On Campus Assignment- Financial Markets (APC 313)
2015-16 Academic year.
LEARNING OUTCOMES
Upon successful completion of this module, students will be able to:
Knowledge-based outcomes
1. explain the operation of financial markets and understand their
importance.
2. explain key theories and models of financial markets including the
efficient market hypothesis, and understand key implications.
3. analyse the operations and the efficiency of financial markets
Skill-based outcomes
4. To identify and collect appropriate financial data and indices
including share prices to carry out analysis of operations and efficiency
of financial markets.
Assessment Criteria
[Link] of background reading and relevance of the material to the
question posed.
[Link] use of up-date Harvard referencing system .
[Link] of analysis based on relevant academic literature , empirical
evidence , and financial data analysis.
4. Appropriate conclusion based on relevant analysis of data ,
academic literature and empirical evidence.
Guidance and Preparation Note:
1. Overall word limit ,excluding tables, charts, and graphs, is between
3000-4000 words.
[Link] question should be answered with close reference to key
published academic literature and relevant financial data and evidence.
[Link] Q.3(b) you need to review carefully key academic literature and
published supporting empirical evidence on EMH , as well as , to
carry out your own financial data analysis based on a relevant
graphical analysis of movements in daily FTSE All share price
index ,over say a 90- days period, to arrive at a conclusion.
THE UNIVERSITYS REGULATIONS
CONCERNING CHEATING, COLLUSION AND
PLAGIARISM APPLY TO THIS Assessment.
Answer all questions and all parts.
Q1.
(a) Explain what you understand by each of the following terms .In
each case give an example relating to the financial markets to illustrate
your answer.
asymmetric information
moral hazard
(10 marks)
(b) With close reference to your answer in part (a) above, discuss
why
there
is
a
need
to
regulate
financial
markets.
(10 marks)
Q.2
Compare and contrast key activities of the capital markets
with those of the money markets .Why is there a need for
both types of markets in advanced economies?
(20 marks)
Q.3
(a) Distinguish between different levels of market efficiency. Give
examples to illustrate your answer.
(10 marks)
(b) With close reference to relevant theoretical and
empirical literature , carry out your own graphical analysis of
movements in daily FTSE All share price index ,over a specific
period of time , to critically assess the efficiency of the London
Stock Exchange (LSE) market.
(30
marks)
Q.4
Distinguish between the spot and the forward foreign exchange
rates and explain how these are determined in the foreign exchange
markets . Examine the nature of relationship between these two
rates.
(20 marks)