Foundations of Finance (FNCE90002)
Graduate courseworkPoints: 12.5On Campus (Parkville)
You’re currently viewing the 2018 version of this subject
Overview
| Availability | Semester 2 |
|---|---|
| Fees | Look up fees |
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: 3 November 2022