UNIVERSITY OF WARWICK

Level: Undergraduate Level 2

IB253: Principles of Finance 1

Final Examination Guide and Notes 2026

Part 01: About This Guide

Part 02: Sample Final Examination Paper

Part 03: Suggested Solutions to Final Exam Paper

Part 04: Final Examination - Hints and Tips

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University of Warwick - Principles of Finance 1 (IB253)

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ACADEMIC YEAR 2026 - 2027

University	University of Warwick
Department	Warwick Business School
Module Code	IB253
Credit Value	15
Module Name	Principles of Finance 1
Notes Title	Final Examination Guide and Notes
Page Length	28

This guide offers students an excellent opportunity to familiarise themselves with the content and format of the updated 2026 final examination for IB253: Principles of Finance 1 at the University of Warwick. It provides valuable practice with effective exam techniques, focusing on core exam questions and featuring clear, straightforward diagrams to enhance understanding and recall during the actual exam. Fully revised and up-to-date, this self-study resource comprehensively covers all topics from the latest module edition, equipping students to approach the final examination with confidence.

(IB253) Principles of Finance 1 introduces students to the fundamentals of finance, focusing on the functioning and importance of equity, bond, and derivatives markets. It equips students with practical skills to price financial securities using quantitative methods while fostering a critical understanding of risk-return trade-offs, portfolio optimisation, and market efficiency. The module covers key topics, including financial arithmetic, the Capital Asset Pricing Model (CAPM), bond pricing and interest rate structures, and theoretical models for derivatives pricing, such as the binomial and Black-Scholes frameworks. Students will explore the Efficient Markets Hypothesis (EMH), its empirical tests, and implications, gaining insight into market anomalies and speculative bubbles. By bridging theory and practice, this module prepares students for advanced academic and professional pursuits, enabling them to analyse financial markets critically, apply quantitative techniques effectively, and reflect on the limitations of financial models.

MODULE CODE	MODULE NAME
EC106	Introduction to Economics
EC108	Macroeconomics 1
EC122	Statistical Techniques A
EC124	Statistical Techniques B
EC203	Applied Econometrics
EC226	Econometrics 1
EC238	Economics 2: Microeconomics
EC239	Economics 2: Macroeconomics
EC306	Econometrics 2
IB114	Financial Management
IB132	Foundations of Finance
IB133	Foundations of Accounting
IB146	Accounting for Business
IB148	Principles of Marketing
IB232	Issues in Management Accounting
IB234	Financial Reporting 2
IB235	Finance 1: Financial Markets
IB236	Finance 2: Corporate Finance
IB253	Principles of Finance 1
IB254	Principles of Finance 2
IB359	Derivatives and Risk Management
IB3J8	Banks and Financial Systems

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University of Warwick - Principles of Finance 1 (IB253)

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