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	No

Teaching staff

Coordinator	Buhui Qiu, buhui.qiu@sydney.edu.au
Lecturer(s)	Doowon Lee, doowon.lee@sydney.edu.au

Assessment

The census date for this unit availability is 1 September 2025

Details
Criteria

Type	Description	Weight	Due	Length	Use of AI
Written exam ?	Final exam Closed book	50%	Formal exam period	2 hours	AI prohibited
Outcomes assessed:
Written work	Written group assignment report In-depth analysis of issues related to finance.	30%	Week 10	3000 words	AI allowed
Outcomes assessed:
Presentation	Video presentation Video presentation of your group assignment report.	20%	Week 11	7 minutes video recording	AI allowed
Outcomes assessed:
= group assignment ?

Assessment summary

Group formation:

Individual students must form a group of 3 to 5 people within the same tutorial class by Week 3. The group will need to select a group number within the Canvas site and register their names within the group. The group number is linked to the tutorial class number. If your tutorial is #6 then your groups can be any group number from 60 to 69. The number selection is first in first served basis.

Written report:

The written report (group assignment) involves a critical analysis and discussion of a designated publicly listed company, drawing on knowledge acquired from the unit. Students are permitted to use Cogniti, the University’s approved generative AI tool for students. The group assignment report will be due to Week 10.

Video presentation:

Each group will prepare a 7 minutes vedio presentation on Canvas to present their findings from the group assignment report by the end of Week 11. All group members should be present during the presentation.

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 from week 1 to week 12. An equation sheet will be provided to students.

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.

Use of generative artificial intelligence (AI)

You can use generative AI tools for open assessments. Restrictions on AI use apply to secure, supervised assessments used to confirm if students have met specific learning outcomes.

Refer to the assessment table above to see if AI is allowed, for assessments in this unit and check Canvas for full instructions on assessment tasks and AI use.

If you use AI, you must always acknowledge it. Misusing AI may lead to a breach of the Academic Integrity Policy.

Visit the Current Students website for more information on AI in assessments, including details on how to acknowledge its use.

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 University expects students to act ethically and honestly and will treat all allegations of academic integrity breaches seriously.

Our website provides information on academic integrity and the resources available to all students. This includes advice on how to avoid common breaches of academic integrity. Ensure that you have completed the Academic Honesty Education Module (AHEM) which is mandatory for all commencing coursework students

Penalties for serious breaches can significantly impact your studies and your career after graduation. It is important that you speak with your unit coordinator if you need help with completing assessments.

Visit the Current Students website for more information on AI in assessments, including details on how to acknowledge its use.

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.

Support for students

The Support for Students Policy reflects the University’s commitment to supporting students in their academic journey and making the University safe for students. It is important that you read and understand this policy so that you are familiar with the range of support services available to you and understand how to engage with them.

The University uses email as its primary source of communication with students who need support under the Support for Students Policy. Make sure you check your University email regularly and respond to any communications received from the University.

Learning resources and detailed information about weekly assessment and learning activities can be accessed via Canvas. It is essential that you visit your unit of study Canvas site to ensure you are up to date with all of your tasks.

If you are having difficulties completing your studies, or are feeling unsure about your progress, we are here to help. You can access the support services offered by the University at any time:

Support and Services (including health and wellbeing services, financial support and learning support)
Course planning and administration
Meet with an Academic Adviser

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	Risk and risk management	Lecture and tutorial (3 hr)
Week 12	Hedge funds	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 active 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

Two textbooks are required in this unit.

"Principles of Corporate Finance, 14th Edition, by Richard Brealey, Stewart Myers, Franklin Allen and Alex Edmans" - This is the textbook for FINC5001.

"ISE Investments, 13th Edition, by Zvi Bodie, Alex Kane, Alan J. Marcus" This is the second textbook required.

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.

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

Use of generative artificial intelligence (AI)

Late submission

Academic integrity

Learning support

Learning support

Simple extensions

Special consideration

Using AI responsibly

Support for students

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

FINC6001: Finance: Theory to Applications

Semester 2, 2025 [Normal day] - Camperdown/Darlington, Sydney

Overview

Overview

Unit details and rules

Teaching staff

Assessment

Assessment

Assessment summary

Assessment criteria

Use of generative artificial intelligence (AI)

Late submission

Academic integrity

Learning support

Learning support

Simple extensions

Special consideration

Using AI responsibly

Support for students

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