Assignment Remit
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Programme Title |
Economics suite of programmes |
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Module Title |
Advanced Financial Markets and Institutions |
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Module Code |
33106 |
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Assignment Title |
Advanced Financial Markets and Institutions – Assignment 1 |
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Level |
LH |
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Weighting |
25% |
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Hand Out Date |
Click here to enter a date. |
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Due Date & Time |
28/02/2024 |
12:00 noon (UK time) |
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Feedback Post Date |
21/03/2024 |
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Assignment Format |
Essay |
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Assignment Length |
1200 words absolute maximum |
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Submission Format |
Online |
Individual |
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Assignment:
Assignment Title:
"Critical Evaluation of the Capital Asset Pricing Model: From Theory to Practice"
Assignment Brief:
Drawing from the materials covered in lectures and supplemented by your own research, this assignment requires a comprehensive analysis of the Capital Asset Pricing Model (CAPM). Your evaluation should address the following four key areas, each forming a distinct section of your essay:
1. Theoretical Foundations of CAPM:
• Examine the core theoretical assumptions behind the CAPM.
• Critically assess the relevance and realism of these assumptions in the context of modern financial theory.
2. Empirical Testing of CAPM:
• Analize various empirical studies that have tested the CAPM's implications.
• Discuss the methodologies used in these studies and their findings.
3. Limitations and Solutions of CAPM:
• Identify the primary limitations of the CAPM as revealed by both theoretical critiques and empirical evidence.
• Propose potential solutions or modifications that could address these limitations.
4. CAPM in Financial Strategy:
• Explore how CAPM is integrated into actual financial strategies and decision-making processes.
• Contrast the theoretical concepts of CAPM with their practical application in financial managemen
Word Limit:
• The essay should have a strict maximum of 1200 words, excluding the reference list.
Referencing:
• Comprehensive Harvard referencing is expected.
• A full reference list must be provided at the end of the essay.
Research and Integration of Module Material:
• Conducting further research on the topic is essential for a comprehensive response.
• Your essay should integrate concepts covered during the module, demonstrating a thorough understanding of the material presented in lectures, seminars, and assigned readings.
Assignment Objective:
Your essay should provide a balanced and critical evaluation of the CAPM, highlighting its strengths and weaknesses, and offer insights into how the model is utilized in real-world financial scenarios versus its theoretical structure.
Expected Outcomes:
Through this assignment, students are expected to develop a deeper understanding of the CAPM, enhance their critical thinking skills in financial theory analysis, and appreciate the complexities involved in applying theoretical models to practical financial strategies.
Module Learning Outcomes:
1. Systematic Understanding of Microeconomic Foundations in Financial Economics:
a. Students will demonstrate a systematic knowledge and deep understanding of the microeconomic foundations underlying financial economics.
b. They will be able to explain how microeconomic principles impact financial markets, investment decisions, and the valuation of assets, integrating this understanding into their analysis of financial theories such as the Capital Asset Pricing Model (CAPM).
2. Analysis of Asset Markets and Theoretical Model Application:
a. Students will develop the ability to analyze the behavior of asset markets and asset prices, employing various theoretical models including CAPM.
b. They will critically evaluate the empirical implementation of these models, assessing their effectiveness in predicting and explaining market behaviors.
3. Critical Evaluation and Empirical Research Skills:
a. Students will enhance their research skills by conducting empirical analyses of asset markets, utilizing a range of economic and financial data.
b. They will learn to critically evaluate the outcomes of these analyses, contrasting theoretical predictions with real-world market trends, and synthesizing their findings to draw informed conclusions.
Grading Criteria for this assignment:
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Mark awarded |
The higher mark (100, 88, 78, etc.) should be awarded if criteria in any mark band are fully or nearly fully met. The lower marks (62, 33, etc.) should be awarded to scripts that are above the highest standard for the category below but fail to meet all the criteria for the selected mark band. The middle marks (45, 55, 65, 75) can also be used when marking between 40 and 80%. |
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100 (93) |
An outstanding essay, as good as can be reasonably expected. Must show excellent understanding of the topic and synthesis of material from a range of relevant sources. Presentation and structure excellent with effective use of diagrams and images (where appropriate). Reference material cited and listed appropriately. Clear evidence of engagement with the module’s lectures, seminars and reading.
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88 (83) |
An excellent answer, demonstrates full understanding of the topic. Good use of material from a wide range of relevant sources. Extremely well written and structured with effective use of diagrams and images (where appropriate). Reference material cited and listed appropriately. Clear evidence of engagement with the module’s lectures, seminars and reading. |
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78 (75) (72) |
A very good essay that includes all the major points required to address the topic, demonstrates a thorough understanding of the topic. Good use of material from several sources. Presentation and structure good with good use of diagrams and images (where appropriate). Reference material cited and listed appropriately. Clear evidence of engagement with the module’s lectures, seminars and reading. |
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68 (65) (62) |
A good essay that includes most of the major points required to address the topic, shows a good understanding of the subject area. Good use of material from several sources. Presentation and structure generally good with good use of diagrams and images (where appropriate). Reference material cited and listed appropriately. |
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58 (55) (52) |
A satisfactory essay that includes the basic information required to address the topic, shows understanding of the topic. Material may be from a limited range of sources or too reliant on internet sources. Insufficient thought given to structure, some use of diagrams and images (where appropriate). Some errors in citing and listing reference material. |
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48 (45) (42) |
Essay incomplete with serious omissions, some sound knowledge and evidence that the topic has, at least partly, been understood. Material may be from a limited range of sources or too reliant on internet sources. Poorly structured with poor use of diagrams and images. Errors in citing and listing reference material. |
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38 (33) |
Unsatisfactory essay with major omissions and errors; lacks evidence of understanding. Material from a limited range of sources or too reliant on internet sources but some material relevant to the topic. Poorly structured with poor use of diagrams and images. Errors in citing and listing reference material. |
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28 (23) |
Poor essay but contains some relevant points. Material from a limited range of sources or too reliant on internet sources. Poorly structured, little use of appropriate images or diagrams. Errors in citing and listing reference material. |
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18 (13) |
Little of value, one major or a small number of minor points which may be just relevant. Fails to address the question. |
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8 (3) |
Virtually nothing of value, maybe one or two very minor points, phrases or words that are barely relevant. No evidence of understanding the question. |
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0 |
Answer contains nothing relevant to the question. |