- Class Number 3614
- Term Code 3030
- Class Info
- Unit Value 6 units
- Mode of Delivery In Person
- Qiuyang Chen
- Qiuyang Chen
- 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
This course is designed to familiarise Master of Business Administration 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 Master of Business Administration 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 of finance knowledge for a senior management career.
Upon successful completion, students will have the knowledge and skills to:
- Describe financial transactions, institutions and markets, including money markets, stock markets, foreign exchange, derivatives markets and contracts.
- Explain the ideas behind the time value of money.
- Discuss the concept of diversification, including the risk and return relationship.
- Gauge the value of cash flows relating to a number of financial instruments as well as diverse projects under consideration by the firm.
- Evaluate optimal weights for a portfolio comprising of multiple financial assets.
- Integrate tailored derivative contracts for risk management purposes using the concepts of arbitrage.
- Source financial evidence and data to inform management practice and ethical decision-making.
Students undertaking this course will be taught fundamental skills in Finance that will be applied to 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 examinations are a calculator (scientific, non-programmable and not a financial calculator), a dictionary (which will be checked at the examination), pens and a ruler.
No required textbook.
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.
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.
Information Regarding Assessment
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.
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.
|Week/Session||Summary of Activities||Assessment|
|1||Topic: Intro to Financial Markets and Intro to Financial Maths Activity: Lecture/Workshop Reading: Lecture Notes 1; CFA Code of Ethics, CFA Standards of Professional Conduct, Sections I and VII|
|2||Topic: Time Value of Money – Valuing Shares Activity: Lecture/Workshop/Tutorial 1 Questions Reading: Lecture Notes 2|
|3||Topic: Time Value of Money – Valuing Debt Instruments Activity: Lecture/Workshop/Tutorial 2 Questions Reading: Lecture Notes 3||Quiz 1 (due by Friday, 5pm)|
|4||Topic: Time Value of Money – Making Investment Decisions Activity: Lecture/Workshop/Tutorial 3 Questions Reading: Lecture Notes 4|
|5||Topic: Diversification – Defining Risk and Understanding its Relationship with Return Activity: Lecture/Workshop/Tutorial 4 Questions Reading: Lecture Notes 5||Quiz 2 (due by Friday, 5pm)|
|6||Topic: Diversification – Portfolio Theory Activity: Lecture/Workshop/Tutorial 5 Questions Reading: Lecture Notes 6|
|7||Topic: Diversification – The Capital Asset Pricing Model (CAPM) and the Required Rate of Return for Risk Activity: Lecture/Workshop/Tutorial 6 Questions Reading: Lecture Notes 7||Quiz 3 (due by Friday, 5pm)|
|8||Topic: Valuation – Cost of Capital and Corporate Valuation Activity: Lecture/Workshop/Tutorial 7 Questions Reading: Lecture Notes 8|
|9||Topic: Arbitrage – Futures Contracts Activity: Lecture/Workshop/Tutorial 8 Questions Reading: Lecture Notes 9|
|10||Topic: Arbitrage – Options Contracts Activity: Lecture/Workshop/Tutorial 9 Questions Reading: Lecture Notes 10||Assignment Due (due by Friday, 5pm)|
|11||Topic: Arbitrage – Forwards, Futures and Options Contracts as Tools for Risk Management Activity: Lecture/Workshop/Tutorial 10 Questions Reading: Lecture Notes 11|
|12||Topic: Final Exam Details, Past Exam Practice Activity: Lecture/Tutorial 11 Questions Reading: Past Exam Examples|
No tutorial(s) in this course
|Assessment task||Value||Due Date||Return of assessment||Learning Outcomes|
|Online Quizzes||15 %||24/04/2020||01/05/2020||2,3|
|Individual Assignment||30 %||15/05/2020||29/05/2020||2,3,5|
|Final Examination||55 %||05/06/2020||02/07/2020||1,2,3,4,5|
* 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:
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.
Centrally administered examinations through Examinations, Graduations & Prizes will be timetabled prior to the examination period. Please check ANU Timetabling for further information. Further information about the examination will be provided in class and on Wattle closer to the time of the examination.
Assessment Task 1
Learning Outcomes: 2,3
· Students will be required to perform three online (Wattle) quizzes throughout the semester on their own (during weeks 3, 5 and 7).
· 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).
· Students will have a maximum of 20 minutes in duration to complete each quiz.
· Students will be able to complete each online quiz between 6pm on the Tuesday of each quiz week to 9pm on the Wednesday of each quiz week (a 27-hour window).
· The content for the quizzes will be limited to the required material for the topic on which the self-study tutorial material is based (i.e. previous week’s lecture material).
· Each of the three quizzes will count towards 5% of the overall course grade for a total of 15%.
· Students will receive their marked quizzes (with feedback) back the following week.
Assessment Task 2
Learning Outcomes: 2,3,5
· The assignment, to be completed individually in Excel (with explanatory notes provided throughout the spreadsheet), asks students to produce a valuation of a firm with multiple business units.
· Students will be required to estimate the value of the group before any potential improvements are taken into account (the current value of the firm) and subsequently consider the costs and benefits of internal improvements on offer to identify the key value drivers for each business unit. Considerations of external improvements in the form of either a sale of one or more business units to an interested third party or a liquidation of one or more business units will also be assessed as available options.
· Subsequent sensitivity and scenario modelling will allow students to check the internal consistency of the model, understand the sensitivity of the valuation to key assumptions and gauge the distribution of possible values by applying plausible variations to forecasts in the built cashflow model
· The assignment will be submitted online via Wattle (please keep a copy of the assignment for your records). 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 ANU Online.
· The assignment questions and instructions will be released on Wattle in week 5 (i.e., 27th of March 2020).
· The outcome and feedback of the assignment will be made available on Wattle no later than week 12 of the semester.
Assessment Task 3
Learning Outcomes: 1,2,3,4,5
The final examination will be open-book and based on all the work covered throughout the duration of the semester. The final examination is worth 55% 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. The exam details will be made available on Wattle no later than week 10 of the semester. This assessment task needs to be completed in pen (NOT PENCIL).
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.
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.
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.
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.
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.
The marked assignments will be returned to the students within two weeks of the assignment due date.
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.
Resubmission of Assignments
No re-submission of assessment tasks will be permitted.
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
Empirical Asset Pricing and Market Microstructure