• Offered by Research School of Economics
  • ANU College ANU College of Business and Economics
  • Classification Advanced
  • Course subject Economics
  • Areas of interest Economics
  • Academic career PGRD
  • Mode of delivery In Person
  • Co-taught Course
  • Offered in First Semester 2023
    Second Semester 2023
    See Future Offerings

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.

Other Information

Indicative Assessment

  1. Assessment will consist of a Final Exam, mid-semester exam(s), in-class quizzes and a project, or some combination thereof. See the Class Summary for details. (100) [LO 1,2,3,4,5,6,7,8]

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Workload

130 hours in total over the semester consisting of lectures, tutorials/workshops and private study time.

Inherent Requirements

Not applicable

Requisite and Incompatibility

To enrol in this course you must have completed the equivalent of, or have concurrent enrolment in ECON8025 and ECON8013. Incompatible with ECON4437.

Prescribed Texts

See Class Summary

Fees

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:
34
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.

Units EFTSL
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

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.

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.

First Semester

Class number Class start date Last day to enrol Census date Class end date Mode Of Delivery Class Summary
4256 20 Feb 2023 27 Feb 2023 31 Mar 2023 26 May 2023 In Person N/A

Second Semester

Class number Class start date Last day to enrol Census date Class end date Mode Of Delivery Class Summary
6293 24 Jul 2023 31 Jul 2023 31 Aug 2023 27 Oct 2023 In Person N/A

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