BFF5520 · Advanced foundations of finance

Overview

This course provides a rigorous introduction to the foundations of modern finance and its applications in investments and corporate financial decisions. You will develop a comprehensive understanding of corporate finance and financial markets; risk, risk aversion, risk premium, and asset pricing models; corporate investment and financing decisions; and general principles of securities valuation and equity valuation models.

Offerings

Assessment

The Handbook lists an examination for this unit.

Assessment details may change. Please refer to the assessment information in Moodle closer to the start of the teaching period.

Requisites

Learning outcomes

1. develop an understanding of the environment surrounding financial market investors and corporate managers and its impacts on their decisions
2. discuss the concepts of risk, risk aversion, decisions under uncertainty, and their applications in diversification and modern portfolio theory
3. critique classic and contemporary asset pricing models.
4. evaluate the concept of market efficiency in light of rational expectations and behavioural traits of financial market participants.
5. demonstrate an understanding of corporate managers’ critical decisions on capital budgeting, capital structure, payout, and risk management policies.
6. apply the understanding of investment and corporate financing theories to valuation of securities in general and common stocks in particular.

Workload

Minimum total expected workload to achieve the learning outcomes for this unit is 144 hours per semester typically comprising a mixture of scheduled learning activities and independent study. Independent study may include associated readings, assessment and preparation for scheduled activities. You are expected to complete all pre-class activities prior to your scheduled class, and post-class activities should be completed after your scheduled class. Learning activities may include a combination of teacher directed, peer directed and online engagement activities.

Student experience, not official rules. Nothing here changes what the Handbook says.