BFX4003 Econometrics for finance
Faculty of Business and Economics
BFX4003 Econometrics for finance is a level 4, 6-credit-point, undergraduate unit from the Faculty of Business and Economics, offered in 2026 in Semester 1 at Caulfield. It has no prerequisites.
- Credit points
- 6
- Offered in 2026
- Semester 1
- Caulfield
- Assessment
- Exam 50%
- and 1 other task
- Workload
- 144 hours
- per semester
This is the 2026 handbook entry. See the 2027 entry.
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Requisites
Before BFX4003
No prerequisites or corequisites besides the enrolment rules below.
After BFX4003
No unit lists BFX4003 as a prerequisite in the 2026 handbook.
Enrolment rules
You must be enrolled in course B3701 to undertake this unit.
Overview
This unit introduces you to the financial econometrics models and techniques that are commonly used in empirical finance research. The topics covered in this unit include conditional expectations, linear projections, linear regression models, unobserved effects, and instrumental variables.
Offerings in 2026
| Teaching period | Campus | Mode |
|---|---|---|
| First semester | Caulfield | On campus |
Assessment
- Exercise50%
- 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
understand the concepts of conditional expectations and linear projections
- 2
understand the asymptotic properties of ordinary least squares and be aware of the omitted variables problem and measurement error
- 3
estimate linear regression models with instrumental variables
- 4
implement unobserved fixed effects models
- 5
demonstrate in individual summative assessment tasks the acquisition of a comprehensive understanding of the topics covered by BFX4003.
Workload and teaching
- Workshops36 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
Required resources
You must subscribe for a WRDS account (free to Monash students) and obtain access to a statistical package of their choice (e.g. "R" is freeware).
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.
Where it fits
BFX4003 is part of 1 area of study in the 2026 handbook.
Contacts
- Chief Examiners
- Professor Neal Galpin
Common questions
What are the prerequisites for BFX4003?
BFX4003 has no prerequisites, but enrolment rules apply.
When is BFX4003 offered?
In 2026, BFX4003 runs in Semester 1 at Caulfield.
How much work is BFX4003?
The handbook expects about 144 hours of study across the semester. No students have rated its difficulty yet.
Does BFX4003 have an exam?
Yes. The exam is worth 50% of the final mark, alongside 1 other task.
Which majors and minors include BFX4003?
BFX4003 is part of Finance.