Outline

Overview

This unit builds on the fundamental concepts introduced in FINC5001 Foundation in Finance. The central theme in this unit is the allocation problem. Corporate investment, funds management, asset allocation and risk management all require machinery for making an allocation decision - and these decisions are often made by teams or committees. The unit begins with more advanced aspects of corporate finance leading to Excel-based applications. After considering some interesting issues in social finance and corporate governance, students study advanced bond and stock pricing models. With these techniques in hand, securities trading is then considered, and the challenges around selecting active fund managers. The unit then moves to asset management, where large pools of capital are deployed across a range of asset classes, from equity and fixed interest to private markets and commodities. After considering risk pooling and risk management, the unit finishes with a discussion of group decision making and negotiation.

Unit details and rules

Academic unit	Finance
Credit points	6
Prerequisites ?	FINC5001
Corequisites ?	None
Prohibitions ?	None
Assumed knowledge ?	None
Available to study abroad and exchange students	Yes

Teaching staff

Coordinator	Danilo Lopomo Beteto, danilo.lopomobeteto@sydney.edu.au

Type	Description	Weight	Due	Length
Final exam (Record+)	Final exam Final exam	50%	Formal exam period	2 hours
Outcomes assessed:
Assignment	Major Assignment Written report plus video presentation	30%	Week 05 Due date: 21 Mar 2022 at 23:59	10 pages (report); 10 minutes (video)
Outcomes assessed:
In-semester test (Record+)	In semester test In semester test	20%	Week 07 Due date: 06 Apr 2022 at 14:00	80 minutes
Outcomes assessed:
= group assignment ? = Type B final exam ? = Type B in-semester exam ?

Assessment summary

Mid-semester test:

The test will cover material relating to the first half of the semester. The examinable material includes lectures, assigned readings, asssigned questions and pre-requisite knowledge.

Major assignment:

The major assessment is composed of a written report and a video presentation.

Final exam:

The final exam will give you the opportunity to demonstrate your understanding of the material covered in the unit of study. Only the topics covered in the second half of the semester are potentially examinable in the final exam.

Assessment criteria

The University awards common result grades, set out in the Coursework Policy 2014 (Schedule 1).

As a general guide, a high distinction indicates work of an exceptional standard, a distinction a very high standard, a credit a good standard, and a pass an acceptable standard.

Result name	Mark range	Description
High distinction	85 - 100	Awarded when you demonstrate the learning outcomes for the unit at an exceptional standard, as defined by grade descriptors or exemplars outlined by your faculty or school.
Distinction	75 - 84	Awarded when you demonstrate the learning outcomes for the unit at a very high standard, as defined by grade descriptors or exemplars outlined by your faculty or school.
Credit	65 - 74	Awarded when you demonstrate the learning outcomes for the unit at a good standard, as defined by grade descriptors or exemplars outlined by your faculty or school.
Pass	50 - 64	Awarded when you demonstrate the learning outcomes for the unit at an acceptable standard, as defined by grade descriptors or exemplars outlined by your faculty or school.
Fail	0 - 49	When you don’t meet the learning outcomes of the unit to a satisfactory standard.

For more information see guide to grades.

Late submission

In accordance with University policy, these penalties apply when written work is submitted after 11:59pm on the due date:

Deduction of 5% of the maximum mark for each calendar day after the due date.
After ten calendar days late, a mark of zero will be awarded.

This unit has an exception to the standard University policy or supplementary information has been provided by the unit coordinator. This information is displayed below:

Major assignment: In accordance with University policy, these penalties apply when work is submitted after 11:59pm on the due date: - Deduction of 5% of the maximum mark for each calendar day after the due date. - After ten calendar days late, a mark of zero will be awarded.

Academic integrity

The Current Student website provides information on academic integrity and the resources available to all students. The University expects students and staff to act ethically and honestly and will treat all allegations of academic integrity breaches seriously.

We use similarity detection software to detect potential instances of plagiarism or other forms of academic integrity breach. If such matches indicate evidence of plagiarism or other forms of academic integrity breaches, your teacher is required to report your work for further investigation.

Use of generative artificial intelligence (AI) and automated writing tools

You may only use generative AI and automated writing tools in assessment tasks if you are permitted to by your unit coordinator. If you do use these tools, you must acknowledge this in your work, either in a footnote or an acknowledgement section. The assessment instructions or unit outline will give guidance of the types of tools that are permitted and how the tools should be used.

Your final submitted work must be your own, original work. You must acknowledge any use of generative AI tools that have been used in the assessment, and any material that forms part of your submission must be appropriately referenced. For guidance on how to acknowledge the use of AI, please refer to the AI in Education Canvas site.

The unapproved use of these tools or unacknowledged use will be considered a breach of the Academic Integrity Policy and penalties may apply.

Studiosity is permitted unless otherwise indicated by the unit coordinator. The use of this service must be acknowledged in your submission as detailed on the Learning Hub’s Canvas page.

Outside assessment tasks, generative AI tools may be used to support your learning. The AI in Education Canvas site contains a number of productive ways that students are using AI to improve their learning.

Learning support

Simple extensions

If you encounter a problem submitting your work on time, you may be able to apply for an extension of five calendar days through a simple extension.  The application process will be different depending on the type of assessment and extensions cannot be granted for some assessment types like exams.

Special consideration

If exceptional circumstances mean you can’t complete an assessment, you need consideration for a longer period of time, or if you have essential commitments which impact your performance in an assessment, you may be eligible for special consideration or special arrangements.

Special consideration applications will not be affected by a simple extension application.

Using AI responsibly

Co-created with students, AI in Education includes lots of helpful examples of how students use generative AI tools to support their learning. It explains how generative AI works, the different tools available and how to use them responsibly and productively.

Weekly schedule

WK	Topic	Learning activity
Week 01	Financial statement analysis, ratio analysis, and valuation	Lecture and tutorial (3 hr)
Week 02	Equity valuation with Excel modelling	Lecture and tutorial (3 hr)
Week 03	Interest rate term structure and pricing bonds in practice	Lecture and tutorial (3 hr)
Week 04	Advanced firm valuation and applications	Lecture and tutorial (3 hr)
Week 05	Social finance and corporate governance	Lecture and tutorial (3 hr)
Week 06	Restructuring and securitisation	Lecture and tutorial (3 hr)
Week 07	Securities trading	Lecture and tutorial (3 hr)
Week 08	Asset management	Lecture and tutorial (3 hr)
Week 09	Multi-factor asset pricing models	Lecture and tutorial (3 hr)
Week 10	Portfolio performance evaluation	Lecture and tutorial (3 hr)
Week 11	Hedge funds	Lecture and tutorial (3 hr)
Week 12	Risk and risk management	Lecture and tutorial (3 hr)
Week 13	Decision making, bargaining and financial negotiations	Lecture and tutorial (3 hr)

Attendance and class requirements

Although tutorial attendance is not compulsory, successful performance in this unit is typically associated with in-class participation and engagement with the unit’s resources.

Study commitment

Typically, there is a minimum expectation of 1.5-2 hours of student effort per week per credit point for units of study offered over a full semester. For a 6 credit point unit, this equates to roughly 120-150 hours of student effort in total.

Required readings

The required textbook for the unit is FINC6001 Finance: theory to applications 1e. It can be purchased through the link below:

https://www.mheducation.com.au/ebook-finc6001-finance-theory-to-applications-1e-customised-9781307683721-aus

Learning outcomes

Learning outcomes are what students know, understand and are able to do on completion of a unit of study. They are aligned with the University's graduate qualities and are assessed as part of the curriculum.

Outcomes
Graduate qualities

At the completion of this unit, you should be able to:

LO1. Interpret and analyse financial statements for firm valuation and other applications.
LO2. Explain the nexus between finance and challenges arising in areas of social and environmental needs and the corresponding association with corporate governance and ethics.
LO3. Calculate bond prices using the term-structure of interest rates.
LO4. Outline how securities are traded and identify issues associated with information, adverse selection and liquidity.
LO5. Summarise asset pricing models, their assumptions and applications.
LO6. Measure, interpret and classify the performance of active and passive management funds.
LO7. Calculate risk measures, interpret key results and management implications.
LO8. Explain and illustrate portfolio construction in an asset management context.
LO9. Practice the use of strategic models of decision-making in finance.

Graduate qualities

The graduate qualities are the qualities and skills that all University of Sydney graduates must demonstrate on successful completion of an award course. As a future Sydney graduate, the set of qualities have been designed to equip you for the contemporary world.

GQ1	Depth of disciplinary expertise Deep disciplinary expertise is the ability to integrate and rigorously apply knowledge, understanding and skills of a recognised discipline defined by scholarly activity, as well as familiarity with evolving practice of the discipline.
GQ2	Critical thinking and problem solving Critical thinking and problem solving are the questioning of ideas, evidence and assumptions in order to propose and evaluate hypotheses or alternative arguments before formulating a conclusion or a solution to an identified problem.
GQ3	Oral and written communication Effective communication, in both oral and written form, is the clear exchange of meaning in a manner that is appropriate to audience and context.
GQ4	Information and digital literacy Information and digital literacy is the ability to locate, interpret, evaluate, manage, adapt, integrate, create and convey information using appropriate resources, tools and strategies.
GQ5	Inventiveness Generating novel ideas and solutions.
GQ6	Cultural competence Cultural Competence is the ability to actively, ethically, respectfully, and successfully engage across and between cultures. In the Australian context, this includes and celebrates Aboriginal and Torres Strait Islander cultures, knowledge systems, and a mature understanding of contemporary issues.
GQ7	Interdisciplinary effectiveness Interdisciplinary effectiveness is the integration and synthesis of multiple viewpoints and practices, working effectively across disciplinary boundaries.
GQ8	Integrated professional, ethical, and personal identity An integrated professional, ethical and personal identity is understanding the interaction between one’s personal and professional selves in an ethical context.
GQ9	Influence Engaging others in a process, idea or vision.

Outcome map

Learning outcomes	Graduate qualities
Learning outcomes

Responding to student feedback

This section outlines changes made to this unit following staff and student reviews.

In light of the positive feedback received from students, the unit will continue its focus on applications of finance theory that in turn enable the development of the University of Sydney graduate qualities. An innovation in semester 2, 2021, the opportunity to engage in teamwork will remain as it provides a safe environment for students to practice critical thinking, improve oral and written communication skills, and nourish leadership qualities. The teaching team will work towards improving the feedback provided on assessments and, to those that require, offer further guidance to learning activities (including interactive contents, pre-recorded videos and lectures, and the discussion board). An innovation in semester 1, 2022, will be the length of tutorials: sessions will be of 1 1/2 hrs so as to allow a more in-depth engagement with the contents of the unit and in turn bringing applications of finance theory even more to the fore.

Additional information

Disclaimer

The University reserves the right to amend units of study or no longer offer certain units, including where there are low enrolment numbers.

To help you understand common terms that we use at the University, we offer an online glossary.

Current students

Overview

Overview

Unit details and rules

Teaching staff

Assessment

Assessment

Assessment summary

Assessment criteria

Late submission

Academic integrity

Learning support

Learning support

Simple extensions

Special consideration

Using AI responsibly

Weekly schedule

Weekly schedule

Attendance and class requirements

Study commitment

Required readings

Learning outcomes

Learning outcomes

Graduate qualities

Outcome map

Responding to student feedback

Responding to student feedback

Additional information

Additional information

Disclaimer

On this page

Useful links

Media

Student links

About us

Connect

Current students

FINC6001: Finance: Theory to Applications

Semester 1, 2022 [Normal day] - Remote

Overview

Overview

Unit details and rules

Teaching staff

Assessment

Assessment

Assessment summary

Assessment criteria

Late submission

Academic integrity

Learning support

Learning support

Simple extensions

Special consideration

Using AI responsibly

Weekly schedule

Weekly schedule

Attendance and class requirements

Study commitment

Required readings

Learning outcomes

Learning outcomes

Graduate qualities

Outcome map

Responding to student feedback

Responding to student feedback

Additional information

Additional information

Disclaimer

On this page

Useful links

Media

Student links

About us

Connect