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Financial Economics - ECONJ13521

Plan Summary

 
Faculty: COMM - Australian School of Business
 
  
   
 
Program: 3521 - Commerce/Economics
 
 
Award(s):
 
 
Bachelor of Commerce (Major)
 
  

Plan Outline

Financial Economics is concerned with understanding how financial instruments are priced in markets and how individuals and firms manage financial risk.

Markets for financial instruments arise because some firms and individuals want to borrow while others want to save. A large corporation, for example, may borrow funds to purchase new plant and equipment by issuing further stock while an individual may save by purchasing stocks or government bonds. Markets for financial instruments also arise because firms and individuals want to manage financial risk. For example, a large corporation may bet against the risk of large fluctuations in the Australian - U.S. dollar exchange rate by selling its goods by way of futures contracts. Understanding how the prices of financial instruments are determined in the market place is a central concern of financial economics, along with the design of new financial derivatives.

The area of financial economics that deals with the study of real-world data is known as financial econometrics. Financial econometrics is concerned with the statistical analysis of financial data and testing the real-world applicability of asset-pricing theories. This major provides students with a thorough understanding of the economic principles that underlie the pricing and allocative role of all financial assets, whether they are stocks, bonds, futures or options.

Plan Structure

  • A major in Financial Economics consists of 60 UOC (10 courses). Nine (9) of these courses are specified; the other one (1) is an elective course that is chosen from the list below. This elective course must be at level 3 (i.e. ECON3XXX). This is regardless of whether you are doing a single major or taking Financial Economics as a second major.

Compulsory core courses
Please note: Students who complete a Financial Economics major as part of the BCom, must complete ECON1101 Microeconomics 1 (6 UOC) and ECON1203 Business and Economic Statistics as a normal requirement of the compulsory business core of the BCom).

Compulsory major specific courses

Elective courses

Honours

Honours level study is also available in Financial Economics. For students wishing to consider taking Honours and taking the Financial Economics major the following courses would be recommended as a good preparation for Honours:
Students interested in Honours should refer to the Honours plan record for entry requirements.

Further information

Please note that these requirements may be subject to change.
Students are advised to follow requirements according to the year they commenced. Please refer to previous editions of the Online Handbook for your program requirements.

Contact the Australian School of Business Student Centre for advice.
tel: + 61 2 9385 3189
location: Ground Floor, West Wing, Australian School of Business Building
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© The University of New South Wales (CRICOS Provider No.: 00098G), 2004-2011. The information contained in this Handbook is indicative only. While every effort is made to keep this information up-to-date, the University reserves the right to discontinue or vary arrangements, programs and courses at any time without notice and at its discretion. While the University will try to avoid or minimise any inconvenience, changes may also be made to programs, courses and staff after enrolment. The University may also set limits on the number of students in a course.