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Economics of Financial Markets (ECON30024)

Undergraduate level 3Points: 12.5On Campus (Parkville)

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Overview

Year of offer2019
Subject levelUndergraduate Level 3
Subject codeECON30024
Campus
Parkville
Availability
Semester 1
FeesSubject EFTSL, Level, Discipline & Census Date

The subject is a combination of principle and practice. It provides an overview of the economic principles governing financial markets; then provides insights into some important empirical and practical issues concerning the operation of financial markets; and concludes with a discussion of some practical issues associated with Australian financial markets.

Intended learning outcomes

  • Explain and analyse the role of capital markets in consumption and investment decision-making under conditions of certainty and uncertainty.
  • Explain how economic theory applies to financial markets.
  • Describe how economic theory can provide testable restrictions on financial data.
  • Analyse the main empirical results that have been established for financial markets.
  • Critically evaluate economic policy issues associated with financial markets.
  • Synthesise different theories and ideas, such as alternative models of asset pricing and portfolio allocation.
  • Apply theories to the real world - how the shape of yield curves can be used to forecast inflation in Australia for example.
  • Evaluate the relevance of competing theories. For instance, the extent to which alternative analyses can be used to predict the market price of different countries.

Generic skills

  • High level of development: written communication; problem solving; application of theory to practice; interpretation and analysis; critical thinking; synthesis of data and other information; evaluation of data and other information.

  • Moderate level of development: oral communication; collaborative learning; team work; statistical reasoning; accessing data and other information from a range of sources; receptiveness to alternative ideas.

  • Some level of development: use of computer software.

Eligibility and requirements

Prerequisites

Both of the following:

Code Name Teaching period Credit Points
ECON20002 Intermediate Microeconomics
Summer Term
Semester 1
12.5
ECON20001 Intermediate Macroeconomics
Semester 2
12.5

AND one of:

Code Name Teaching period Credit Points
ECOM20001 Econometrics 1
Semester 1
Semester 2
12.5
ECON20003 Quantitative Methods 2
Summer Term
Semester 1
Semester 2
12.5

Corequisites

None

Non-allowed subjects

None

Recommended background knowledge

Please refer to Prerequisites and Corequisites.

Core participation requirements

The University of Melbourne is committed to providing students with reasonable adjustments to assessment and participation under the Disability Standards for Education (2005), and the Assessment and Results Policy (MPF1326). Students are expected to meet the core participation requirements for their course. These can be viewed under Entry and Participation Requirements for the course outlines in the Handbook.

Further details on how to seek academic adjustments can be found on the Student Equity and Disability Support website: http://services.unimelb.edu.au/student-equity/home

Assessment

Description

  • A 2-hour end-of-semester examination (60%)
  • Class assignments totalling between 3000 and 4000 words due in weeks 5 and 10 (15%)
  • A 45-minute mid-semester examination in week 7 (15%)
  • Participation in tutorials throughout the semester (weeks 2 to 12) (10%)
  • HURDLE REQUIREMENT: To pass this subject students must pass the end of semester examination.

Dates & times

  • Semester 1
    Principal coordinatorMay Li
    Mode of deliveryOn Campus — Parkville
    Contact hours
    Total time commitment170 hours
    Teaching period 4 March 2019 to 2 June 2019
    Last self-enrol date15 March 2019
    Census date31 March 2019
    Last date to withdraw without fail10 May 2019
    Assessment period ends28 June 2019

Time commitment details

170 Hours

Further information

  • Texts

    Prescribed texts

    You will be advised of prescribed texts by your lecturer.

  • Breadth options
  • Available through the Community Access Program

    About the Community Access Program (CAP)

    This subject is available through the Community Access Program (also called Single Subject Studies) which allows you to enrol in single subjects offered by the University of Melbourne, without the commitment required to complete a whole degree.

    Entry requirements including prerequisites may apply. Please refer to the CAP applications page for further information.

  • Available to Study Abroad and/or Study Exchange Students

    This subject is available to students studying at the University from eligible overseas institutions on exchange and study abroad. Students are required to satisfy any listed requirements, such as pre- and co-requisites, for enrolment in the subject.

Last updated: 21 March 2019