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 econometric implications of the finance theory for asset returns and reviews a variety of empirical applications.
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 empirical part of the course introduces the application of finance theory to the real data, and econometric methodology to test the finance theory. In addition, students will be required to conduct several computer exercises for some of the empirical applications using the real data and econometric softwares such as Excel and Eviews.
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)
The ANU uses Turnitin to enhance student citation and referencing techniques, and to assess assignment submissions as a component of the University's approach to managing Academic Integrity. While the use of Turnitin is not mandatory, the ANU highly recommends Turnitin is used by both teaching staff and students. For additional information regarding Turnitin please visit the ANU Online website.
Workload
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.
Fees
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:
- 2
- 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.
| Units | EFTSL |
|---|---|
| 6.00 | 0.12500 |
Course fees
- Domestic fee paying students
| Year | Fee |
|---|---|
| 2016 | $3660 |
- International fee paying students
| Year | Fee |
|---|---|
| 2016 | $4878 |
Offerings, Dates and Class Summary Links
ANU utilises MyTimetable to enable students to view the timetable for their enrolled courses, browse, then self-allocate to small teaching activities / tutorials so they can better plan their time. Find out more on the Timetable webpage.
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 |
|---|---|---|---|---|---|---|
| 8785 | 18 Jul 2016 | 29 Jul 2016 | 31 Aug 2016 | 28 Oct 2016 | In Person | N/A |