UNIVERSITY OF LONDON 
FN2203: Principles of Asset Pricing 
Final Examination Guide and Notes 2025 
 
Part 01: About This Guide 
Part 02: Sample Final Examination Paper 
Part 03: Detailed Solutions and Explanations 
Part 04: Proven Exam Strategies and Tips 
 
The 24/7 Online Support You Deserve 
Need to reach out to us with questions or for help? You’ll connect with a private tutor who is extremely passionate about the course to provide assistance and help ensure that you’re on the right track to graduating. 
 
Looking for more study resources? 
Find out about all the services and resources available for students at the University of London

University of London - Principles of Asset Pricing (FN2203)

£35.00

ACADEMIC YEAR 2024 - 2025

University	University of London
Module Code	FN2203
Module Level	Level 5
Module Name	Principles of Asset Pricing
Notes Title	Final Examination Guide and Notes
Page Length	34

This comprehensive guide is designed to help you understand how the final examination for FN2203: Principles of Asset Pricing at the University of London will be structured and assessed. It provides insights into the types and formats of questions likely to appear on the exam. Fully updated for this academic year, this self-study set covers all examinable topics and includes sample questions with detailed solutions. This guide will assist you in identifying priority areas for review, key concepts, and essential topics to focus on as you prepare for the exam. It also offers an overview of the exam format and content expectations.

This course focuses on financial asset pricing, building on concepts from FN1024: Introduction to Finance. It emphasises statistical theory and mathematical methods, covering time discounting, present value, and valuation techniques for both equity and fixed-income assets. Equity valuation is explored through the constant growth model, while fixed-income valuation examines the term structure of interest rates and bond price sensitivity. The course also delves into portfolio diversification, asset pricing equilibrium, and efficient market theory. Additionally, students will learn about derivative pricing techniques, including the risk-neutral probability method and the replicating portfolio approach.

Main topics to be covered include present value calculations, bond and stock valuation, and portfolio theory. Students will study market efficiency, asset pricing models, and strategies for market outperformance. The course also covers mutual fund performance, factor models, and the pricing of derivative contracts such as forwards, futures, swaps, and options using methods like binomial models and Black-Scholes. By the end, students should be able to apply valuation techniques, assess optimal portfolios, and use equilibrium models in financial decision-making.

MODULE CODE	MODULE NAME
AC1025	Principles of Accounting
AC2091	Financial Reporting
AC2097	Management Accounting
AC3059	Financial Management
EC1002	Introduction to Economics
EC2020	Elements of Econometrics
EC2065	Macroeconomics
EC2066	Microeconomics
FN1024	Principles of Banking and Finance
FN2029	Financial Intermediation
FN2190	Asset Pricing and Financial Markets
FN2191	Principles of Corporate Finance
FN2203	Principles of Asset Pricing
FN2208	Financial Data Analysis
FN3023	Investment Management
FN3092	Corporate Finance
FN3142	Quantitative Finance
FN3204	Investments and Portfolio Management
FN3206	Derivatives and Risk Management
MN1178	Business and Management in a Global Context
MN2028	Managerial Economics
MN3141	Marketing Management
ST104A	Statistics 1
ST104B	Statistics 2
ST2187	Business Analytics, Applied Modelling & Prediction

University of London - Principles of Asset Pricing (FN2203)

INFORMATION

MODULE DESCRIPTION

RELATED MODULES