Section: UNIT TWO : FINANCIAL MARKETS AND ASSET PRICING | AST2333: Actuarial Mathematics | University of Rwanda

Section outline

Aim of the unit: This unit aims- to provides a short introduction to financial markets mostly capital markets and asset pricing, notably interest rates models.

Intended learning outcomes:

At the end of this unit, you will be able to:
    1. Describe the important differences between the stock, bond, and derivative securities.;

    2. Critically evaluate the evidence for informational efficiency of stock markets;

    3. Explain how to value a bond by using present value.
- Select activity Slides for the chapter two
  
  Slides for the chapter two File PDF
  
  Students must
  
  Mark as done
  
  23.3 MB
- Select activity E-tivity 2.1
  
  E-tivity 2.1 Forum
  
  The aim of this e-tivity is to provide essential knowledge and a short introduction to stock markets.
  
  From your respective groups, do the following:
  
  Read the following resources:
      • “Lecture notes/slides”
      • “Stock market terms and definitions” available at https://www.cma.rw/index.php?id=81”
  
  Task:
      1. Join his/her respective group discussion about 90 minutes
  
      2. Describe the components of the stock market and conceptualize them for the Rwanda capital market.
  
      3. Post your work in the discussion forums by Wednesday at 23h30.
  
      4. Read what other students posted in your team and comment on at least two work of your team.
  
      5. Send the final work to your e-moderator for assessment and send feedback by Friday at 23h00 in the week this unit is taught.
  
  Not available unless: The activity E-tivity 1.3 is marked complete
- Select activity E-tivity 2.2
  
  E-tivity 2.2 Forum
  
  This e-tivity 2.2 is to provide the essential knowledge on the efficient market.
  
  From your respective groups, do the following:
  
  Read the following resources:
      • “Lecture notes/slides”
  
      • “Richard B., et al (2020). Efficient Markets and Behavioral Finance. Principles of Corporate Finance(pp,338-359). McGraw-Hill Education, 2 Penn Plaza, New York, NY 10121.”
  
  Task:
      1. Join his/her respective group discussion about 90 minutes
  
      2. How is the stock market efficient?
  
      3. Post your work in the discussion forums by Wednesday at 23h30.
  
      4. Read what other students posted in your team and comment on at least two work of your team.
  
      5. Send the final work to your e-moderator for assessment and send feedback by Friday at 23h00 in the week this unit is taught.
  
  Not available unless: The activity E-tivity 2.1 is marked complete
- Select activity Assignment Two(E-tivity 2.3)
  
  Assignment Two(E-tivity 2.3)
  
  This e-tivity 2.3 is designed as an assignment to be submitted helps well prepare you to understand the basics of bond valuation.
  
  Read the following resources:
      • “Bond Valuation Overview” available at https://einvestingforbeginners.com/bond-valuation-daah/"
      • Lecture notes/slides
  
  Task:
      1. Describe the regulations and valuation of bond markets in Rwanda.
  
      2. Send the file of your summary to the e-moderator electronic mail(nhategekimana@ur.ac.rw) before the start of a new unit, exactly by Friday at 23h00 in the week this unit is taught.
  
  Not available unless: The activity E-tivity 2.2 is marked complete