- Class Number 7470
- Term Code 3160
- Class Info
- Unit Value 6 units
- Mode of Delivery In Person
- Dr Anna von Reibnitz
- Dr Anna von Reibnitz
- Class Dates
- Class Start Date 26/07/2021
- Class End Date 29/10/2021
- Census Date 14/09/2021
- Last Date to Enrol 02/08/2021
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.
Upon successful completion, students will have the knowledge and skills to:
- Explain in detail financial transactions, institutions and markets, including money markets, stock markets, foreign exchange, derivatives markets and contracts;
- Discuss in detail the concept of time value of money and calculate the value of cash flows relating to a number of financial instruments;
- 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,
- Discuss in detail concepts of arbitrage, and utilise derivatives for risk management purposes.
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 calculator.
Examination Material or equipment
You will require reliable assess to Wattle and a calculator for the duration of the online quizzes and the online mid-semester and final exams.
No required textbook.
Titman, S., Martin, T., Keown, A., and J. Martin, Financial Management: Principles and Applications, 8th Edition, Pearson Education, 2019.
Note that the textbook readings from this recommended resource are optional. In addition, this textbook is available to students as a 2 hour loan from the ANU library, and an e-book can be accessed from: https://library.anu.edu.au/record=b5640022.
Students will be given feedback in the following forms in this course:
- Interactions with lecturer and tutor(s) in consultations and live tutorials/workshops.
- Through assessments where the lecturer and tutors will provide specific 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.
|Week/Session||Summary of Activities||Assessment|
|1||Topic: Course Overview, Introduction to Financial Markets & Time Value of Money; Activities: Lecture; 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 – Financial Maths; Activities: Lecture/Workshop/Tutorial (Tutorial 1 Questions); Reading: Lecture Notes 2|
|3||Topic: Time Value of Money – Valuing Shares; Activities: Lecture/Workshop/Tutorial (Tutorial 2 Questions); Reading: Lecture Notes 3|
|4||Topic: Time Value of Money – Valuing Debt Instruments; Activities: Lecture/Workshop/Tutorial (Tutorial 3 Questions); Reading: Lecture Notes 4||Quiz 1|
|5||Topic: Time Value of Money – Making Investment Decisions; Activities: Lecture/Workshop/Tutorial (Tutorial 4 Questions); Reading: Lecture Notes 5|
|6||Topic: Diversification – Defining Risk, Understanding its Relationship with Return & Calculating Returns; Activities: Lecture/Workshop (TBC)/Tutorial (Tutorial 5 Questions); Reading: Lecture Notes 6||Quiz 2|
|7||Topic: Diversification – CAPM and The Required Rate of Return for Risk; Activities: Lecture/Workshop (TBC)/Tutorial (Tutorial 6 Questions); Reading: Lecture Notes 7|
|8||Topic: Diversification – The Cost of Capital; Activities: Lecture/Workshop/Tutorial (Tutorial 7 Questions); Reading: Lecture Notes 8||Quiz 3|
|9||Topic: Arbitrage – Futures/Forwards Contracts; Activities: Lecture/Workshop/Tutorial (Tutorial 8 Questions); Reading: Lecture Notes 9||Quiz 4|
|10||Topic: Arbitrage – Futures/Forwards and Options Contracts; Activities: Lecture/Workshop/Tutorial (Tutorial 9 Questions); Reading: Lecture Notes 10|
|11||Topic: Arbitrage – Options Contracts; Activities: Lecture/Workshop/Tutorial (Tutorial 10 Questions); Reading: Lecture Notes 11||Quiz 5|
|12||Topic: Arbitrage – Risk Management and Review Workshop; Activities: Lecture/Workshop/Tutorial (Tutorial 11 Questions); Reading: Lecture Notes 12|
Tutorials will be available on campus, live through scheduled Zoom sessions and as pre-recorded videos. Information regarding enrolments for these options will be provided on Wattle during O-week.
|Assessment task||Value||Due Date||Return of assessment||Learning Outcomes|
|Wattle Quizzes||15 %||16/08/2021||29/10/2021||1,2,3,4|
|Mid-Semester Exam||25 %||30/08/2021||01/10/2021||1,2,3,4|
|Final Exam||60 %||04/11/2021||02/12/2021||1,2,3,4|
* 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:
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 Academic Integrity . 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.
Course content delivery will take the form of pre-recorded weekly lectures (available on Wattle), online weekly workshops (live through scheduled Zoom sessions, with the recordings available on Wattle) and weekly tutorials, delivered in hybrid format (on campus, live through scheduled Zoom sessions and as pre-recorded videos).
Centrally scheduled examinations through Examinations, Graduations & Prizes will be timetabled prior to the examination period. Please check ANU Timetabling for further information.
Assessment Task 1
Learning Outcomes: 1,2,3,4
Five online (Wattle) quizzes (each with 20 minutes of writing time) will be conducted throughout the semester to enable students to receive feedback on their learning and understanding of the material. These quizzes will run according to the schedule in the "Class Structure and Content" section of this summary (unless otherwise stated by the lecturer). The content for the quizzes will be limited to the required material for the topic on which the tutorial is held (i.e. the previous week’s lecture and workshop material). This assessment is to be completed individually. Every 20-minute quiz will run on Friday of each quiz week over a 60-minute window. The marked quizzes and the solutions will be provided during the following week on Wattle. Each quiz is worth 3% of the overall course grade. In total, the quizzes are worth 15% of the overall course grade. Details pertaining to the submission of quiz answers as well as a practice quiz (worth 0%) will be provided on Wattle and discussed during the first lecture. This assessment is to be completed individually.
Assessment Task 2
Learning Outcomes: 1,2,3,4
The mid-semester examination will be open-book and based on the content covered in lectures 1 to 4, inclusive, as well as content in corresponding workshops and tutorials. The mid-semester examination will last 2 hours, and be conducted over Wattle. It will be redeemable, and will therefore count towards either 0% or 25% of a student's overall course grade. The exam will include a mixture of theoretical and numerical questions. This assessment is to be completed individually. Students will be provided with further details regarding the exam as it approaches. Centrally-administered examinations through Examinations, Graduations & Prizes will be timetabled prior to the mid-semester examination period. The mid-semester exam will take place during week 6 or week 7 of the semester.
Assessment Task 3
Learning Outcomes: 1,2,3,4
The final examination will be open-book and based on all the content covered throughout the duration of the semester. The final examination will last 4 hours, and be conducted over Wattle. It will be 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. This assessment is to be completed individually. Students will be provided with further details regarding the exam as it approaches (no later than week 10).
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.
There are no assignments in the course.
There are no hardcopy submissions in the course.
Late submission not permitted. If submission of assessment tasks without an extension after the due date is not permitted, 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.
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.
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
Funds management; Asset pricing; Market efficiency.
Dr Anna von Reibnitz