Finance Descriptions

Finance

1000-level units of study

BUSS1020 Quantitative Business Analysis

Credit points: 6 Session: Semester 1,Semester 2 Classes: 1 x 2hr lecture and 1 x 2hr tutorial per week Prohibitions: ECMT1010 or MATH1005 or MATH1905 or MATH1015 or STAT1021 or ENVX1001 or ENVX1002 or DATA1001 or MATH1115 Assumed knowledge: Mathematics (equivalent of band 4 in the NSW HSC subject Mathematics or band E3 in Mathematics Extension 1 or 2) OR MATH1111 Assessment: mid-semester exam (25%); weekly homework (15%), assignment (20%), final exam (40%)
Note: Students enrolled in the Bachelor of Commerce, the Bachelor of Commerce and Bachelor of Advanced Studies, and the Bachelor of Commerce and Bachelor of Laws must complete this core unit within the first year of study (full-time students) or within in the first two years of study (part-time students).
All graduates from the BCom need to be able to use quantitative techniques to analyse business problems. This ability is important in all business disciplines since all disciplines deal with increasing amounts of data, and there are increasing expectations of quantitative skills. This unit shows how to interpret data involving uncertainty and variability; how to model and analyse the relationships within business data; and how to make correct inferences from the data (and recognise incorrect inferences). The unit will include instruction in the use of software tools (primarily spreadsheets) to analyse and present quantitative data.
BUSS1040 Economics for Business Decision Making

Credit points: 6 Session: Semester 1,Semester 2 Classes: 1x 2hr lecture and 1x 1hr tutorial per week Prohibitions: ECON1001 OR ECON1040 Assumed knowledge: Mathematics (equivalent of band 4 in the NSW HSC subject Mathematics or band E3 in Mathematics Extension 1 or 2) OR MATH1111 Assessment: written assignment (15%); online quizzes (10%); mid-semester test (20%); final exam (55%)
Economics underlies all business decisions, from pricing to product development, to negotiations, to understanding the general economic environment. This unit provides an introduction to economic analysis with a particular focus on concepts and applications relevant to business. This unit addresses how individual consumers and firms make decisions and how they interact in markets. It also introduces a framework for understanding and analysing the broader economic and public policy environment in which a business competes. This unit provides a rigorous platform for further study and a major in economics as well as providing valuable tools of analysis that complement a student's general business training, regardless of their area of specialisation.
DATA1001 Foundations of Data Science

Credit points: 6 Session: Semester 1,Semester 2 Classes: 3x1-hr lectures; 1x2-hr lab/wk Prohibitions: DATA1901 or MATH1005 or MATH1905 or MATH1015 or MATH1115 or ENVX1001 or ENVX1002 or ECMT1010 or BUSS1020 or STAT1021 Assessment: RQuizzes (10%); 3 x projects (30%); final exam (60%)
DATA1001 is a foundational unit in the Data Science major. The unit focuses on developing critical and statistical thinking skills for all students. Does mobile phone usage increase the incidence of brain tumours? What is the public's attitude to shark baiting following a fatal attack? Statistics is the science of decision making, essential in every industry and undergirds all research which relies on data. Students will use problems and data from the physical, health, life and social sciences to develop adaptive problem solving skills in a team setting. Taught interactively with embedded technology, DATA1001 develops critical thinking and skills to problem-solve with data. It is the prerequisite for DATA2002.
ECMT1010 Introduction to Economic Statistics

Credit points: 6 Session: Semester 1,Semester 2 Classes: 1x2hr lecture/week, 1x2hr workshop/week Prohibitions: ECMT1011 or ECMT1012 or ECMT1013 or MATH1015 or MATH1005 or MATH1905 or STAT1021 or ECOF1010 or BUSS1020 or ENVX1001 or DATA1001 Assumed knowledge: Students enrolled in this unit have an assumed knowledge equal to or exceeding 70 or higher in HSC Mathematics (or equivalent), or 35 or higher in HSC Mathematics Extension 1 (or equivalent), or 35 or higher in HSC Mathematics Extension 2 (or equivalent). Assessment: homework (15%), quizzes (30%), assignment (15%) and 1x2hr Final exam (40%)
This unit emphasises understanding the use of computing technology for data description and statistical inference. Both classical and modern statistical techniques such as bootstrapping will be introduced. Students will develop an appreciation for both the usefulness and limitations of modern and classical theories in statistical inference. Computer software (e.g., Excel, StatKey) will be used for analysing real datasets.
ECON1001 Introductory Microeconomics

Credit points: 6 Session: Intensive January,Semester 1,Semester 2 Classes: 1x2hr lecture/week, 1x1hr tutorial/week Prohibitions: BUSS1040 or ECON1040 Assumed knowledge: Students enrolled in this unit have an assumed knowledge equal to or exceeding 70 or higher in HSC Mathematics (or equivalent), or 35 or higher in HSC Mathematics Extension 1 (or equivalent), or 35 or higher in HSC Mathematics Extension 2 (or equivalent). Assessment: online quizzes (10%), 1xMid-semester test (30%), 1xEssay (10%) and 1x2hr Final exam (50%)
Introductory Microeconomics addresses the economic decisions of individual firms and households and how these interact in markets. Economic issues are pervasive in contemporary Australian society. Introductory Microeconomics introduces students to the language and analytical framework adopted in Economics for the examination of social phenomena and public policy issues. Whatever one's career intentions, coming to grips with economic ideas is essential for understanding society, business and government. Students are given a comprehensive introduction to these ideas and are prepared for the advanced study of microeconomics in subsequent years. Prior knowledge of mathematics is assumed.
ECON1002 Introductory Macroeconomics

Credit points: 6 Session: Intensive January,Intensive June,Semester 1,Semester 2 Classes: 1x2hr lecture/week, 1x1hr tutorial/week Assumed knowledge: Students enrolled in this unit have an assumed knowledge equal to or exceeding 70 or higher in HSC Mathematics (or equivalent), or 35 or higher in HSC Mathematics Extension 1 (or equivalent), or 35 or higher in HSC Mathematics Extension 2 (or equivalent). Assessment: 1500wd written assessments (25%), 1x1hr mid-semester exam (25%), 1x2hr final exam (50%)
Note: Department permission required for enrolmentin the following sessions:Intensive June
Introductory Macroeconomics addresses the analysis of the level of employment and economic activity in the economy as a whole. Introductory Macroeconomics examines the main factors that determine the overall levels of production and employment in the economy, including the influence of government policy and international trade. This analysis enables an exploration of money, interest rates and financial markets, and a deeper examination of inflation, unemployment and economic policy. It is assumed that students undertaking this unit will have a prior knowledge of mathematics.
ENVX1002 Introduction to Statistical Methods

Credit points: 6 Session: Semester 1 Classes: 3 hours per week of lectures; 2 hours per week of computer tutorials Prohibitions: ENVX1001 or MATH1005 or MATH1905 or MATH1015 or MATH1115 or DATA1001 or DATA1901 or BUSS1020 or STAT1021 or ECMT1010 Assessment: Assignments, quizzes, presentation, exam
Note: Available as a degree core unit only in the Agriculture, Animal and Veterinary Bioscience, and Food and Agribusiness, and Taronga Wildlife Conservation streams
This is an introductory data science unit for students in the agricultural, life and environmental sciences. It provides the foundation for statistics and data science skills that are needed for a career in science and for further study in applied statistics and data science. The unit focuses on developing critical and statistical thinking skills for all students. It has 4 modules; exploring data, modelling data, sampling data and making decisions with data. Students will use problems and data from the physical, health, life and social sciences to develop adaptive problem solving skills in a team setting. Taught interactively with embedded technology, ENVX1002 develops critical thinking and skills to problem-solve with data.
MATH1005 Statistical Thinking with Data

Credit points: 3 Session: Intensive January,Semester 1,Semester 2 Classes: 2x1-hr lectures; 1x1-hr lab/wk Prohibitions: MATH1015 or MATH1905 or STAT1021 or ECMT1010 or ENVX1001 or ENVX1002 or BUSS1020 or DATA1001 or DATA1901 Assumed knowledge: HSC Mathematics. Students who have not completed HSC Mathematics (or equivalent) are strongly advised to take the Mathematics Bridging Course (offered in February). Assessment: quizzes (10%), project 1 (10%), project 2 (15%), final exam (65%)
In a data-rich world, global citizens need to problem solve with data, and evidence based decision-making is essential is every field of research and work.
This unit equips you with the foundational statistical thinking to become a critical consumer of data. You will learn to think analytically about data and to evaluate the validity and accuracy of any conclusions drawn. Focusing on statistical literacy, the unit covers foundational statistical concepts, including the design of experiments, exploratory data analysis, sampling and tests of significance.
MATH1015 Biostatistics

This unit of study is not available in 2020

Credit points: 3 Session: Semester 1 Classes: Two 1 hour lectures and one 1 hour tutorial per week. Prohibitions: MATH1005 or MATH1905 or STAT1021 or STAT1022 or ECMT1010 or BIOM1003 or ENVX1001 or ENVX1002 or BUSS1020 Assumed knowledge: HSC Mathematics. Students who have not completed HSC Mathematics (or equivalent) are strongly advised to take the Mathematics Bridging Course (offered in February). Assessment: One 1.5 hour examination, assignments and quizzes (100%)
MATH1015 is designed to provide a thorough preparation in statistics for students in the Biological and Medical Sciences. It offers a comprehensive introduction to data analysis, probability and sampling, inference including t-tests, confidence intervals and chi-squared goodness of fit tests.
MATH1115 Interrogating Data

Credit points: 3 Session: Intensive January,Semester 1,Semester 2 Classes: 2-hr lab/wk Prerequisites: MATH1005 or MATH1015 Prohibitions: STAT1021 or ENVX1001 or ENVX1002 or BUSS1020 or ECMT1010 or DATA1001 or DATA1901 Assessment: LQuizzes (5%); projects (30%); final exam (65%)
In a data-rich world, global citizens need to problem solve with data, and evidence based decision-making is essential is every field of research and work. This unit equips you with foundational statistical thinking to interrogate data. Focusing on statistical literacy, the unit covers foundational statistical concepts such as visualising data, the linear regression model, and testing significance using the t and chi-square tests. Based on a flipped learning approach, you will experience most of your learning in weekly collaborative 2 hour labs, supplemented by readings and lectures. Working in teams, you will explore three real data stories across different domains, with associated literature. The combination of MATH1005/1015 and MATH1115 is equivalent to DATA1001, allowing you to pathway to the Data Science, Statistics, or Quantitative Life Sciences majors.
MATH1905 Statistical Thinking with Data (Advanced)

Credit points: 3 Session: Semester 2 Classes: 2x1-hr lectures; 1x1-hr tutorial/wk Prohibitions: MATH1005 or MATH1015 or STAT1021 or ECMT1010 or ENVX1001 or ENVX1002 or BUSS1020 or DATA1001 or DATA1901 Assumed knowledge: (HSC Mathematics Extension 2) OR (90 or above in HSC Mathematics Extension 1) or equivalent Assessment: 2 x quizzes (20%); 2 x assignments (10%); final exam (70%)
Note: Department permission required for enrolment
This unit is designed to provide a thorough preparation for further study in mathematics and statistics. It is a core unit of study providing three of the twelve credit points required by the Faculty of Science as well as a Junior level requirement in the Faculty of Engineering. This Advanced level unit of study parallels the normal unit MATH1005 but goes more deeply into the subject matter and requires more mathematical sophistication.

2000-level units of study

FINC2011 Corporate Finance I

Credit points: 6 Session: Intensive January,Intensive July,Semester 1,Semester 2 Classes: 1 x 2hr lecture and 1 x 1hr tutorial per week Prerequisites: (BUSS1020 or ECMT1010 or ENVX1001 or ENVX1002 or DATA1001 or ((MATH1005 or MATH1015) and MATH1115) or 6 credit points in MATH units including MATH1905) and (BUSS1040 or ECON1001 or ECON1002) Assumed knowledge: BUSS1030 Assessment: mid-semester test (20%), major assignment (30%), final exam (50%)
Note: Department permission required for enrolmentin the following sessions:Intensive July
This unit provides an introduction to basic concepts in corporate finance and their application to (1) valuation of risky assets including stocks, bonds and entire corporations, (2) pricing of equity securities, and (3) corporate financial policy decisions including dividend, capital structure and risk management policies. Emphasis is placed on the application of the material studied and current practices in each of the topic areas.
FINC2012 Corporate Finance II

Credit points: 6 Session: Semester 1,Semester 2 Classes: 1x 2hr lecture and 1x 1hr tutorial per week Prerequisites: FINC2011 Assessment: mid-term test (25%), assignments (25%), final exam (50%)
This unit builds on FINC2011 Corporate Finance I, by extending basic concepts in corporate financing, investing and risk management. The unit presents current theories of corporate financing and their practical application in corporate investment and capital budgeting. The unit also examines securities and securities markets with an emphasis on pricing, investment characteristics and their use by corporations to manage risk. The securities examined include: bonds and related fixed income products; futures and options. The goal of the unit is to broaden students' knowledge of corporate finance in preparation for further study in finance in 300 level courses.

3000-level units of study

BANK3011 Bank Financial Management

Credit points: 6 Session: Semester 1,Semester 2 Classes: a two-hour lecture and a one-hour tutorial each week during the semester. Prerequisites: BANK2011 or ECOS2004 or FINC2011 Prohibitions: FINC3018 Assessment: mid-semester test (25%); individual assignment (30%); final exam (45%)
The objective of the unit is to expose students to the management of financial risks in banks. The unit examines how financial markets impact on the management of commercial banks and the risks they are exposed to, together with the techniques and approaches used in the measurement and management of these risks. Topics covered include the theory and practice of banking from a financial management perspective, interest rate and foreign exchange market risks, credit risk, liquidity risk, financial management, interest rate and credit derivatives, investment and loan management strategies and portfolio modelling, liability and deposit management, performance analysis, and industry developments.
FINC3011 International Financial Management

Credit points: 6 Session: Semester 1 Classes: 1x 2hr lecture and 1x 1hr tutorial per week Prerequisites: FINC2012 Assessment: 2x semester tests each (20%), tutorial participation (10%) and a final exam (50%)
Markets are increasingly globalised. There are very few businesses or industries that are not required to deal with issues such as foreign currency, foreign competition and direct investment. This unit is designed to allow students to extend their understanding of basic principles in finance to an international environment. Globalisation of markets introduces risks but also opens up profitable opportunities. Topics covered include: foreign currency valuation and markets; international parity conditions; measuring and managing foreign exposure; international portfolio management; capital budgeting and foreign direct investment; international tax management and international financing strategy.
FINC3012 Derivative Securities

Credit points: 6 Session: Semester 2 Classes: 1x 2hr lecture and 1x 1hr tutorial per week Prerequisites: FINC2012 Assessment: group assignment (20%), mid-semester test (30%), final exam (50%)
Note: Knowledge of calculus, regression, probability theory and random distributions are helpful for this subject
Options, futures and swaps are derivatives of underlying securities such as commodities, equities and bonds. These types of securities are increasingly used to manage risk exposure and as a relatively low-cost-way of taking a position in a security or portfolio. They are also being used as part of senior management compensation as a way of attempting to align the interests of shareholders with that of management. This unit is designed to provide an introduction to this important area of finance without requiring too high a level of mathematical sophistication. However, strong quantitative skills are an advantage in this subject.
FINC3013 Mergers and Acquisitions

Credit points: 6 Session: Semester 2 Classes: 1x 2hr lecture and 1x 1hr tutorial per week; Additional workshops as required. Prerequisites: FINC2012 Assumed knowledge: Calculation of free cash flows, trading multiples, discounted cash flow valuation methodology, valuation sensitivities, regression analysis. Assessment: mid-semester test (20%), assignment (30%), final exam (50%)
Mergers and acquisitions are a fundamental component of the corporate landscape. Students enrolling in this unit will study the economic and strategic drivers of corporate restructuring activity and their use in the design and analysis of restructuring transactions; evaluate the outcomes from restructuring transactions, both the theory-based explanations and the empirical tests of the theories; learn to identify and value synergies in a restructuring transaction using several valuation methods; develop a detailed understanding of the design and economic impacts of deal structures used to effect corporate restructuring transactions; and analyse the process of merger arbitrage and its contribution to the outcome of restructuring transactions. This unit will, where possible, integrate learning outcomes in an academic and applied context, and develop an appreciation of the regulatory environment for restructuring transactions and the impact of these regulations on the process and outcomes of restructuring transactions.
FINC3014 Trading and Dealing in Security Markets

Credit points: 6 Session: Semester 2 Classes: 1x 2hr lecture and 1x 1hr tutorial per week Prerequisites: FINC2012 Assessment: tutorial participation (10%), mid-semester test (20%), trading assignment (20%), final exam (50%)
This unit is concerned with the processes which turn orders into trades in securities markets, and the forces which mould and affect both order flow and order execution. The unit provides an introduction to some fundamental ideas about market design and structure. At the end of the unit, students should be able to understand (1) how the international markets for foreign exchange, swaps, bonds and equities are organised, (2) how trading is conducted in these markets and how these transactions are cleared, (3) how the markets are regulated, if they are supervised and what risks different counterparties face in these markets. The unit aims to equip students to independently analyse international investment and financing alternatives and to estimate expected returns and costs taking into account liquidity risk, price volatility and credit risk.
FINC3015 Financial Valuation: Case Study Approach

Credit points: 6 Session: Semester 1 Classes: 1x2hr lecture per week; 1x1hr workshop session per week Prerequisites: FINC2012 Prohibitions: FINC3005 Assessment: case study 1 (30%); case study 2 (30%); group assignment (40%)
This unit applies all aspects of finance theory to the general problem of valuing companies and other financial assets. This requires a synthesis of the concepts of present value, cost of capital, security valuation, asset pricing models, optimal capital structures and some related accounting concepts. The subject aims to reach a level of practical application that allows students to understand both the theoretical frameworks and institutional conventions of real-world corporate valuations.
FINC3017 Investments and Portfolio Management

Credit points: 6 Session: Semester 1,Semester 2 Classes: 1x 2h lecture and 1x 1hr tutorial per week Prerequisites: FINC2012 Assumed knowledge: Introductory statistics, calculus and microeconomics Assessment: report 1 (25%); report 2 (25%); final exam (50%)
This unit is designed to provide a comprehensive analytical approach to the modern theory of investments. Topics covered include: mean-variance analysis; Markowitz type portfolio analysis; portfolio construction; asset pricing theories; market efficiency and anomalies; hedge funds and investment fund performance evaluation. Although analytical aspects of investments theory are stressed, there is also an equal amount of coverage on the practical aspects of portfolio management. Current research on investments is emphasised in the course.
FINC3019 Fixed Income Securities

Credit points: 6 Session: Semester 2 Classes: 1x 2 hr lecture and 1x 1hr tutorial per week Prerequisites: FINC2012 Assessment: mid-semester test (25%), group assignment (25%), final exam (50%)
This unit is designed to provide a thorough grounding in fixed income securities, bond portfolio analysis and the use of closely related financial instruments in risk management. The unit begins with the basic analytical framework necessary to understand the pricing of bonds and their investment characteristics (introducing fundamental concepts such as duration, yield and term structure). This provides the building blocks for analysis of more complicated corporate and derivative securities. Sectors of the debt market, including treasury securities, corporate bonds, mortgage-backed securities, and convertible bonds are analysed. The use of derivatives and a selection of special topics in fixed income are also discussed.
FINC3020 Financial Risk Management

Credit points: 6 Session: Semester 2 Classes: 1x 2hr lecture and 1x 1hr tutorial per week Prerequisites: FINC2012 Assumed knowledge: FINC3017 Assessment: Lab exercises (20%), group project (20%), mid-semester exam (20%), final exam (40%)
Risk is an integral part of financial decisions. Financial risk management is increasingly important and financial analysts must be prepared to assess the level of risk in the marketplace. This course explores the basic concepts of modelling, measuring and managing financial risks within the regulatory framework. Topics covered include market risk (value-at-risk and expected loss), credit risk (single name, portfolio, ratings and market-based models, and credit derivatives), liquidity risk and operational risk. The course relies heavily on practically based computer laboratory exercises with emphasis on simulations, real-life examples and case studies.
FINC3023 Behavioural Finance

Credit points: 6 Session: Semester 1 Classes: 1x 2hr lecture and 1x 1hr tutorial per week Prerequisites: FINC2012 Assessment: mid-semester exam (30%), group assignment (20%), final exam (50%)
Behavioural Finance explores financial market 'anomalies' - factors that are not traditionally explained by efficient markets theory - such as why stock prices exhibit momentum and reversals, why large swings in stock prices occur over short time periods, and how individual investors differ from institutional investors.
FINC3301 Applied Portfolio Management A

Credit points: 6 Session: Semester 1 Classes: 2x 1.5hr workshops per week Prerequisites: FINC2012 Corequisites: FINC3015 Assessment: investment update report (10%); functional team analysis (10%); stock pitch and sector outlook report (40%); investment update presentation (10%); individual stock pitch ideas and discussion (30%)
Note: Department permission required for enrolment
Applied Portfolio Management is a two-semester program that enables undergraduate students to apply their academic knowledge and acquire practical skills by managing a portfolio of Australian equity securities using real money in real time. Students gain exposure to the world of asset management by assuming the role of analysts and are responsible for construction, monitoring and management of the University of Sydney Student Managed Fund. Analysts are divided into industry teams and begin with an evaluation of the existing investments. Following thorough economic, industry and company research and analysis, each team of analysts is required to identify opportunities in their industry and present an investment thesis to highlight undervalued stocks that may offer superior investment performance. Students make presentations on potential investments to academics, industry professionals and other analysts, who perform the role of an investment committee. Students report to the investment committee and advisory board and produce an annual report of the fund's activities. There is an emphasis on team-based learning and interaction with industry professionals who act as mentors to students.
FINC3302 Applied Portfolio Management B

Credit points: 6 Session: Semester 2 Classes: 2x 1.5hr workshops per week Prerequisites: FINC3301 Corequisites: FINC3017 Assessment: functional team project report (30%), annual report (25%), investment pitch and discussion (30%), investment update presentation (10%), stock selection performance (5%)
Note: Department permission required for enrolment
Applied Portfolio Management is a two-semester program that enables undergraduate students to apply their academic knowledge and acquire practical skills by managing a portfolio of Australian equity securities using real money in real time. Students gain exposure to the world of asset management by assuming the role of analysts and are responsible for construction, monitoring and management of the University of Sydney Student Managed Fund. Analysts are divided into industry teams and begin with an evaluation of the existing investments. Following thorough economic, industry and company research and analysis, each team of analysts is required to identify opportunities in their industry and present an investment thesis to highlight undervalued stocks that may offer superior investment performance. Students make presentations on potential investments to academics, industry professionals and other analysts, who perform the role of an investment committee. Students report to the investment committee and advisory board and produce an annual report of fund activities. There is an emphasis on team-based learning and interaction with industry professionals who act as mentors to students.
FINC3400 Industry and Community Project

Credit points: 6 Session: Intensive February,Intensive July,Semester 1,Semester 2 Classes: 3 hrs weekly Prerequisites: 72 credit points Prohibitions: BUSS3110 or ACCT3400 or BANK3400 or CLAW3400 or IBUS3400 or INFS3400 or MKTG3400 or QBUS3400 or WORK3400 or WORK3401 Assumed knowledge: (BUSS1020 or DATA1001 or ECMT1010 or ENVX1002 or ((MATH1005 or MATH1015) and MATH1115) or 6 credit points of MATH coded 1000-level units including MATH1905) and (BUSS1040 or ECON1001 or ECON1002) and FINC2011 Assessment: group plan (20%); individual statement (20%); group report (50%); group presentation (10%)
This unit allows students to undertake an interdisciplinary project, working with one of the University's industry and community partners. This experience allows students to address a complex problem set out by the partner by integrating their academic skills and knowledge from more than one discipline. Students also have the opportunity to build their interpersonal and transferable skills required in their professional life.
FINC3600 Finance in Practice

Credit points: 6 Session: Semester 1,Semester 2 Classes: 3-hour workshop-style classes (combined lecture/problem solving) Prerequisites: completion of at least 120 credit points including FINC2011 and FINC2012. Corequisites: FINC3017 Assessment: individual assignment (30%); group assignment (30%); final exam (40%)
Note: This unit should only be undertaken by students in their final semester of the Finance major. This unit of study must be completed at the University of Sydney Business School.
While finance is strongly influenced by theory, it is ultimately an applied field. Through a comprehensive analysis of practitioner-focused topics, this unit develops skills in implementing and assessing financial analyses. This unit challenges students to incorporate market practicalities and to communicate their recommendations to diverse audiences. The unit uses a problem solving/case-based approach to learning and serves as the Finance major capstone.