BFX4004 Asset pricing theory
Faculty of Business and Economics
BFX4004 Asset pricing theory is a level 4, 6-credit-point, undergraduate unit from the Faculty of Business and Economics, offered in 2025 in Semester 1 at Caulfield. It has no prerequisites.
- Credit points
- 6
- Offered in 2025
- Semester 1
- Caulfield
- Assessment
- Exam 50%
- and 1 other task
- Workload
- 144 hours
- per semester
This is the 2025 handbook entry. See the 2026 entry.
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Requisites
Before BFX4004
No prerequisites or corequisites besides the enrolment rules below.
After BFX4004
No unit lists BFX4004 as a prerequisite in the 2025 handbook.
Enrolment rules
You must be enrolled in course B3701 and have completed 24 credit points of study, or have course director approval, to undertake this unit.
Overview
This unit introduces you to the classical and modern theories of asset pricing. Topics covered include investors decision making and preferences; alternative asset pricing models; market imperfections and anomalies; and the implications of financial market prices on the real economy. There is a strong focus on understanding asset pricing theories and the importance and applications of these theories in practice.
Offerings in 2025
| Teaching period | Campus | Mode |
|---|---|---|
| First semester | Caulfield | On campus |
Assessment
- Within semester assessment50%
- Examination50%
Learning outcomes
When you finish this unit, you should be able to:
- 1
develop fundamental knowledge on the theoretical foundations of asset pricing models
- 2
critically analyse research papers examining current issues in asset pricing theories
- 3
demonstrate an ability to develop empirical testing and analysis of asset pricing theories
- 4
apply critical thinking, problem solving and presentation skills in individual and/or group activities dealing with issues in asset pricing theories and demonstrate in an individual summative assessment task the acquisition of a comprehensive understanding of the topics covered by BFX4004.
Workload and teaching
- Workshops36 hours
- Teaching approachProblem-based learning
- Teaching approachActive 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 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.
This unit engages you in actively applying your knowledge, skills and attributes in interactive, collaborative and reflective activities.
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 Idan Hodor
Common questions
What are the prerequisites for BFX4004?
BFX4004 has no prerequisites, but enrolment rules apply.
When is BFX4004 offered?
In 2025, BFX4004 runs in Semester 1 at Caulfield.
How much work is BFX4004?
The handbook expects about 144 hours of study across the semester. No students have rated its difficulty yet.
Does BFX4004 have an exam?
Yes. The exam is worth 50% of the final mark, alongside 1 other task.