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Foundations of Finance (FNCE90002)

Graduate courseworkPoints: 12.5On Campus (Parkville)

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Overview

Year of offer2017
Subject levelGraduate coursework
Subject codeFNCE90002
Campus
Parkville
Availability
Semester 2
FeesSubject EFTSL, Level, Discipline & Census Date

This subject involves a study of the theoretical underpinnings of modern finance. Topics covered include choice under uncertainty, portfolio theory, asset pricing models, option pricing models, investment evaluation, corporate financial policy, agency theory.

Intended learning outcomes

On successful completion of this subject students should be able to:Understand consumption and investment decisions and the role of capital markets in these decisions

  • Understand individual preferences and choices under uncertainty, including the axiomatic foundations of utility theory
  • Understand how and when individual choices affect equilibrium prices; CAPM and variants
  • Understand the concept of arbitrage and its implications for the value of investments in real and financial assets
  • Apply the preceding to portfolio choices, financing choices, and other financial decisions facing investors and firms.

Generic skills

On successful completion of this subject, students should have improved the following generic skills:

  • Oral communication
  • Written communication
  • Problem solving
  • Statistical reasoning
  • Application of theory to practice
  • Interpretation and analysis
  • Critical thinking
  • Synthesis of data and other information
  • Evaluation of data and other information

Last updated: 16 August 2017