Finance 1

This subject has the following teaching availabilities in 2016:

170 hours

A study score of at least 25 in English (any) or equivalent and Mathematical Methods in VCE Units 3 & 4 or equivalent

OR

MAST10012 Introduction to Mathematics

OR

Entry into the Bachelor of Commerce

OR

Entry into the Bachelor of Science

OR

Entry into the Bachelor of Biomedicine

None

Please refer to Prerequisites and Corequisites.

Students who have completed FNCE20001 Business Finance will not be permitted to enrol in this subject.

For the purposes of considering request for Reasonable Adjustments under the Disability Standards for Education (Cwth 2005), and Student Support and Engagement Policy, academic requirements for this subject are articulated in the Subject Overview, Learning Outcomes, Assessment and Generic Skills sections of this entry.

It is University policy to take all reasonable steps to minimise the impact of disability upon academic study, and reasonable adjustments will be made to enhance a student's participation in the University's programs. Students who feel their disability may impact on meeting the requirements of this subject are encouraged to discuss this matter with a Faculty Student Adviser and Student Equity and Disability Support: http://services.unimelb.edu.au/disability

This subject introduces students to finance and provides them with fundamental principles and institutional knowledge to progress in the discipline. Topics include direct financing and security yields, banking and the money market, the bond and equity markets, offshore finance and foreign exchange, the behaviour of financial variables, interest rate risk management and derivative securities. These topics will be used to illustrate fundamental financial concepts such as risk, return, and present value.

• Provide an overview of a `developed' financial system
• Distinguish between the basic types of financial instruments and their main institutional users and issuers
• Appreciate basic concepts in finance, including risk, return, arbitrage, primary claims and contingent claims
• Apply financial mathematical techniques to financial instruments
• Explain the operation of capital and derivatives markets reflect upon the process of financial innovation

Assignments not exceeding 2000 words (20%) and a 2-hour end-of-semester examination (80%). To pass this subject, students must pass the end-of-semester examination.

Financial Institutions and Markets (B Hunt and C Terry), (7th edn), Thomson, Australia, 2015.

This subject potentially can be taken as a breadth subject component for the following courses:

• Bachelor of Arts
• Bachelor of Biomedicine
• Bachelor of Environments
• Bachelor of Music
• Bachelor of Science
• Bachelor of Engineering

You should visit learn more about breadth subjects and read the breadth requirements for your degree, and should discuss your choice with your student adviser, before deciding on your subjects.

• High level of development: interpretation and analysis; critical thinking; synthesis of data and other information; accessing data and other information from a range of sources.

• Moderate level of development: oral communication; written communication; problem solving; statistical reasoning; application of theory to practice; evaluation of data and other information.

• Some level of development: collaborative learning; team work; use of computer software.