Financial Economics

6 unitsIn PersonNot offered

Research School of Economics · ANU College of Business and Economics

About this course

This course examines the economic principles that determine the allocation of resources through time in market economies. It uses supply and demand relationships to value capital assets (or projects more generally). There is a detailed treatment of the effects of time, risk and misspecification on capital asset prices. The impact of liquidity on our understanding of financial economics will also be discussed.

Learning outcomes

1define the classical finance model that underpins modern finance;
2explain how securities are priced and affected by the institutional arrangements in securities markets;
3demonstrate an understanding of the role played by time, uncertainty, information and inflation in evaluating financial instruments;
4analyse the role played by arbitrage in finance markets and its impact on security prices;
5demonstrate an understanding of how security prices are determined in the Capital Asset Pricing Model, and the role played by the assumptions in the model;
6identify the assumptions behind the the Hansen-Jagannathan bounds and the mean-variance frontier as a basis of understanding the factors that determine the portfolio choice;
7demonstrate an understanding of the role of asymmetric information in various financial markets;
8demonstrate an understanding of how market frictions can impact financial decisions and asset prices.

Assessment

Weights and hurdle requirements come straight from the imported ANU record.

Assessment will consist of a Final Exam, mid-semester exam(s), in-class quizzes and a project, or some combination thereof. See the class summary for details.

Learning outcomes 1, 2, 3, 4, 5, 6, 7, 8

100%

Study expectations

Study information

130 hours in total over the semester consisting of lectures, tutorials/workshops and private study time. (130 hours in total)

Texts and reading

See Class Summary

Related courses

ECON8037

Related ANU course

Co taught

Course essentials

Academic year: 2026
Course subject: ECON
Subject name: Economics
Academic career: UGRD
School: Research School of Economics
College: ANU College of Business and Economics
Convener: Not listed
Delivery: In Person
Unit value: 6 units
EFTSL: 0.125
Last source update: Not listed

View the ANU course source

Fees

Domestic fee paying students: Domestic · 2026 · Course basis; $5,520
International fee paying students: International · 2026 · Course basis; $7,020
Student Contribution Band Code 34: Commonwealth supported · 2026; ANU contribution-band code 34

Areas and attributes

Areas of interest

EconomicsFinance