{
  "id": "competency:msc-finance--capital-markets",
  "code": "CDU-BUS-FIN-900",
  "level": "MSc",
  "name": "MSc Finance — Capital Markets",
  "faculty": "Faculty of Commerce, Law and Management",
  "lineage": [
    {
      "institution": "Conquest Designer University",
      "year": 2026,
      "note": "authored from the brief and the CFA Institute body of knowledge; no prior institution is claimed"
    }
  ],
  "researchProject": "Pricing the instruments of a capital market from first principles: bonds, options, the cost of equity and the forward rate",
  "description": "The valuation tools of a capital-markets desk: bond price, Macaulay and modified duration and convexity; the Black–Scholes–Merton price and delta of European options; the CAPM required return with Sharpe, Treynor and Jensen’s alpha; and the forward exchange rate under covered interest parity.",
  "syllabus": [
    "Fixed income: price from yield, Macaulay and modified duration, convexity",
    "Derivatives: Black–Scholes–Merton with a continuous dividend yield; put–call parity; delta",
    "Equity: CAPM, Sharpe ratio, Treynor ratio, Jensen’s alpha",
    "Currencies: covered interest parity, forward points, the forward premium"
  ],
  "reference": {
    "Bond price": "Σ C/(1+y/f)^t + F/(1+y/f)^N",
    "Modified duration": "Macaulay duration ÷ (1 + y/f)",
    "BSM call": "S·e^(−qT)·N(d1) − K·e^(−rT)·N(d2); d1 = [ln(S/K) + (r − q + σ²/2)T] ÷ σ√T; d2 = d1 − σ√T",
    "CAPM": "E(R) = Rf + β·(E(Rm) − Rf)",
    "Covered interest parity": "F = S·(1 + r_d)^T ÷ (1 + r_f)^T (or S·e^((r_d − r_f)T) continuously)"
  },
  "role": "You are a capital-markets analyst explaining a valuation to a portfolio manager. State the model and its assumptions, show the numbers, and say which input the answer is most sensitive to.",
  "feeUsd": 1,
  "version": "1.0.0",
  "qualification": {
    "award": "MSc",
    "nqfLevel": 9,
    "qualificationType": "Master's Degree (HEQSF qualification type 9a)",
    "totalCredits": 180,
    "minCreditsAtExitLevel": 120,
    "iscedFields": [
      "041"
    ],
    "standards": [
      "CFA Institute Candidate Body of Knowledge — Fixed Income, Derivatives, Portfolio Management, Economics",
      "Black, F. & Scholes, M. (1973) J. Political Economy 81(3); Merton, R. C. (1973) Bell J. Economics 4(1)",
      "Sharpe, W. F. (1964) J. Finance 19(3) — the capital asset pricing model"
    ],
    "registration": "not registered"
  },
  "modules": [
    {
      "code": "CDU-BUS-FIN-900-901",
      "title": "Coursework — the executable units",
      "nqfLevel": 9,
      "credits": 60,
      "prerequisites": [],
      "coRequisites": [],
      "outcomes": [
        "answer every unit of the qualification against its published reference, with the working shown"
      ],
      "assessment": {
        "formative": [
          "worked examples re-run against the published reference",
          "seeded practice scenarios, deterministic per (pan, unit, attempt)"
        ],
        "summative": "every unit passed once through the seeded assessment (the seeded assessment room)",
        "passMark": 50,
        "subminimum": 40,
        "moderation": "internally assessed by the unit itself — its reference implementation is the marker; the working is published so anyone can re-run the mark (D-13.1 — no model marks anything)"
      },
      "unitIds": [
        "bond_price_duration",
        "black_scholes_merton",
        "capm_performance",
        "covered_interest_parity"
      ],
      "notionalHours": 600
    },
    {
      "code": "CDU-BUS-FIN-900-902",
      "title": "Research report",
      "nqfLevel": 9,
      "credits": 120,
      "prerequisites": [
        "CDU-BUS-FIN-900-901"
      ],
      "coRequisites": [],
      "outcomes": [
        "Pricing the instruments of a capital market from first principles: bonds, options, the cost of equity and the forward rate"
      ],
      "assessment": {
        "formative": [
          "worked examples re-run against the published reference",
          "seeded practice scenarios, deterministic per (pan, unit, attempt)"
        ],
        "summative": "the research report, assessed against the qualification’s published reference block",
        "passMark": 50,
        "subminimum": 40,
        "moderation": "internally assessed by the unit itself — its reference implementation is the marker; the working is published so anyone can re-run the mark (D-13.1 — no model marks anything)"
      },
      "unitIds": [],
      "notionalHours": 1200
    }
  ],
  "units": [
    {
      "id": "bond_price_duration",
      "name": "Bond price, duration and convexity",
      "answers": "What is this bond worth at this yield, and how sensitive is its price to a change in yield?",
      "example": {
        "faceValue": 1000,
        "couponRate": 0.06,
        "yieldToMaturity": 0.05,
        "years": 5,
        "frequency": "semiannual"
      },
      "reference": "CFA Institute CBOK, Fixed Income: price from yield to maturity, Macaulay and modified duration, convexity (periodic compounding)",
      "signature": {
        "input": {
          "faceValue": {
            "type": "number",
            "describe": "Par value repaid at maturity",
            "min": 0.01
          },
          "couponRate": {
            "type": "number",
            "describe": "Annual coupon rate, 0–1",
            "min": 0,
            "max": 1
          },
          "yieldToMaturity": {
            "type": "number",
            "describe": "Annual yield to maturity, 0–1",
            "min": 0,
            "max": 1
          },
          "years": {
            "type": "number",
            "describe": "Whole years to maturity",
            "min": 1,
            "max": 100
          },
          "frequency": {
            "type": "string",
            "describe": "Coupons per year",
            "oneOf": [
              "annual",
              "semiannual",
              "quarterly",
              "monthly"
            ]
          }
        },
        "output": {
          "price": {
            "type": "number",
            "describe": "Full price per the face value"
          },
          "macaulayDuration": {
            "type": "number",
            "describe": "Years"
          },
          "modifiedDuration": {
            "type": "number",
            "describe": "Percentage price change per unit change in yield"
          },
          "convexity": {
            "type": "number",
            "describe": "Years squared"
          }
        }
      }
    },
    {
      "id": "black_scholes_merton",
      "name": "Black–Scholes–Merton option price",
      "answers": "What are a European call and put worth, and what are their deltas?",
      "example": {
        "spot": 42,
        "strike": 40,
        "riskFreeRate": 0.1,
        "volatility": 0.2,
        "years": 0.5,
        "dividendYield": 0
      },
      "reference": "Black & Scholes (1973); Merton (1973) with a continuous dividend yield; CFA Institute CBOK, Derivatives",
      "signature": {
        "input": {
          "spot": {
            "type": "number",
            "describe": "Underlying price",
            "min": 0.0001
          },
          "strike": {
            "type": "number",
            "describe": "Exercise price",
            "min": 0.0001
          },
          "riskFreeRate": {
            "type": "number",
            "describe": "Continuously compounded risk-free rate",
            "min": -0.1,
            "max": 1
          },
          "volatility": {
            "type": "number",
            "describe": "Annual volatility σ",
            "min": 0.0001,
            "max": 5
          },
          "years": {
            "type": "number",
            "describe": "Time to expiry in years",
            "min": 0.0001,
            "max": 100
          },
          "dividendYield": {
            "type": "number",
            "describe": "Continuous dividend yield q",
            "min": 0,
            "max": 1,
            "default": 0
          }
        },
        "output": {
          "d1": {
            "type": "number",
            "describe": "d1"
          },
          "d2": {
            "type": "number",
            "describe": "d2"
          },
          "call": {
            "type": "number",
            "describe": "European call value"
          },
          "put": {
            "type": "number",
            "describe": "European put value"
          },
          "callDelta": {
            "type": "number",
            "describe": "e^(−qT)·N(d1)"
          },
          "putDelta": {
            "type": "number",
            "describe": "e^(−qT)·(N(d1) − 1)"
          }
        }
      }
    },
    {
      "id": "capm_performance",
      "name": "CAPM required return and risk-adjusted performance",
      "answers": "What return does the CAPM require of this portfolio, and did it beat it on Jensen’s, Sharpe’s and Treynor’s measures?",
      "example": {
        "riskFreeRate": 0.04,
        "beta": 1.2,
        "marketReturn": 0.1,
        "portfolioReturn": 0.13,
        "portfolioVolatility": 0.18
      },
      "reference": "Sharpe (1964) CAPM; Sharpe (1966) reward-to-variability; Treynor (1965); Jensen (1968) alpha — CFA Institute CBOK, Portfolio Management",
      "signature": {
        "input": {
          "riskFreeRate": {
            "type": "number",
            "describe": "Risk-free rate for the period",
            "min": -0.1,
            "max": 1
          },
          "beta": {
            "type": "number",
            "describe": "Portfolio beta",
            "min": -5,
            "max": 5
          },
          "marketReturn": {
            "type": "number",
            "describe": "Market return for the period",
            "min": -1,
            "max": 5
          },
          "portfolioReturn": {
            "type": "number",
            "describe": "Portfolio return for the period",
            "min": -1,
            "max": 5
          },
          "portfolioVolatility": {
            "type": "number",
            "describe": "Standard deviation of portfolio returns",
            "min": 0.0001,
            "max": 5
          }
        },
        "output": {
          "requiredReturn": {
            "type": "number",
            "describe": "Rf + β(Rm − Rf)"
          },
          "jensensAlpha": {
            "type": "number",
            "describe": "Rp − required"
          },
          "sharpeRatio": {
            "type": "number",
            "describe": "(Rp − Rf) ÷ σp"
          },
          "treynorRatio": {
            "type": "number",
            "describe": "(Rp − Rf) ÷ β"
          }
        }
      }
    },
    {
      "id": "covered_interest_parity",
      "name": "Forward rate under covered interest parity",
      "answers": "What forward exchange rate does covered interest parity imply, and is the foreign currency at a forward premium or discount?",
      "example": {
        "spot": 18.5,
        "domesticRate": 0.08,
        "foreignRate": 0.05,
        "years": 1,
        "compounding": "annual"
      },
      "reference": "Covered interest rate parity — CFA Institute CBOK, Economics: currency exchange rates (price quoted as domestic per unit of foreign)",
      "signature": {
        "input": {
          "spot": {
            "type": "number",
            "describe": "Spot rate, domestic per unit of foreign",
            "min": 0.000001
          },
          "domesticRate": {
            "type": "number",
            "describe": "Domestic interest rate per year",
            "min": -0.1,
            "max": 1
          },
          "foreignRate": {
            "type": "number",
            "describe": "Foreign interest rate per year",
            "min": -0.1,
            "max": 1
          },
          "years": {
            "type": "number",
            "describe": "Tenor in years",
            "min": 0.0001,
            "max": 30
          },
          "compounding": {
            "type": "string",
            "describe": "Rate convention",
            "oneOf": [
              "annual",
              "continuous"
            ]
          }
        },
        "output": {
          "forward": {
            "type": "number",
            "describe": "Forward rate, domestic per foreign"
          },
          "forwardPoints": {
            "type": "number",
            "describe": "Forward − spot"
          },
          "forwardPremium": {
            "type": "number",
            "describe": "Forward ÷ spot − 1 (positive: foreign at a premium)"
          }
        }
      }
    }
  ]
}