University of St Andrews

Key information

SCOTCAT credits : 20

ECTS credits : 10

Level : SCQF level 11

Semester: 1

Planned timetable: To be arranged.

This module introduces the basic concepts of investment value analysis. Investments cover real economic projects such as those undertaken by corporations and governments, as well as financial investments, which are regularly priced and traded in financial markets. The ultimate aim is to provide the student with a standard approach to define, measure and predict value of investments in a world of uncertainty and asymmetric information. The tradeoff between risk and return is defined, and economic models of how risks and returns are determined and traded in financial markets are applied to solve any investment analysis problem. The valuation problems covered in this module involve corporate investments, a wide range of corporate liabilities such as shares and bonds, and associated financial contracts such as options. The module presents a standard framework to analyse agency problems that prevail in corporate financial decisions such as CEO compensation and performance assessment.

Learning and teaching methods and delivery

Weekly contact: 1 lecture or 1 seminar.

Assessment pattern

As used by St Andrews: 2-hour Written Examination = 50%, Coursework = 50%


Re-assessment: 2-hour Written Examination = 100%

Personnel