• Class Number 6293
  • Term Code 3360
  • Class Info
  • Unit Value 6 units
  • Mode of Delivery In Person
    • AsPr Patrick Beissner
  • Class Dates
  • Class Start Date 24/07/2023
  • Class End Date 27/10/2023
  • Census Date 31/08/2023
  • Last Date to Enrol 31/07/2023
SELT Survey Results

This course examines the economic principles that determine the allocation of resources through time in market economies. It uses supply and demand relationships to value capital assets (or projects more generally). There is a detailed treatment of the effects of time, risk and misspecification on capital asset prices. The impact of liquidity on our understanding of financial economics will also be discussed.


Learning Outcomes

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

  1. define the classical finance model that underpins modern finance;
  2. explain how securities are priced and affected by the institutional arrangements in securities markets,
  3. demonstrate an understanding of the role played by time, uncertainty, information and misspecification in evaluating financial instruments;
  4. analyse the role played by arbitrage in finance markets and its impact on security prices;
  5. demonstrate an in-depth understanding of how security prices are determined in the Consumption Capital Asset Pricing Model, and the role played by the assumptions in the model;
  6. identify the assumptions behind the the Hansen-Jagannathan bounds and the mean-variance frontier as basis for understanding the factors that determine the portfolio choice;
  7. demonstrate an understanding of the role of complete markets in financial markets;
  8. demonstrate an understanding of how market frictions can impact financial decisions and asset prices.

Research-Led Teaching

The material taught in this course is directly relevant to pricing derivatives and macro finance that have been considered by economists in academia, and the financial industry.

Field Trips


Additional Course Costs


Required Resources

Lengwiler, Yvan. Microfoundations of financial economics: an introduction to general equilibrium asset pricing. Princeton: Princeton University Press, 2004.

The book is available free online: https://pdfs.semanticscholar.org/2ad2/69e4ba8001b9fdd9323dfd1d548751d79860.pdf

Staff Feedback

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

  • written comments
  • verbal comments
  • feedback to whole class, groups, individuals, focus group etc

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). 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.

Class Schedule

Week/Session Summary of Activities Assessment
1 Week 1-3: Financial Assets, Basic Concepts in Finance and Utility under Risk and Maximization Chapter 2, 4 and 8.2; Problem Set 1 due week 3
2 Week 4-6: Arrow Debreu/Radner Economies, Risk Neutral Probabilities, CAPM Chapter 3
3 Week 7-9: Static and dynamic Finance, CCAPM Chapter 5; Problem Set 2 due week 9
4 Week 10-12: Dynamic Finance, Puzzles and Extensions Chapter 6,7

Tutorial Registration

All tutorials this semester will be delivered on-campus.

You are expected to attend one tutorial each week from Week 2 onwards. 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 Summary

Assessment task Value Due Date Return of assessment Learning Outcomes
Take home problem set I 20 % 14/08/2023 17/08/2023 1
Take home problem set II 20 % 02/10/2023 15/10/2023 3
Exam 2 (final) 60 % * * 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:

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 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.


Delivery of this course will be on campus. Details on the delivery of this course and expectations of student participation are outlined in further detail on the Wattle course site in O-week. Attendance at synchronous activities, while not compulsory, is expected in line with “Code of Practice for Teaching and Learning”, clause 2 paragraph (b).

Course content will be delivered through face-to-face lectures and tutorial, supplemented by Consultation times, which will be available each day. Echo360 recordings of the lectures will be available in case you are unable to attend a lecture. There are no recordings of tutorial material.

Tutorials for this course are a discussion-based class. Providing worked solutions would not effectively compensate for missing a tutorial. Students who, through unavoidable and unplanned occurrences, are unable to attend a tutorial one week are encouraged to work through the problems and attend a consultation session for discussion and solutions.

Assessment Task 1

Value: 20 %
Due Date: 14/08/2023
Return of Assessment: 17/08/2023
Learning Outcomes: 1

Take home problem set I

In week 4 a problem set will be delivered through wattle. They will cover material from the preceeding 3 weeks lectures and tutorials.

More information will be provided on the Wattle course site in week 2.

The questions in the problem set are formulated in a way so that a solution is a mix of short explaining text and calculations.

Form: Student's solutions need to be uploaded via Wattle. Corrected solutions will be uploaded on Wattle.

Assessment Task 2

Value: 20 %
Due Date: 02/10/2023
Return of Assessment: 15/10/2023
Learning Outcomes: 3

Take home problem set II

In week 9 a problem set will be delivered through wattle. They will cover material from the preceeding 3 weeks lectures and tutorials. More details will be provided on Wattle in week 8.

The questions in the problem set are formulated in a way so that a solution is a mix of short explaining text and calculations.

Form: Student's solutions need to be uploaded via Wattle. Corrected solutions will be uploaded on Wattle.

Assessment Task 3

Value: 60 %
Learning Outcomes: 1,2,3,4

Exam 2 (final)

This will cover material from weeks 1-12 lectures and tutorials.

This will be held during the ANU Exam block at the end of the semester.

The exam run in-person (on campus).

More information around week 10.

written exam Duration approx 180min

Academic Integrity

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.

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 or may not allow for late submission. Policy regarding late submission is detailed below:

  • 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.

Referencing Requirements

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.

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).

AsPr Patrick Beissner

Research Interests

AsPr Patrick Beissner

Wednesday 12:00 13:00

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