- Class Number 7185
- Term Code 3260
- Class Info
- Unit Value 6 units
- Mode of Delivery In Person
- Dr Jenni Bettman
- Dr Jenni Bettman
- Class Dates
- Class Start Date 25/07/2022
- Class End Date 28/10/2022
- Census Date 31/08/2022
- Last Date to Enrol 01/08/2022
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 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).
Examination Material or equipment
The mid-semester and final examination will be available through Wattle. Please see the Wattle course site for information on examination material, which will be released by the end of week 4 (for the mid-semester examination) and by the end of week 10 (for the final examination).
Both these examinations are centrally scheduled examinations through Examinations, and will be timetabled prior to the examination period. Please check ANU Timetabling for further information.
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/lectures.
- 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). Feedback can also be provided to Course Conveners and teachers via the Student Experience of Learning & Teaching (SELT) feedback program. SELT surveys are confidential and also provide the Colleges and ANU Executive with opportunities to recognise excellent teaching, and opportunities for improvement.
You final mark for the course will be based on the raw marks allocated for each of your assessment items. However, your final mark may not be the same number as produced by that formulate, as marks may be scaled. Any scaling applied will preserve the rank order of raw marks (i.e. if your raw mark exceeds that of another student, then your scaled mark will exceed or be the same as the scaled mark of that student), and may result in a score that is either higher or lower than the raw mark calculated.
Support for Students
The University offers a number of support services for students. Information on these is available online from http://students.anu.edu.au/studentlife/
If necessary, the lecturer and tutor(s) for this course will contact students on their official ANU student email address. Information about your enrollment 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.
As a further academic integrity control, students may be selected for a 15 minutes 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.
|Week/Session||Summary of Activities||Assessment|
|1||Topic: Course Overview, Introduction to Financial Markets & Time Value of Money; Activities: Lecture; 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; Reading: Lecture Notes 2||Tutorial 1 Questions|
|3||Topic: Time Value of Money – Valuing Shares & Debt Instruments; Activities: Lecture/Workshop/Tutorial; Reading: Lecture Notes 3||Tutorial 2 Questions Practice Quiz 1|
|4||Topic: Time Value of Money – Making Investment Decisions; Activities: Lecture/Workshop/Tutorial; Reading: Lecture Notes 4||Tutorial 3 Questions Practice Quiz 2|
|5||Topic: Time Value of Money – Defining Risk, Understandings its Relationship with Return & Calculating Returns; Activities: Lecture/Workshop/Tutorial; Reading: Lecture Notes 5||Tutorial 4 Questions Practice Quiz 3|
|6||Topic: Diversification – CAPM and The Required Rate of Return for Risk; Activities: Lecture/Workshop/Tutorial ; Reading: Lecture Notes 6||Tutorial 5 Questions|
|7||Topic: Diversification – The Cost of Capital; Activities: Lecture/Workshop/Tutorial; Reading: Lecture Notes 7||Tutorial 6 Questions|
|8||Topic: Arbitrage - Futures and Forward Contracts; Activities: Lecture/Workshop/Tutorial; Reading: Lecture Notes 8||Tutorial 7 Questions Practice Quiz 4|
|9||Topic: Arbitrage – Futures, Forwards and Options Contracts; Activities: Lecture/Workshop/Tutorial; Reading: Lecture Notes 9||Tutorial 8 Questions Practice Quiz 5|
|10||Topic: Arbitrage – Options Contracts; Activities: Lecture/Workshop/Tutorial; Reading: Lecture Notes 10||Tutorial 9 Questions|
|11||Topic: Arbitrage – Forwards, Futures and Options Contracts for Risk Management; Activities: Lecture/Workshop/Tutorial; Reading: Lecture Notes 11||Tutorial 10 Questions|
|12||Topic: Review Lecture; Activities: Lecture/Workshop/Tutorial; Reading: Lecture Notes 12||Tutorial 11 Questions|
Tutorials will be available on campus, live through scheduled Zoom sessions and as pre-recorded videos. 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 (https://www.anu.edu.au/students/program-administration/timetabling)
|Assessment task||Value||Due Date||Return of assessment||Learning Outcomes|
|Mid-Semester Examination||40 %||29/08/2022||30/09/2022||1,2,3,4|
|Final Examination||60 %||03/11/2022||01/12/2022||1,2,3,4|
|Practice Quizzes||0 %||08/08/2022||12/08/2022||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 Integrity Rule before the commencement of their course. Other key policies and guidelines include:
- Academic Integrity Policy and Procedure
- Student Assessment (Coursework) Policy and Procedure
- Special Assessment Consideration Guideline and General Information
- Student Surveys and Evaluations
- Deferred Examinations
- Student Complaint Resolution Policy and Procedure
- Code of practice for teaching and learning
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 Skills 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.
Course content delivery will take a hybrid format. The weekly lectures will be delivered on campus (recorded and available via echo360 on Wattle). Weekly workshops (available via echo360 on Wattle) will be pre-recorded and weekly tutorials will be delivered in hybrid format (on campus, live through scheduled Zoom sessions (not recorded) and also available as separate 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
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. The mid-semester examination will be completed individually, with students required to submit their answers by uploading their handwritten or typed solutions in Wattle (a practice activity to familiarise students with this mode of submission will be provided on Wattle prior to the mid-semester examination). It will be redeemable, and will therefore count towards either 0% or 40% of a student's overall course grade. Students will be provided with further details regarding the exam by the end of Week 4. 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 2
Learning Outcomes: 1,2,3,4
The final examination will be based on all work throughout the semester and will be conducted over Wattle. This four-hour final examination is worth 60% of the overall course grade (if the mid-semester examination is NOT redeemed). The exam will include a mixture of theoretical and numerical questions. Students will have only one attempt to complete this exam. Students will be required to submit their answers by uploading their handwritten or typed solutions in Wattle. Students will be provided with further details regarding the final examination by the end of Week 10.
Assessment Task 3
Learning Outcomes: 1,2,3,4
Five practice quizzes (each approximately 30 minutes in duration) will be released throughout the semester to enable students to receive feedback on their learning and understanding of the material. These quizzes will not count towards the assessment for the course, but will rather assist students in assessing their learning and understanding of the material covered. The practice quizzes will be released as per the schedule in the class overview. Please note the quiz will be released at the beginning of the week via Wattle, with solutions posted on Wattle by the end of the week. These practice quizzes are to be completed individually.
Academic integrity is a core part of the ANU culture as a community of scholars. The University’s students are an integral part of that community. The academic integrity principle commits all students to engage in academic work in ways that are consistent with, and actively support, academic integrity, and to uphold this commitment by behaving honestly, responsibly and ethically, and with respect and fairness, in scholarly practice.
The University expects all staff and students to be familiar with the academic integrity principle, the Academic Integrity Rule 2021, the Policy: Student Academic Integrity and Procedure: Student Academic Integrity, and to uphold high standards of academic integrity to ensure the quality and value of our qualifications.
The Academic Integrity Rule 2021 is a legal document that the University uses to promote academic integrity, and manage breaches of the academic integrity principle. The Policy and Procedure support the Rule by outlining overarching principles, responsibilities and processes. The Academic Integrity Rule 2021 commences on 1 December 2021 and applies to courses commencing on or after that date, as well as to research conduct occurring on or after that date. Prior to this, the Academic Misconduct Rule 2015 applies.
The University commits to assisting all students to understand how to engage in academic work in ways that are consistent with, and actively support academic integrity. All coursework students must complete the online Academic Integrity Module (Epigeum), and Higher Degree Research (HDR) students are required to complete research integrity training. The Academic Integrity website provides information about services available to assist students with their assignments, examinations and other learning activities, as well as understanding and upholding academic integrity.
You will be required to electronically sign a declaration as part of the submission of your assignment/examination. Please keep a copy of the assignment/examination for your records. Unless an exemption has been approved by the Associate Dean (Education) submission must be through Turnitin.
There are no hardcopy submissions in the course.
No late submission of assessment tasks will be permitted. If an assessment task is not submitted by the due date and time, a mark of 0 will be awarded.
The Academic Skills website has information to assist you with your writing and assessments. The website includes information about Academic Integrity including referencing requirements for different disciplines. There is also information on Plagiarism and different ways to use source material.
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 Access 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
Current research interests include: anomalies in equity markets; behavioural finance; and, micro-finance.
Dr Jenni Bettman