THEORY AND APPLICATIONS IN FINANCE - 2026/7

Module Overview

This module introduces the core building blocks of modern finance theory and examines how financial markets operate in practice. It explores the functioning of capital markets, options markets, and foreign exchange markets, and covers key topics including investor behaviour, asset pricing, and financial trading. The module emphasises the application of financial models to interpret market outcomes and understand the mechanisms that drive prices and trading in global financial markets.

Module provider

Economics

Module Leader

MANDILARAS Alexandros (Economics)

Number of Credits: 15

ECTS Credits: 7.5

Framework: FHEQ Level 7

Module cap (Maximum number of students): N/A

Module Availability

Semester 2

Prerequisites / Co-requisites

None.

Module content

The module examines the theoretical foundations and practical functioning of capital markets, options markets, and foreign exchange markets, with emphasis on investor behaviour, asset pricing, derivatives, and financial trading strategies.

Assessment pattern

Alternative Assessment

The alternative assessment for the group project is an individual assignment.

Assessment Strategy

The assessment strategy is designed to enable students to demonstrate achievement of the module¿s learning outcomes while developing analytical reasoning, problem-solving skills, digital capabilities, and employability-related competencies relevant to financial analysis and decision-making.

The summative assessment for this module consists of three components. 

1. The Portfolio Management Report assesses students¿ ability to analyse financial assets and apply asset valuation techniques in a structured written report. In completing this task, students engage with financial data and apply appropriate analytical tools, including programming software, to produce work of a professional standard.
2. The Financial Trading Project is a group-based assessment that requires students to apply financial theory to trading decisions using a trading platform. Through this activity, students develop practical understanding of market behaviour while strengthening teamwork, communication, and decision-making skills in a collaborative environment.
3. The Final Examination assesses students¿ conceptual understanding of finance theory and their ability to explain and apply key models and mechanisms covered in the module, including those relating to capital markets, derivatives, and foreign exchange markets.

Formative Assessment

Weekly self-tests with built-in feedback are provided throughout the module to support student learning and allow students to check their understanding of key concepts and analytical techniques.

Feedback

Students receive ongoing feedback during lectures through interactive discussions and polling activities that help identify areas of misunderstanding. Following the final examination, guidance on expected answers is provided. Feedback on the Portfolio Management Report and the Financial Trading Project is delivered through structured feedback forms on SurreyLearn within the University¿s designated timelines, including comments on performance and suggestions for improvement where appropriate.

Module aims

• The aim of the module is to facilitate a thorough understanding of certain financial markets, train students in the use of advanced asset-pricing techniques and equip them with professional skills that are relevant to careers in the finance industry.

Learning outcomes

Methods of Teaching / Learning

Teaching on this module combines structured lectures with interactive learning activities designed to support active engagement and deepen students' understanding of financial economics. Lectures introduce the main theoretical frameworks and analytical tools used in the study of financial markets, including asset pricing, derivatives, and portfolio analysis, and provide guided explanations of the key concepts and techniques used in the module.

To support preparation and structured learning, students are provided with short summaries of the relevant topics in advance of each lecture, highlighting the main concepts, models, and learning objectives. These materials help students focus on the key ideas that will be developed further during the lecture and support consolidation of knowledge after class.

During lectures, online polling tools are used to pose conceptual and analytical questions that allow students to test their understanding in real time and receive immediate feedback. These activities encourage participation, help identify common misunderstandings, and create opportunities for discussion and clarification of financial concepts during the class.

Lectures also include guided problem-solving exercises that allow students to apply theoretical frameworks to practical examples drawn from financial markets. This approach helps students develop analytical reasoning, interpret financial data, and connect theoretical models to real-world financial decision-making.

Together, these teaching and learning methods combine clear conceptual instruction, active participation, and regular opportunities for feedback, supporting students in developing both a solid understanding of finance theory and the ability to apply it in practical contexts.

Indicated Lecture Hours (which may also include seminars, tutorials, workshops and other contact time) are approximate and may include in-class tests where one or more of these are an assessment on the module. In-class tests are scheduled/organised separately to taught content and will be published on to student personal timetables, where they apply to taken modules, as soon as they are finalised by central administration. This will usually be after the initial publication of the teaching timetable for the relevant semester.

Reading list

https://readinglists.surrey.ac.uk
Upon accessing the reading list, please search for the module using the module code: ECOM071

Other information

In line with the University's curriculum framework, the School of Economics is committed to developing graduates with strengths in Employability, Digital Capabilities, Global and Cultural Capabilities, Sustainability, and Resourcefulness and Resilience. This module contributes to these capabilities as follows:

Employability
The individual report and group project develop independent judgement, teamwork, and the ability to analyse and synthesise financial concepts and methods, while encouraging students to reflect critically on their work.

Digital Capabilities
Students gain introductory experience with digital tools used in the financial industry by working with programming software in the individual report and engaging with a trading platform in the group project.

Global and Cultural Capabilities
Through the study of international financial markets and global asset pricing, students develop an understanding of financial systems operating across different countries and institutional contexts.

Resourcefulness and Resilience
Collaborative work on the group project strengthens communication and teamwork skills, while multiple feedback opportunities encourage students to respond constructively to feedback and reflect on their learning.

Programmes this module appears in

Please note that the information detailed within this record is accurate at the time of publishing and may be subject to change. This record contains information for the most up to date version of the programme / module for the 2026/7 academic year.