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Unit of study_

FINC6001: Finance: Theory to Applications

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.


Academic unit Finance
Unit code FINC6001
Unit name Finance: Theory to Applications
Session, year
Semester 1, 2023
Attendance mode Normal day
Location Remote
Credit points 6

Enrolment rules

Available to study abroad and exchange students


Teaching staff and contact details

Coordinator Doowon Lee,
Type Description Weight Due Length
Supervised exam
Final exam
Closed book
50% Formal exam period 2 hours
Outcomes assessed: LO1 LO2 LO3 LO4 LO5 LO6 LO7 LO8 LO9
Assignment group assignment Written report
In-depth analysis of issues related to corporate finance.
30% Week 08
Due date: 21 Apr 2023 at 10:00
2,500 words
Outcomes assessed: LO1 LO3 LO2
Presentation group assignment Video presentation
Video presentation covering issues related to portfolio management.
20% Week 13
Due date: 28 May 2023 at 23:59
8 minutes
Outcomes assessed: LO5 LO8
group assignment = group assignment ?

Written report:

The written report (group work) involves a critical analysis and discussion of issues associated with corporate finance.

Video presentation:

The video presentation (group work) deals with questions associated with portfolio management studied in the 2nd half of the unit.

Final exam:

The final exam gives to students the opportunity to demonstrate understanding of the contents covered in the unit of study. All modules are examinable.

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


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. 


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.


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.


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. 


0 - 49

When you don’t meet the learning outcomes of the unit to a satisfactory standard.

For more information see

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.

Special consideration

If you experience short-term circumstances beyond your control, such as illness, injury or misadventure or if you have essential commitments which impact your preparation or performance in an assessment, you may be eligible for special consideration or special arrangements.

Academic integrity

The Current Student website provides information on academic honesty, academic dishonesty, 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 dishonesty or plagiarism seriously.

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

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

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:


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
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.


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