UnitLevel 3Undergraduate

ETC3520 Foundations of quantitative finance

Faculty of Business and Economics

ETC3520 Foundations of quantitative finance is a level 3, 6-credit-point, undergraduate unit from the Faculty of Business and Economics, offered in 2021 in Semester 2 at Clayton. It needs ETC2430.

Credit points
6
Offered in 2021
Semester 2
Clayton
Assessment
Exam 60%
and 1 other task
Workload
144 hours
per semester

This is the 2021 handbook entry. See the 2027 entry.

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Requisites

Before ETC3520

Prerequisites

Pass these before you enrol.

After ETC3520

No unit lists ETC3520 as a prerequisite in the 2021 handbook.

Enrolment rules

To be successful in this unit, background knowledge and application of maths is required at the equivalent of VCE Year 12 Higher level.  You may have satisfied this by completing relevant prerequisite unit/s, or you have covered relevant topics in your final years of secondary study.  You should self-assess your maths competency prior to enrolling in this unit.

Equivalent units

The same content under another code. Only one of them counts.

Overview

This unit will introduce students to the basic theories of financial market behaviour, modelling of investment risk, interest rate models and option pricing models. Students will be introduced to the mathematical and statistical foundations of financial modelling, especially the tools used to analyse interest rates and investment risk. Option pricing models will also be introduced, and related to the work of an Actuary.

Offerings in 2021

Teaching periodCampusMode
Second semesterClaytonOn campus

Assessment

  • Within semester assessment
    40%
  • Examination
    60%

Learning outcomes

When you finish this unit, you should be able to:

  1. 1

    understand the foundational theories of financial market behaviour

  2. 2

    understand measures of investment risk as they relate to insurance

  3. 3

    estimate, interpret and utilise models of investments returns, term structure of interest rates, and credit risk models

  4. 4

    understand the theoretical foundations and practice of option pricing models, including various methods for pricing options.

Workload and teaching

  • Lectures24 hours
  • Tutorials18 hours
  • 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. The unit requires on average three/four hours of scheduled activities per week. Scheduled activities may include a combination of teacher directed learning, peer directed learning and online engagement.

Where it fits

ETC3520 is part of 2 areas of study in the 2021 handbook.

Contacts

Unit Coordinators
Associate Professor Athanasios Pantelous
Chief Examiners
Associate Professor Athanasios Pantelous

Common questions

What are the prerequisites for ETC3520?

You need ETC2430 before you enrol. Enrolment rules also apply.

When is ETC3520 offered?

In 2021, ETC3520 runs in Semester 2 at Clayton.

How much work is ETC3520?

The handbook expects about 144 hours of study across the semester. No students have rated its difficulty yet.

Does ETC3520 have an exam?

Yes. The exam is worth 60% of the final mark, alongside 1 other task.

Which majors and minors include ETC3520?

ETC3520 is part of Actuarial studies.

More details

Credit points
6
Level
3
Study level
Undergraduate
Faculty
Faculty of Business and Economics
Organisational unit
Department of Econometrics and Business Statistics
Type
Coursework
EFTSL
0.125
Student contribution
SCA Band 1
Study abroad
Available