|Year of offer||2017|
|Subject level||Undergraduate Level 2|
|Fees||Subject EFTSL, Level, Discipline & Census Date|
Topics include basic institutional knowledge of the Australian finance sector and an introduction to the theory of pricing of risky assets, focusing on the Capital Asset Pricing Model; fundamentals of capital budgeting, including methods of allowing for inflation, and the treatment of risk; instruments of corporate funding; the theory and practice of capital structure and dividend policy decisions; and an introduction to complex financial instruments such as options and futures.
Intended learning outcomes
- Solve basic problems in financial mathematics.
- Discuss the basic theories underlying the pricing of risky assets;
- Comprehend the concepts of portfolio formation;
- Explain the fundamentals of capital budgeting, including the use of alternative criteria, allowing for inflation and the treatment of risk;
- Analyse the issues facing managers in decisions of capital structure and dividend policy;
- Use the features of financial derivatives to achieve particular financial outcomes.
High level of development: problem solving; interpretation and analysis; critical thinking.
Moderate level of development: oral communication; written communication; collaborative learning; statistical reasoning; application of theory to practice; synthesis of data and other information; evaluation of data and other information; accessing data and other information from a range of sources.
Some level of development: team work; use of computer software.