BFF5520 Advanced foundations of finance
Faculty of Business and Economics
BFF5520 Advanced foundations of finance is a level 5, 6-credit-point, postgraduate unit from the Faculty of Business and Economics, offered in 2027 in Semester 1 and Semester 2 at Caulfield. It has no prerequisites and unlocks 3 units.
- Credit points
- 6
- Offered in 2027
- Semester 1, Semester 2
- Caulfield
- Assessment
- Exam 50%
- and 1 other task
- Workload
- 144 hours
- per semester
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Requisites
Before BFF5520
Prohibitions
You can't enrol if you have passed any of these.
After BFF5520
3 units list BFF5520 as a prerequisite or corequisite.
Enrolment rules
You must be enrolled in course B6001, B6003, B6011, B6014, B6036, B6038, B6039, B6043, B6048, B6051 or B6060 to undertake this unit.
If you are enrolled in B6060 you must have completed 144 credit points to undertake this unit.
Overview
This course provides a rigorous introduction to the foundations of modern finance and its applications in investments and corporate financial decisions. You will develop a comprehensive understanding of corporate finance and financial markets; risk, risk aversion, risk premium, and asset pricing models; corporate investment and financing decisions; and general principles of securities valuation and equity valuation models.
Offerings in 2027
| Teaching period | Campus | Mode |
|---|---|---|
| First semester | Caulfield | Flexible |
| Second semester | Caulfield | Flexible |
Assessment
- Project50%
- Examination50%
Assessment details may change. Please refer to the assessment information in Moodle closer to the start of the teaching period.
Learning outcomes
When you finish this unit, you should be able to:
- 1
develop an understanding of the environment surrounding financial market investors and corporate managers and its impacts on their decisions.
- 2
discuss the concepts of risk, risk aversion, decisions under uncertainty, and their applications in diversification and modern portfolio theory.
- 3
critique classic and contemporary asset pricing models.
- 4
evaluate the concept of market efficiency in light of rational expectations and behavioural traits of financial market participants.
- 5
demonstrate an understanding of corporate managers’ critical decisions on capital budgeting, capital structure, payout, and risk management policies.
- 6
apply the understanding of investment and corporate financing theories to valuation of securities in general and common stocks in particular.
Workload and teaching
- Tutorials12 hours
- Seminars24 hours
- Teaching approachActive learning
- Teaching approachProblem-based learning
Minimum total expected workload to achieve the learning outcomes for this unit is 144 hours per semester typically comprising a mixture of scheduled learning activities and independent study. Independent study may include associated readings, assessment and preparation for scheduled activities. You are expected to complete all pre-class activities prior to your scheduled class, and post-class activities should be completed after your scheduled class. Learning activities may include a combination of teacher directed, peer directed and online engagement activities.
This unit engages you in actively applying your knowledge, skills and attributes in interactive, collaborative and reflective activities.
This unit includes problem-based learning approaches, where you engage in research, integrate theory and practice and apply knowledge and skills to develop viable solutions in response to a problem or set of problems.
Learning resources
Technology resources
There may be an additional cost associated with purchasing a physical and/or virtual calculator. Specific details will be provided in the Learning Management System by commencement of Orientation week.
Contacts
- Chief Examiners
- Dr Viet Nga Cao
Common questions
What are the prerequisites for BFF5520?
BFF5520 has no prerequisites, but enrolment rules apply.
What can I take after BFF5520?
BFF5520 is a prerequisite or corequisite for 3 units, including BFF5300, BFF5340 and BFF5915.
When is BFF5520 offered?
In 2027, BFF5520 runs in Semester 1 and Semester 2 at Caulfield.
How much work is BFF5520?
The handbook expects about 144 hours of study across the semester. No students have rated its difficulty yet.
Does BFF5520 have an exam?
Yes. The exam is worth 50% of the final mark, alongside 1 other task.