Assessment Brief

Module Title: Asset valuation Module Code: 7BSP1121

Assignment Format & INDIVIDUAL Report, maximum Assignment
50%
Maximum Word count 2,400 words Weighting:
Time:23:59 Coursework return Before 15/5/19
Coursework Submission: Date:17/4/19 Date returned to
Method: Canvas students:
Georgios
Module leader Georgios Katechos First marker
Katechos
Approved ☐
Internal Moderator Module Board name PG AFE
Date:
Approved ☐
External Examiner Module Board date
Date:

Assessment Criteria
Learning Outcomes: Knowledge and Understanding tested in this assignment:
● 2. Examine the use of debt and derivative securities in formulating practical investment strategies;
● 3. Analyse, evaluate and critique the theoretical models when applied to debt instruments,

Learning Outcomes: Skills and Attributes tested in this assignment:

● 5. evaluate and critique how derivative instruments may be used in investment strategies;

Feedback /Marking criteria for this Assignment

Performance will be assessed using HBS Grading Criteria and Mark scheme.
Guidance for improvement will be given in writing on the Assessment Feedback Form or on the StudyNet
Feedback Form within 4 weeks of submission.
Assignments submitted up to one week late will receive a maximum numeric grade of:
Levels 4, 5 and 6 (UG) – 40 Level 7 (PG) – 50
Plagiarism offences will receive standard penalties.

Detailed Brief for Individual/Group Assessment

See next page

Assignment Title: Main Coursework

Karen Robins - Updated November 2016

Assessment Brief

Description of the assignment:

Task 1. (50%) (approx. 1000 - 1200 words)

You are a policy advisor. You have heard heated debates regarding the role of derivatives and
structured finance instruments (e.g. futures, options, swaps, CDOs, CMOs, CDOs etc) in the 2008
financial crisis.
Critically evaluate the following comments:

Comment A.
“Derivatives are used by major corporations to hedge risks”

Comment B.
“Derivatives and other complex financial instruments have significantly increased systemic risk”

Mark scheme:

In your essay you should demonstrate:

- A good understanding of derivatives and structured financial instruments (20%)
- A good understanding of how derivatives can be utilized to hedge risks (20%)
- A good understanding of implications of these instruments to systemic risk (20%)
- Evidence of further reading (20%)
- Appropriate referencing (10%)
- Appropriate presentation (10%)

Task 2. (50%) (approx. 1000-1200 words)

You are a financial analyst. At various times you have heard comments on the term structure of interest
rates from one of your clients. With reference to appropriate theory evaluate the following comment

“the pure expectation theory of the term structure of interest rates is not a useful concept for valuing
debt instruments as the theory is not supported by real world evidence”

Your essay should demonstrate:

- An understanding of the role of term structure in valuing debt instruments, good understanding
pure expectation theory as well as main other theories (e.g. liquidity preference theory) (20%)
- A good discussion of literature and empirical studies examining the real-world validity of
expectation theory. (40%)
- Ability to critically evaluate literature and empirical studies reviewed (20).
- Appropriate referencing (10%)
- Appropriate presentation (10%)

Student Support and Guidance

● For further help, contact your module leader in their drop-in hours or by email.
● Use the Grading Criteria and Mark Scheme to help improve your work.

Karen Robins - Updated November 2016

Assessment Brief
● Go to CASE workshops, use the CASE website and drop-in hours
www.studynet.herts.ac.uk/go/CASE/
● Academic English for Business support is available through daily drop-ins from the CASE office. See
the CASE workshop timetable on the CASE main website page for details.
● Make full use of Library search to identify relevant academic material and the ‘Subject Toolkit for
Business’ which contains links to other Information Databases and the Information Management
contact details.
(http://www.studynet1.herts.ac.uk/ptl/common/LIS.nsf/lis/4DAF5390094771C2802575ED004212BF)
● Some tutors allow students to test their work using Turnitin. Guidance on submission to Turnitin via
StudyNet can be found by using the following link.
http://www.studynet1.herts.ac.uk/ptl/common/asu.nsf/resource+library/TURNITIN+FOR+STUDENTS
+2016+USER+GUIDE.pdf/$FILE/TURNITIN+FOR+STUDENTS+2016+USER+GUIDE.pdf

Karen Robins - Updated November 2016