Finance Theory - Investments (FNCE90041)
Graduate courseworkPoints: 12.5On Campus (Parkville)
Overview
| Availability | Semester 2 |
|---|---|
| Fees | Look up fees |
This subject provides an overview of capital market theory and evidence. Theoretical topics covered include asset pricing models, behavioural finance, general equilibrium models, models of the term structure of interest rates, models of the relation between forward and futures prices and option pricing models. Empirical topics covered include the time-series behaviour of returns, the impact of market microstructure on the behaviour of returns, event studies, tests of portfolio efficiency, tests of multifactor models and tests of intertemporal models.
Intended learning outcomes
On successful completion of this subject students should be able to:
- Generate portfolios that are mean-variance efficient;
- Apply no-arbitrage conditions to price contingent claims;
- Identify the factors that are important in determining the links between forward prices and futures prices;
- understand empirical research methods in asset pricing;
- critically evaluate empirical asset pricing research work;
- conduct empirical tests on asset pricing and portfolio models.
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 & analysis
- Critical thinking
- Synthesis of data and other information
- Evaluation of data and other information
- Using computer software
- Accessing data and other information from a range of sources
Last updated: 3 November 2022