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

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
Independent Study	122
Teaching	28
Total study time	150

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