that they withdraw.

Coursework All coursework and invigilated tests are compulsory and count towards the final degree. In some modules presentations or invigilated tests may replace written coursework assignments. Some subjects may be assessed by coursework only. Precise details concerning examined and non examined modules are provided in the module outlines. Please note coursework is required to be submitted for assessment by the specified deadline date. Late coursework will receive imposed penalties. Late coursework will immediately receive a deduction of five marks on the first day of lateness, with one further mark deducted for each day of lateness, for a maximum of five days. After this point coursework will not be accepted and a mark of zero will be awarded. All coursework should be submitted electronically via the virtual learning environment, Moodle. It is essential that you keep a copy of all coursework submitted. All sources used should be cited using the Harvard referencing system. Further information about this can be found on the Cass website: http://www.cass.city.ac.uk/intranet/student/learning-resource-centre/citing-references. Coursework will be returned to students as quickly as possible with the aim of students receiving feedback within three to four weeks of their submission

Peer Assessment

In many careers in Banking and International Finance working as part of a team is an integral part of the role. Learning the skills to support successful team working and build successful interpersonal relationships is an important element of your MSc course. To help you do this Cass has developed a peer review strategy which is part of the assessment for this module. The process works as follows: At the end of each of the applicable modules you will receive a link to the peer review

database, which will allow you to complete the assessment for each member of your module group.

You will only be able to access the peer review database for a defined period of time (usually around one - two weeks) following submission of your coursework, after which the database will be closed and you will not be able to access it.

You will be asked to review the performance of each member of your group by grading

them on a number of criteria and providing constructive commentary, they will be doing the same for you. The criteria will be available through the link you receive.

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You should think carefully about the grades you give and the comments you make –

ensure they are truthful and constructive as they will be reviewed by lecturers. Do not be tempted to award artificially low or high grades in your peer review, this will be

noticed and moderated by the module leader.

Please note: Where peer assessment is used you must complete it in order to access the full range of marks for the module. If you do not complete the peer review element of your assessment by the given deadline you will receive a zero grade for it which will impact on the final result you receive for the module. Please refer to the individual module outlines for clarification of which modules this applies to.

Degree Requirements To qualify for a Masters degree, a candidate must achieve at least 50% as an aggregate mark for each module and an overall degree average mark of 50%. This will result in the acquisition of 180 credits, which is the number required to achieve a masters degree in Finance.

Award of Distinction To calculate the overall degree mark, all module marks are combined using the weightings in the Assessment matrix table. The award of distinction for the masters is based on:

An overall degree mark of at least 70%, with no modules failed at first attempt. However, where a student has one resit and passes, achieves an overall degree

average mark of 70% or above, should be awarded a merit and not a pass.

Award of Merit To calculate the overall degree mark all module marks are combined using the weighting in the table. The award of merit for the Masters is based on:

An overall degree mark between 65% - 69.9% inclusive. No modules failed at first attempt.

Postgraduate Diploma A student who has not accumulated enough credits to be awarded a masters degree may be awarded a postgraduate diploma provided they have satisfied the following conditions:

1. The total number of credits gained is equal to or greater than the minimum credits stipulated in the programme specification for the award of a diploma.

For the award of a diploma, a student may compensate a maximum of 20 core or core elective credits provided the following conditions are met:

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1. The mark achieved for the module(s) to be compensated is at least 40%. 2. The average mark of all modules to be counted towards the diploma, including those

modules to be compensated, is at least 50%. Note that:

The diploma average will be calculated in the same way as the masters average as specified in the programme specification;

The award of distinction and merit will also be calculated in the same way as for the masters degree, as specified in the programme specification.

Periods of Registration The periods allowed for completion of the qualifications are:

Four years for a masters degree: full or part-time Two years for a postgraduate diploma: full or part-time

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Grade Related Criteria

Cla

ss % Literary Knowledge

Independent thought, uses of sources & research materials

Presentation Professional

Dis

tin

ctio

n

85-100 A Outstanding Comprehensive and informative knowledge of subject area, may include - new knowledge derived from which the marker and wider community may learn; addresses the learning outcomes/ assessment criteria in full.

Where relevant, evidence of independent reading, thinking and analysis and strong critical ability

Well-constructed Professional approach to academic practice; professional standard generally

80-84 Excellent

75-79 Very good Sophisticated or strong - shows knowledge of complex issues or a broad range of issues and addresses the learning outcomes/assessment criteria well.

Where relevant, show evidence of wide and comprehensive reading and critical ability

Clearly written Adhere to the principles of good academic practice 70-74

Me

rit

65-69 B Good Sound knowledge of a broad range of issues or detailed knowledge of a smaller number of issues; makes a good attempt to address the learning outcomes/assessment criteria, realising all to some extent and some well

Evidence of thorough research of the topic(s) but some answers may not be complete or arguments sufficiently explored. Some critical ability will be evident.

Well-structured and logically written

Demonstrate good academic practice

Pas

s

50-64 C Satisfactory Adequate knowledge of important issues – some level of response to all learning outcomes/assessment criteria but may not include important elements or information that is fully accurate.

Where relevant, development of ideas is limited but attempts will be made to analyse materials critically

Expression and structure may lack clarity

Evidence of good academic practice will be limited

Fai

l

41-49 D Poor Unsatisfactory work - inadequate knowledge of the important issues and doesn’t succeed in grasping key issues, therefore learning outcomes/ assessment criteria will not be realised

No real development of ideas and critical analysis will be very limited.

Presentation is confused or incoherent

General ignorance of good academic practice may be evident

20-40 E Very poor Knowledge is lacking either through omission, the inclusion of large amounts of irrelevant information or evidence of significant misunderstanding - totally inadequate attempt to address the learning outcomes/ assessment criteria

No critical ability will be displayed

Confused, incoherent or unstructured presentation

Ignorance of good academic practice will be evident

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Section 5 Additional Information The Course Office The MSc Course Office Administration is located on the 3rd Floor of Cass Business School. The Course Office is open to students at the following times: Term Time: Monday: 1pm – 6.30pm Out of Term: Monday to Thursday: 1pm – 5pm

Tuesday: 1pm – 8pm Friday: 10.30am – 3.30pm Wednesday: 1pm – 6:30pm Thursday: 1pm – 8pm Friday: 10.30am – 3.30pm

Virtual Learning Environment The Virtual Learning Environment for City University, Moodle, provides a variety of information to students including the following:

Lecturer contact details Course Officer contact details Copies of course and module materials Coursework grades Test and examination timetables Extenuating Circumstances procedure Fact Sheets relating to Visa, Appeals and other general information Links to Library, Careers, Student Advice and Clubs web pages

Students are responsible for regularly checking both their City email and Moodle accounts, as this is how up-to-date information and detail changes are communicated. Weekly email updates are sent to students by the Course Officer for their MSc Course, to whom all administrative enquiries should be directed. Personal Tutors Postgraduate taught students are assigned a personal tutor at the beginning of the year. This personal tutor will be available to provide general academic, professional and pastoral support and will also ensure that a student is aware of the additional and more specialised support mechanisms available within the University. Students should have the opportunity to see their personal tutor on an individual basis at least once a term. The Course Office team is also available to assist should you need help during the course of your studies. Staff Contact Details In addition to their main teaching responsibilities, academic staff engage in research, university administration and external work. As a result of their varying duties, staff members may not be able to see you without an appointment. If the matter you wish to raise is urgent, please make this clear when making the appointment. For lecturers’ contact details and office hours, please refer to Moodle.

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Programme Disclaimer

The information in this Specialist Masters Programme Handbook is correct at the time of going to press in August 2011. The University reserves the right to make amendments to:

a) the contents of the Programme Handbook and in particular to the timetable, location and methods of delivery or the content, syllabus and assessment of any of its programmes as set out in the programme and module specifications in this Handbook and/or on the University's website; and

b) its statutes, ordinances, regulations, policies, procedures and fee structures,

provided that such amendments are (i) as a result of student demand (or lack thereof), (ii) as a result of unforeseen events or circumstances beyond the University's control or (iii) are deemed reasonably necessary by the University. In the event that amendments are made, the University shall take reasonable steps to notify you as soon as is reasonably possible.

Documents

Course handbook MSc in Finance - Cass Business School · MSc in Finance has been developed. The course fully integrates theory and practice and enables students to specialise in either