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Unit of study_

FINC6001: Finance: Theory to Applications

Semester 2, 2021 [Normal day] - Remote

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

Unit code FINC6001
Academic unit Finance
Credit points 6
Prohibitions
? 
None
Prerequisites
? 
FINC5001
Corequisites
? 
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+) Type B final exam Final exam
Final exam
50% Formal exam period 2 hours
Outcomes assessed: LO5 LO6 LO7 LO8 LO9
Assignment group assignment Major Assignment
Written report plus video presentation
30% Week 05
Due date: 08 Sep 2021 at 23:59
10 pages (report); 5 minutes (video)
Outcomes assessed: LO1 LO2
In-semester test (Record+) Type B in-semester exam In semester test
In semester test
20% Week 08
Due date: 06 Oct 2021 at 12:00
80 minutes
Outcomes assessed: LO1 LO2 LO3 LO4
group assignment = group assignment ?
Type B final exam = Type B final exam ?
Type B in-semester 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. All topics of the course 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 sydney.edu.au/students/guide-to-grades.

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.

You may only use artificial intelligence and writing assistance tools in assessment tasks if you are permitted to by your unit coordinator, and if you do use them, you must also acknowledge this in your work, either in a footnote or an acknowledgement section.

Studiosity is permitted for postgraduate units unless otherwise indicated by the unit coordinator. The use of this service must be acknowledged in your submission.

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.

WK Topic Learning activity Learning outcomes
Week 01 Financial statement analysis, ratio analysis, and valuation Lecture and tutorial (3 hr) LO1
Week 02 Equity valuation with Excel modelling Lecture and tutorial (3 hr) LO1
Week 03 Interest rate term structure and pricing bonds in practice Lecture and tutorial (3 hr) LO3
Week 04 Advanced firm valuation and applications Lecture and tutorial (3 hr) LO1
Week 05 Social finance and corporate governance Lecture and tutorial (3 hr) LO2
Week 06 Restructuring and securitisation Lecture and tutorial (3 hr) LO1
Week 07 Securities trading Lecture and tutorial (3 hr) LO4
Week 08 Asset management Lecture and tutorial (3 hr) LO8
Week 09 Multi-factor asset pricing models Lecture and tutorial (3 hr) LO5
Week 10 Portfolio performance evaluation Lecture and tutorial (3 hr) LO6
Week 11 Hedge funds Lecture and tutorial (3 hr) LO6
Week 12 Risk and risk management Lecture and tutorial (3 hr) LO7
Week 13 Decision making, bargaining and financial negotiations Lecture and tutorial (3 hr) LO9

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 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.

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
GQ1 GQ2 GQ3 GQ4 GQ5 GQ6 GQ7 GQ8 GQ9

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

In response to feedback provided by students, pre-recorded video lectures will be offered this semester.

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.