This course is designed to familiarise students with the components of the financial system as well as to introduce them to the three basic ideas underpinning finance: the time value of money; diversification; and, arbitrage. The aim of the course is to provide students with introductory exposure to financial transactions, institutions and markets including money markets, stock markets, foreign exchange, derivative markets and contracts. It provides students with a solid foundation for later studies in finance.

Learning Outcomes

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

1. Understand financial transactions, institutions and markets, including money markets, stock markets, foreign exchange, derivatives markets and contracts.
2. Understand the ideas behind the time value of money and be able to calculate the value of cash flows relating to a number of financial instruments.
3. Understand the concept of diversification, including the risk and return relationship and have the ability to caluclate optimal weights for a portfolio comprising of two financial assets.
4. Understand concepts of arbitrage, and utilise derivatives for risk management purposes.

Research-Led Teaching

Students undertaking this course will be taught fundamental skills in Finance that will be applied to many real life applications. Students will also be shown how these techniques are applied to research today.

Additional Course Costs

The only additional course costs are a non-programmable scientific calculator (not a financial calculator!) and printing materials.

Examination Material or equipment

The only permitted materials in the examination are a calculator (scientific, non-programmable calculator, and not a financial calculator), dictionary (which will be checked at the examination, pen and ruler.

Required Resources

Recommended Resources

Titman, S., Martin, T., Keown, A., and, J. Martin, Financial Management: Principles and Applications, 7th Edition, Pearson Education, 2016.

Note that the textbook readings from this recommended resource are optional. A copy of the textbook will be available on short term loan at Chifley library.

Staff Feedback

Students will be given feedback in the following forms in this course:

• Written and verbal feedback will be addressed to:
• The whole class; and.
• To individuals.

Student Feedback

ANU is committed to the demonstration of educational excellence and regularly seeks feedback from students. Students are encouraged to offer feedback directly to their Course Convener or through their College and Course representatives (if applicable). The feedback given in these surveys is anonymous and provides the Colleges, University Education Committee and Academic Board with opportunities to recognise excellent teaching, and opportunities for improvement. The Surveys and Evaluation website provides more information on student surveys at ANU and reports on the feedback provided on ANU courses.

Other Information

Assessment Requirements

Any student identified, either during the current semester or in retrospect, as having used ghost writing services will be investigated under the University’s Academic Misconduct Rule.

Email

If necessary, the lecturers and tutors for this course will contact students on their official ANU student email address. Information about your enrolment and fees from the Registrar and Student Services' office will also be sent to this email address.

Announcements

Students are expected to check the Wattle site for announcements about this course, e.g. changes to timetables or notifications of cancellations. Notifications of emergency cancellations of lectures or tutorials will be posted on the door of the relevant room.

Other

Consultation hours will be confirmed at the start of the semester.

Class Schedule

Week/Session	Summary of Activities	Assessment
1	Topic: Course Overview, Introduction to Financial Markets & Time Value of Money Activities: Lecture 1 Student Preparation: Lecture Notes 1, Titman et al: Ch. 2 & 5, pp. 610-613.
2	Topic: Time Value of Money: Financial Maths Activities: Lecture 2, Workshop Week 2, Tutorial 1 Student Preparation: Lecture Notes 2, Titman et al: Ch. 5 & 6	Tutorial Questions 1
3	Topic: Time Value of Money: Valuing Shares Activities: Lecture 3, Workshop Week 3, Tutorial 2 Student Preparation: Lecture Notes 3, Titman et al: pp. 4-11, Ch. 10 (pp.301-308 & 315 to end of the chapter).	Tutorial Questions 2 Quiz 1
4	Topic: Time Value of Money: Valuing Debt Instruments Activities: Lecture 4, Workshop Week 4, Tutorial 3 Student Preparation: Lecture Notes 4, Titman et al: Ch. 9 (until p. 281).	Tutorial Questions 3
5	Topic: Time Value of Money: Making Investment Decisions Activities: Lecture 5, Workshop Week 5, Tutorial 4 Student Preparation: Lecture Notes 5, Titman et al: pp. 378- 380 (read first), &, pp. 335-343.	Tutorial Questions 4 Quiz 2
6	Topic: Diversification: Defining Risk, Understanding its Relationship with Return & Calculating Returns Activities: Lecture 6, Workshop Week 6 (TBC), Tutorial 5 Student Preparation: Lecture Notes 6, Titman et al: Ch. 7 & pp. 223-233.	Tutorial Questions 5 Quiz 3
7	Topic: Diversification: CAPM and The Required Rate of Return for Risk Activities: Lecture 7, Workshop Week 7 (TBC), Tutorial 6 Student Preparation: Lecture Notes 7, Titman et al: pp. 233- 245.	Tutorial Questions 6
8	Topic: Diversification: The Cost of Capital Activities: Lecture 8, Workshop Week 8, Tutorial 7 Student Preparation: Lecture Notes 8, Titman et al: Ch. 14 (up to pp. 469).	Tutorial Questions 7
9	Topic: Arbitrage: Futures/Forwards Contracts Activities: Lecture 9, Workshop Week 9, Tutorial 8 Student Preparation: Lecture Notes 9, Titman et al: Ch. 20.	Tutorial Questions 8 Quiz 4
10	Topic: Arbitrage: Futures/Forwards and Options Contracts Activities: Lecture 10, Workshop Week 10, Tutorial 9 Student Preparation: Lecture Notes 10, Titman et al: Ch. 20.	Tutorial Questions 9
11	Topic: Arbitrage: Options Contracts Activities: Lecture 11, Workshop Week 11, Tutorial 10 Student Preparation: Lecture Notes 11, Titman et al: Ch. 20.	Tutorial Questions 10 Quiz 5
12	Topic: Arbitrage: Risk Management and Review Workshop Activities: Lecture 12, Workshop Week 12, Tutorial 11 Student Preparation: Lecture Notes 12, Titman et al: Ch. 20.	Tutorial Questions 11

Tutorial Registration

Please see Wattle for tutors’ information.

Tutorial signup for this course will be done via the Wattle website. Detailed information about signup times will be provided on Wattle. When tutorials are available for enrolment, follow these steps:

1. Log on to Wattle, and go to the course site.

2. Click on the link “Tutorial enrolment”

3. On the right of the screen, click on the tab “Become Member of ……” for the tutorial class you wish to enter.

4. Confirm your choice

If you need to change your enrolment, you will be able to do so by clicking on the tab “Leave group…” and then re-enrol in another group. You will not be able to enrol in groups that have reached their maximum number. Please note that enrolment in ISIS must be finalised for you to have access to Wattle.

Assessment Summary

Assessment task	Value	Due Date	Return of assessment	Learning Outcomes
In-Tutorial Quizzes	15 %	05/08/2019	25/10/2019	2,3,4
Mid-Semester Examination	25 %	26/08/2019	04/10/2019	1,2
Final Examination	60 %	31/10/2019	28/11/2019	1,2,3,4

* If the Due Date and Return of Assessment date are blank, see the Assessment Tab for specific Assessment Task details

Policies

ANU has educational policies, procedures and guidelines, which are designed to ensure that staff and students are aware of the University’s academic standards, and implement them. Students are expected to have read the Academic Misconduct Rule before the commencement of their course. Other key policies and guidelines include:

• Student Assessment (Coursework) Policy and Procedure
• Special Assessment Consideration Policy and General Information 
• Student Surveys and Evaluations
• Deferred Examinations
• Student Complaint Resolution Policy and Procedure

Assessment Requirements

The ANU is using 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. For additional information regarding Turnitin please visit the ANU Online website. In rare cases where online submission using Turnitin software is not technically possible; or where not using Turnitin software has been justified by the Course Convener and approved by the Associate Dean (Education) on the basis of the teaching model being employed; students shall submit assessment online via ‘Wattle’ outside of Turnitin, or failing that in hard copy, or through a combination of submission methods as approved by the Associate Dean (Education). The submission method is detailed below.

Moderation of Assessment

Marks that are allocated during Semester are to be considered provisional until formalised by the College examiners meeting at the end of each Semester. If appropriate, some moderation of marks might be applied prior to final results being released.

Examination(s)

Centrally administered examinations through Examinations, Graduations & Prizes will be timetabled prior to the examination period. Please check ANU Timetabling for further information. Exam scripts will not be returned.

Assessment Task 1

In-Tutorial Quizzes

·    Students will be required to sit 5 in-tutorial quizzes throughout the semester.

·    These quizzes will be run according to the schedule in the "Class Structure and Content" section of this summary (unless otherwise stated by the lecturer).

·    The quizzes will be 10 – 15 minutes in duration and held at the end of the tutorial.

·    Students MUST sit the quiz in the tutorial they are enrolled in, otherwise the quiz will not count.

·    The content for the quizzes will be limited to the required material for the topic on which the tutorial is held (the previous week’s lecture and workshop material).

·    Students’ best 4 marks will count towards 15% of their overall course grade.

·    Students will receive their marked quizzes back in the tutorial the following week.

·    This assessment task needs to be completed in pen (NOT PENCIL).

Note: Students are required to prepare worked solutions to tutorial questions, bring these solutions to tutorials, and be prepared to participate in tutorial discussions. This is an important step in preparing for the tutorial quizzes.

Assessment Task 2

Mid-Semester Examination

·    This exam is redeemable for students.

·    It is a closed book exam, with no formula sheet provided.

·    The questions will be a mixture of theory and practical questions.

·    Students will need to review and revise all material covered in lectures 1 to 4, inclusive (i.e. the time value of money topics), as well as content in corresponding workshops and tutorials.

·    The mid-semester exam will count towards either 0% or 25% of a student’s overall course grade.

·    More details regarding the exam will be provided as the exam approaches.

·    This assessment task needs to be completed in pen (NOT PENCIL).

Note: Mid-semester exams are expected to be offered in weeks 6 or 7. Deferred exams for mid-semester exams will also be offered. Like final exams, applications for deferred mid-semester exams will be handled centrally. Deferred mid-semester exams are likely to be held in approximately week 10. Centrally administered examinations through Examinations, Graduations & Prizes will be timetabled prior to the examination period. Please check ANU Timetabling for further information. Exam scripts will not be returned.

Assessment Task 3

Final Examination

The final examination will be closed-book and based on all the work covered throughout the duration of the semester. The final examination is worth 60% (or 85% if the mid-semester exam is redeemed) of the overall course grade. The exam will include a mixture of theoretical and numerical questions. Students will be provided with further details regarding the exam as it approaches. This assessment task needs to be completed in pen (NOT PENCIL). Centrally administered examinations through Examinations, Graduations & Prizes will be timetabled prior to the examination period. Please check ANU Timetabling for further information. Exam scripts will not be returned.

Academic Integrity

Academic integrity is a core part of the ANU culture as a community of scholars. At its heart, academic integrity is about behaving ethically, committing to honest and responsible scholarly practice and upholding these values with respect and fairness.

The ANU commits to assisting all members of our community to understand how to engage in academic work in ways that are consistent with, and actively support academic integrity. The ANU expects staff and students to be familiar with the academic integrity principle and Academic Misconduct Rule, uphold high standards of academic integrity and act ethically and honestly, to ensure the quality and value of the qualification that you will graduate with.

The Academic Misconduct Rule is in place to promote academic integrity and manage academic misconduct. Very minor breaches of the academic integrity principle may result in a reduction of marks of up to 10% of the total marks available for the assessment. The ANU offers a number of online and in person services to assist students with their assignments, examinations, and other learning activities. Visit the Academic Skills website for more information about academic integrity, your responsibilities and for assistance with your assignments, writing skills and study.

Online Submission

There are no assessment tasks that require online submission for this course.

Hardcopy Submission

For some forms of assessment (hand written assignments, art works, laboratory notes, etc.) hard copy submission is appropriate when approved by the Associate Dean (Education). Hard copy submissions must utilise the Assignment Cover Sheet. Please keep a copy of tasks completed for your records.

Late Submission

No submission of assessment tasks without an extension after the due date will be permitted. If an assessment task is not submitted by the due date, a mark of 0 will be awarded.

Referencing Requirements

Accepted academic practice for referencing sources that you use in presentations can be found via the links on the Wattle site, under the file named “ANU and College Policies, Program Information, Student Support Services and Assessment”. Alternatively, you can seek help through the Students Learning Development website.

Returning Assignments

There are no assignments for this course.

Extensions and Penalties

Extensions and late submission of assessment pieces are covered by the Student Assessment (Coursework) Policy and Procedure. The Course Convener may grant extensions for assessment pieces that are not examinations or take-home examinations. If you need an extension, you must request an extension in writing on or before the due date. If you have documented and appropriate medical evidence that demonstrates you were not able to request an extension on or before the due date, you may be able to request it after the due date.

Privacy Notice

The ANU has made a number of third party, online, databases available for students to use. Use of each online database is conditional on student end users first agreeing to the database licensor’s terms of service and/or privacy policy. Students should read these carefully. In some cases student end users will be required to register an account with the database licensor and submit personal information, including their: first name; last name; ANU email address; and other information.
In cases where student end users are asked to submit ‘content’ to a database, such as an assignment or short answers, the database licensor may only use the student’s ‘content’ in accordance with the terms of service – including any (copyright) licence the student grants to the database licensor. Any personal information or content a student submits may be stored by the licensor, potentially offshore, and will be used to process the database service in accordance with the licensors terms of service and/or privacy policy.
If any student chooses not to agree to the database licensor’s terms of service or privacy policy, the student will not be able to access and use the database. In these circumstances students should contact their lecturer to enquire about alternative arrangements that are available.

Distribution of grades policy

Academic Quality Assurance Committee monitors the performance of students, including attrition, further study and employment rates and grade distribution, and College reports on quality assurance processes for assessment activities, including alignment with national and international disciplinary and interdisciplinary standards, as well as qualification type learning outcomes.

Since first semester 1994, ANU uses a grading scale for all courses. This grading scale is used by all academic areas of the University.

Support for students

The University offers students support through several different services. You may contact the services listed below directly or seek advice from your Course Convener, Student Administrators, or your College and Course representatives (if applicable).

• ANU Health, safety & wellbeing for medical services, counselling, mental health and spiritual support
• ANU Diversity and inclusion for students with a disability or ongoing or chronic illness
• ANU Dean of Students for confidential, impartial advice and help to resolve problems between students and the academic or administrative areas of the University
• ANU Academic Skills and Learning Centre supports you make your own decisions about how you learn and manage your workload.
• ANU Counselling Centre promotes, supports and enhances mental health and wellbeing within the University student community.
• ANUSA supports and represents undergraduate and ANU College students
• PARSA supports and represents postgraduate and research students