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Unit of study_
FINC6001: Finance: Theory to Applications
2024 unit information
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
Managing faculty or University school:
Finance
| Code | FINC6001 |
|---|---|
| Academic unit | Finance |
| Credit points | 6 |
|
Prerequisites:
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FINC5001 |
|---|---|
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Corequisites:
?
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None |
| Prohibitions:
?
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None |
| Assumed knowledge:
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None |
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.
Unit availability
This section lists the session, attendance modes and locations the unit is available in. There is a unit outline for each of the unit availabilities, which gives you information about the unit including assessment details and a schedule of weekly activities.
The outline is published 2 weeks before the first day of teaching. You can look at previous outlines for a guide to the details of a unit.
| Session | MoA ? | Location | Outline ? |
|---|---|---|---|
|
Semester 1 2024
|
Normal day | Camperdown/Darlington, Sydney | |
|
Semester 2 2024
|
Normal day | Camperdown/Darlington, Sydney |
Outline unavailable
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Modes of attendance (MoA)
This refers to the Mode of attendance (MoA) for the unit as it appears when you’re selecting your units in Sydney Student. Find more information about modes of attendance on our website.
Important enrolment information
Additional advice
Master of Commerce / Master of Commerce (Extension) students must complete this unit before the Capstone subject for this specialisation.
