• Offered by International and Development Economics Program
  • ANU College ANU College of Asia and the Pacific
  • Classification Advanced
  • Course subject International and Developmental Economics
  • Areas of interest Economics
  • Academic career PGRD
  • Course convener
    • AsPr Tatsuyoshi Okimoto
  • Mode of delivery In Person
  • Offered in Second Semester 2015
    See Future Offerings
The aim of this course is twofold. The first aim of this course introduces the modern finance theory. Topics covered include the optimal asset allocation, capital asset pricing model, arbitrage pricing theory, efficient market hypothesis, and option pricing. The second aim of this course studies the methodologies to apply these theories to the real data and reviews a variety of empirical applications from the previous studies.
The theoretical part of the course mostly focuses on the derivation and interpretation of the asset pricing models. The derivation can be very mathematical and the course puts more emphasis on the interpretation, so that students can obtain basic skills to use those asset pricing models in practice.
The quantitative part of the course introduces the computational skills to confirm some of the results of finance theories and the econometric methodologies to test the finance theory using real data. Students will be required to conduct several computer exercises for some of the quantitative and empirical applications using statistical and econometric software. Some of lectures will be taken place in the computer room to demonstrate how to conduct computer exercises with Excel and Eviews, if circumstances allow.

Learning Outcomes

Upon successful completion, students will have the knowledge and skills to:

1.    a knowledge of basic concept in finance

2.    an understanding of modern finance theory

3.    a review of empirical performance of asset pricing models

4.    technique required to apply asset pricing models to real data

5.    skills to interpret the results of empirical analysis 

Indicative Assessment

Assignments (20%, 4 times)

Mid-term examination (30%, 2 hours, week 7)

Final examination (50%, 2 hours, final week)

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The course consists of 13 weeks of lectures (2 hours per week) and tutorials (1 hour per week) for computer excises and problem solving.

Prescribed Texts

Bodie, Z., Kane, A. and Marcus, A.J. (2013), Investments (10th ed.), McGraw Hill.


Tuition fees are for the academic year indicated at the top of the page.  

If you are a domestic graduate coursework or international student you will be required to pay tuition fees. Tuition fees are indexed annually. Further information for domestic and international students about tuition and other fees can be found at Fees.

Student Contribution Band:
Unit value:
6 units

If you are an undergraduate student and have been offered a Commonwealth supported place, your fees are set by the Australian Government for each course. At ANU 1 EFTSL is 48 units (normally 8 x 6-unit courses). You can find your student contribution amount for each course at Fees.  Where there is a unit range displayed for this course, not all unit options below may be available.

6.00 0.12500
Domestic fee paying students
Year Fee
2015 $3762
International fee paying students
Year Fee
2015 $4566
Note: Please note that fee information is for current year only.

Offerings, Dates and Class Summary Links

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The list of offerings for future years is indicative only.
Class summaries, if available, can be accessed by clicking on the View link for the relevant class number.

Second Semester

Class number Class start date Last day to enrol Census date Class end date Mode Of Delivery Class Summary
3174 20 Jul 2015 07 Aug 2015 31 Aug 2015 30 Oct 2015 In Person N/A

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