• Class Number 2297
  • Term Code 3030
  • Class Info
  • Unit Value 6 units
  • Mode of Delivery In Person
    • Dr Kun Li
    • Dr Kun Li
  • Class Dates
  • Class Start Date 24/02/2020
  • Class End Date 05/06/2020
  • Census Date 08/05/2020
  • Last Date to Enrol 02/03/2020
SELT Survey Results

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. Explain in detail financial transactions, institutions and markets, including money markets, stock markets, foreign exchange, derivatives markets and contracts;
  2. Discuss in detail the concept of time value of money and calculate the value of cash flows relating to a number of financial instruments;
  3. Explain in detail the concept of diversification, including the risk and return relationship and calculate optimal weights for a portfolio comprising of two financial assets; and,
  4. Discuss in detail 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!), textbook and printing materials

Examination Material or equipment

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

Required Resources

Titman, S., Martin, T., Keown, A., and, J. Martin, Financial Management: Principles and Applications, 8th Edition, Pearson Education, 2018.

This textbook is available for 2 hour loan from the ANU 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

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

Information regarding assessment

As a further academic integrity control, students may be selected for a 15 minute individual oral examination of their written assessment submissions.

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.


It is preferable to contact the lecturer via email (kun.li@anu.edu.au)


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.


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.

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

Tutorial Registration

Tutorial signup for this course will be done via the Wattle website. Detailed information about signup times will be provided on Wattle or during your first lecture. 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
Online Quizzes 15 % 02/03/2020 22/05/2020 1,2,3,4
Mid-Semester Exam 25 % 03/04/2020 24/04/2020 1,2
Final Examination 60 % 04/06/2020 02/07/2020 3,4

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


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:

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.

Assessment Task 1

Value: 15 %
Due Date: 02/03/2020
Return of Assessment: 22/05/2020
Learning Outcomes: 1,2,3,4

Online Quizzes

  • 6 online quizzes will be held on the weeks specified in class structure and content.
  • Students can access quizzes on Pearson Mylab through wattle.
  • Demonstration on how to access Pearson Mylab will be provided in tutorials and a sample quiz will be provided in week 2.
  • Students’ best 5 marks will count towards 15% of their overall course grade.
  • Students should receive their online quizzes back immediately after submitting their answers.
  • Quiz will open for the whole week and once logged in, students will have 15 mins to finish the quiz. The results will be returned to students the week afterwards.
  • Students who choose not to access Pearson Mylab for online quizzes should contact course convenor at least one week before the quiz to sort out alternative assessment arrangement.

Assessment Task 2

Value: 25 %
Due Date: 03/04/2020
Return of Assessment: 24/04/2020
Learning Outcomes: 1,2

Mid-Semester Exam

  • This exam is optional and 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, and corresponding tutorials.
  • The mid-semester exam will count either 0% or 25% to a student’s overall course grade.
  • More details regarding the exam will be provided in week 5.
  • 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

Value: 60 %
Due Date: 04/06/2020
Return of Assessment: 02/07/2020
Learning Outcomes: 3,4

Final Examination

The final examination will be 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 in week 11. 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

You will be required to electronically sign a declaration as part of the submission of your assignment. Please keep a copy of the assignment for your records. Unless an exemption has been approved by the Associate Dean (Education) submission must be through Turnitin.

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

Individual assessment tasks may not allow for late submission. If submission of assessment tasks without an extension after the due date is not permitted, 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.

Extensions and Penalties

Extensions and late submission of assessment pieces are covered by the Student Assessment (Coursework) Policy and Procedure. Extensions may be granted 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).

Dr Kun Li
6125 4864

Research Interests

Finance, Industrial Organization, Macroeconomics

Dr Kun Li

Thursday 13:00 15:00
Thursday 13:00 15:00
Dr Kun Li
6125 4864

Research Interests

Dr Kun Li

Thursday 13:00 15:00
Thursday 13:00 15:00

Responsible Officer: Registrar, Student Administration / Page Contact: Website Administrator / Frequently Asked Questions