Finance Honours

For requirements for admission, completion and the award of honours in the Bachelor of Advanced Studies, please refer to the Faculty resolutions and the resolutions of the degree.

Unit outlines will be available through Find a unit outline two weeks before the first day of teaching for 1000-level and 5000-level units, or one week before the first day of teaching for all other units.
 

Table A - The University of Sydney Business School

Finance

1000-level units of study

BUSS1020 Quantitative Business Analysis

Credit points: 6 Session: Semester 1,Semester 2 Classes: Refer to the unit of study outline https://www.sydney.edu.au/units 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: Refer to the unit of study outline https://www.sydney.edu.au/units
Note: Refer to the unit of study outline https://www.sydney.edu.au/units
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: Refer to the unit of study outline https://www.sydney.edu.au/units 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: Refer to the unit of study outline https://www.sydney.edu.au/units
Note: Refer to the unit of study outline https://www.sydney.edu.au/units
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.

2000-level units of study

FINC2011 Corporate Finance I

Credit points: 6 Session: Intensive February,Semester 1,Semester 2 Classes: Refer to the unit of study outline https://www.sydney.edu.au/units 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: Refer to the unit of study outline https://www.sydney.edu.au/units
Note: Refer to the unit of study outline https://www.sydney.edu.au/units
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: Intensive July,Semester 1,Semester 2 Classes: Refer to the unit of study outline https://www.sydney.edu.au/units Prerequisites: FINC2011 Assessment: Refer to the unit of study outline https://www.sydney.edu.au/units
Note: Refer to the unit of study outline https://www.sydney.edu.au/units
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: Refer to the unit of study outline https://www.sydney.edu.au/units Prerequisites: BANK2011 or ECOS2004 or FINC2011 Prohibitions: FINC3018 Assessment: Refer to the unit of study outline https://www.sydney.edu.au/units
Note: Refer to the unit of study outline https://www.sydney.edu.au/units
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: Refer to the unit of study outline https://www.sydney.edu.au/units Prerequisites: FINC2012 Assessment: Refer to the unit of study outline https://www.sydney.edu.au/units
Note: Refer to the unit of study outline https://www.sydney.edu.au/units
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: Refer to the unit of study outline https://www.sydney.edu.au/units Prerequisites: FINC2012 Assessment: Refer to the unit of study outline https://www.sydney.edu.au/units
Note: Refer to the unit of study outline https://www.sydney.edu.au/units
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: Refer to the unit of study outline https://www.sydney.edu.au/units Prerequisites: FINC2012 Assumed knowledge: Calculation of free cash flows, trading multiples, discounted cash flow valuation methodology, valuation sensitivities, regression analysis. Assessment: Refer to the unit of study outline https://www.sydney.edu.au/units
Note: Refer to the unit of study outline https://www.sydney.edu.au/units
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: Refer to the unit of study outline https://www.sydney.edu.au/units Prerequisites: FINC2012 Assessment: Refer to the unit of study outline https://www.sydney.edu.au/units
Note: Refer to the unit of study outline https://www.sydney.edu.au/units
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: Refer to the unit of study outline https://www.sydney.edu.au/units Prerequisites: FINC2012 Prohibitions: FINC3005 Assessment: Refer to the unit of study outline https://www.sydney.edu.au/units
Note: Refer to the unit of study outline https://www.sydney.edu.au/units
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: Refer to the unit of study outline https://www.sydney.edu.au/units Prerequisites: FINC2012 Assumed knowledge: Introductory statistics, calculus and microeconomics Assessment: Refer to the unit of study outline https://www.sydney.edu.au/units
Note: Refer to the unit of study outline https://www.sydney.edu.au/units
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: Refer to the unit of study outline https://www.sydney.edu.au/units Prerequisites: FINC2012 Assessment: Refer to the unit of study outline https://www.sydney.edu.au/units
Note: Refer to the unit of study outline https://www.sydney.edu.au/units
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: Refer to the unit of study outline https://www.sydney.edu.au/units Prerequisites: FINC2012 Assumed knowledge: FINC3017 Assessment: Refer to the unit of study outline https://www.sydney.edu.au/units
Note: Refer to the unit of study outline https://www.sydney.edu.au/units
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.
FINC3301 Applied Portfolio Management A

Credit points: 6 Session: Semester 1 Classes: Refer to the unit of study outline https://www.sydney.edu.au/units Prerequisites: FINC2012 Corequisites: FINC3015 Assessment: Refer to the unit of study outline https://www.sydney.edu.au/units
Note: Department permission required for enrolment
Note: Refer to the unit of study outline https://www.sydney.edu.au/units
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: Refer to the unit of study outline https://www.sydney.edu.au/units Prerequisites: FINC3301 Corequisites: FINC3017 Assessment: Refer to the unit of study outline https://www.sydney.edu.au/units
Note: Department permission required for enrolment
Note: Refer to the unit of study outline https://www.sydney.edu.au/units
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: Refer to the unit of study outline https://www.sydney.edu.au/units 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: Refer to the unit of study outline https://www.sydney.edu.au/units
Note: Refer to the unit of study outline https://www.sydney.edu.au/units
This interdisciplinary unit provides students with the opportunity to address complex problems identified by industry, community, and government organisations, and gain valuable experience in working across disciplinary boundaries. In collaboration with a major industry partner and an academic lead, students integrate their academic skills and knowledge by working in teams with students from a range of disciplinary backgrounds. This experience allows students to research, analyse and present solutions to a real-world problem, and to build on their interpersonal and transferable skills by engaging with and learning from industry experts and presenting their ideas and solutions to the industry partner.
FINC3600 Finance in Practice

Credit points: 6 Session: Semester 1,Semester 2 Classes: Refer to the unit of study outline https://www.sydney.edu.au/units Prerequisites: completion of at least 120 credit points including FINC2011 and FINC2012. Corequisites: FINC3017 Assessment: Refer to the unit of study outline https://www.sydney.edu.au/units
Note: Refer to the unit of study outline https://www.sydney.edu.au/units
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.