• Offered by Crawford School of Public Policy
  • ANU College ANU College of Asia and the Pacific
  • Classification Advanced
  • Course subject International and Developmental Economics
  • Areas of interest Economics

The aim of this course is twofold. The first is to introduce modern finance theory. Topics covered include optimal asset allocation, capital asset pricing model, arbitrage pricing theory, efficient market hypothesis, and event study. The second is to study the econometric implications of the finance theory for asset returns and to review a variety of empirical applications.

The theoretical part of this course focuses mainly on the derivation and interpretation of the asset pricing models. The derivation can be very mathematical, so the course puts more emphasis on the interpretation so students can obtain the basic skills for using the models in practice. The empirical part of this course introduces the application of finance theories to real data then discusses econometric methodology to test these theories. In addition, students will be required to conduct several computer exercises for some of the empirical applications using the real data and econometric applications such as Excel and EViews.

Learning Outcomes

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

  1. Demonstrate a working knowledge of concepts in finance
  2. Understand and critically engage in theory of modern finance
  3. Apply techniques required for asset pricing models to real data sets
  4. Demonstrate the required skills to interpret results of empirical analysis

Indicative Assessment

  1. Assignments (10) [LO 1,2,3,4]
  2. Mid-term examination (40) [LO 1,2,4]
  3. Final examination (50) [LO 1,2,4]

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The course consists of 12 weeks of lectures (2 hours per week) including weekly computer lab/tutorial sessions.

Inherent Requirements

Not applicable

Prescribed Texts

Bodie, Z., Kane, A. and Marcus, A.J. (2013), Investments (10th ed.), McGraw Hill.


Tuition fees are for the academic year indicated at the top of the page.  

Commonwealth Support (CSP) Students
If you have been offered a Commonwealth supported place, your fees are set by the Australian Government for each course. At ANU 1 EFTSL is 48 units (normally 8 x 6-unit courses). More information about your student contribution amount for each course at Fees

Student Contribution Band:
Unit value:
6 units

If you are a domestic graduate coursework student with a Domestic Tuition Fee (DTF) place or international student you will be required to pay course tuition fees (see below). Course tuition fees are indexed annually. Further information for domestic and international students about tuition and other fees can be found at Fees.

Where there is a unit range displayed for this course, not all unit options below may be available.

6.00 0.12500
Domestic fee paying students
Year Fee Description
2023 $4560 Standard Rate
2023 $3600 Grandfathered Rate*

*continuing students in nominated programs only. See fee website

International fee paying students
Year Fee
2023 $5820
Note: Please note that fee information is for current year only.

Offerings, Dates and Class Summary Links

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The list of offerings for future years is indicative only.
Class summaries, if available, can be accessed by clicking on the View link for the relevant class number.

Winter Session

Class number Class start date Last day to enrol Census date Class end date Mode Of Delivery Class Summary
On Campus
6535 22 Jul 2024 21 Jul 2024 09 Aug 2024 25 Oct 2024 In Person N/A
6536 22 Jul 2024 21 Jul 2024 09 Aug 2024 25 Oct 2024 Online N/A

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