ECON3015 Principles of Finance
Module Overview
Specifically the module aims to provide a bridge to the more theoretical articles in finance theory, by offering a simple framework of conceptual knowledge that enables thinking while making financial decisions. As such the module gives an appreciation of the scope of the whole disciplines' subject matter and lays the foundations for more specialized courses that have a narrower focus.
Aims and Objectives
Module Aims
The objective of this module is to enable you to learn how to use financial management thinking for problem-solving in your personal and professional life. Starting from the premise that the goal of management is to increase the value of the firm, the module will acquaint you with the basic concepts of financial analysis and the corporate financial decision-making process.
Learning Outcomes
Learning Outcomes
Having successfully completed this module you will be able to:
- Demonstrate knowledge and understanding of the theory of individual choice among financial assets
- Demonstrate knowledge and understanding of the consumption and investment decisions with capital markets
- Demonstrate knowledge and understanding of choices under uncertainty
- Demonstrate knowledge and understanding of Portfolio construction and formal asset pricing models, such as the CAPM and APT; the issue of efficiency in financial markets, with particular emphasis on the underlying information structure
Syllabus
The module provides a comprehensive introduction to the theory associated with equilibrium asset pricing models.
Learning and Teaching
Teaching and learning methods
Lectures and tutorials.
| Type | Hours |
|---|---|
| Teaching | 28 |
| Independent Study | 122 |
| Total study time | 150 |
Resources & Reading list
Lecture notes in priniciples of finance.
Assessment
Assessment Strategy
The course grade is determined based on a student’s performance in the two-hour final examination and 4 graded homework assignments. 80% of the final grade will be the final exam whereas the 4 homework assignments will carry a weight of 5% each. The class size is prohibitive (around 250 students) to grade each of the assignments individually and return it back in a timely fashion. Therefore, the assignments are group-based and comprise of multiple choice questions and short-essay questions that are similar to the questions in the assignments.
Summative
| Method | Percentage contribution |
|---|---|
| Assignment | 20% |
| Exam (2 hours) | 80% |
Referral
| Method | Percentage contribution |
|---|---|
| Exam | 100% |
Repeat Information
Repeat type: Internal & External
Linked modules
Prerequisites: ECON2003 OR MATH2040 OR MANG2004