FINC331-20S2 (C) Semester Two 2020

Financial Economics

15 points

Details:
Start Date: Monday, 13 July 2020
End Date: Sunday, 8 November 2020
Withdrawal Dates
Last Day to withdraw from this course:
  • Without financial penalty (full fee refund): Friday, 24 July 2020
  • Without academic penalty (including no fee refund): Friday, 25 September 2020

Description

The economics of finance, with applications to asset valuation, corporate finance, and portfolio management.

This course covers the economics of financial decisions and markets. How do individuals and firms make investment decisions? How are future cash flow streams (such as those provided by financial securities) priced? Requirements include familiarity with intermediate microeconomics, multivariate calculus, algebra (including matrix algebra) and probability theory.

Learning Outcomes

  • LEARNING OUTCOMES:  At the end of this course, a successful student will be able to:
  • Understand what the efficient market hypothesis does and doesn’t say, and its implications  for asset price behaviour;
  • Understand modern portfolio theory and its implications for investment planning;
  • Understand the no-arbitrage principle and its implications for asset pricing;
  • Be able to relate financial economics theory to actual financial issues and events;
  • Be adequately prepared for postgraduate study in finance and economics.

Prerequisites

(1) ECON207; and (2) FINC201; and (3) MATH102 or MATH199 RP: FINC205 or MATH103

Restrictions

Equivalent Courses

Recommended Preparation

Course Coordinator

Glenn Boyle

Assessment

Assessment Due Date Percentage  Description
Presentation of assignments 10% Based on solutions to tutorial questions.
Written assignment 10% Four assignments worth 2.5% each to be handed in at the beginning of the tutorial.
Test 21 Aug 2020 35% In-class test covering weeks 2 to 6.
Test 16 Oct 2020 45% In-class test covering Week 1, and weeks 7 to 12.

Indicative Fees

Domestic fee $822.00

International fee $3,688.00

* All fees are inclusive of NZ GST or any equivalent overseas tax, and do not include any programme level discount or additional course-related expenses.

For further information see Department of Economics and Finance .

All FINC331 Occurrences

  • FINC331-20S2 (C) Semester Two 2020
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