Financial Economics (ECON40015)

HonoursPoints: 12.5Not available in 2025

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Overview

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This subject examines the economics of financial markets and financial institutions, including a substantial component of financial economic theory and some important current issues in the management of financial institutions and the evolution of financial markets. Topics include the theory of choice under certainty and uncertainty, asset and option pricing models, efficient markets theory, risk management and the theory of the term structure of interest rates.

Intended learning outcomes

On successful completion of this subject students should be able to:

  • Evaluate the main theories used in the study of financial economics;
  • Analyse the usefulness and the limitations of financial economic theory;
  • Critically evaluate contemporary policy debates in the area of financial economics.

Generic skills

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

  • Evaluation of ideas, views and evidence;
  • Synthesis of ideas, views and evidence;
  • Strategic thinking;
  • Critical thinking;
  • Application of theory to economic policy and business decision making;
  • Accessing economic and other information;
  • Summary and interpretation of information;
  • Application of Windows software;
  • Using computer programs;
  • Statistical reasoning;
  • Problem solving skills;
  • Collaborative learning and teamwork;
  • Written and oral communication.

Last updated: 4 March 2025

Eligibility and requirements

Prerequisites

Admission into or selection of one of the following:

  • BH-COM Bachelor of Commerce (Degree with Honours)
  • Economics specialisation (formal) in the BH-ARTS Bachelor of Arts (Degree with Honours)

AND

Code Name Teaching period Credit Points
ECON40001 Advanced Microeconomics
Semester 1 (On Campus - Parkville)
 12.5

Corequisites

None

Non-allowed subjects

Code Name Teaching period Credit Points
ECON90024 Financial Economics
Not available in 2025
 12.5

Recommended background knowledge

Please refer to Prerequisites and Corequisites.

Inherent requirements (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

Last updated: 4 March 2025

Assessment

DescriptionTimingPercentage

Class assignments

  • 2000 words (total)
20%

End-of-semester examination

  • 3 hours
Hurdle requirement: To pass this subject students must pass the end of semester examination.		During the examination period80%

Last updated: 4 March 2025

Dates & times

Not available in 2025

Last updated: 4 March 2025

Further information

  • Texts

    Prescribed texts

    You will be advised of prescribed texts by your lecturer.

  • 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: 4 March 2025