ETC5352 Foundations of quantitative finance
Faculty of Business and Economics
ETC5352 Foundations of quantitative finance is a level 5, 6-credit-point, postgraduate unit from the Faculty of Business and Economics, offered in 2027 in Semester 2 at Clayton. It needs ETC2430 and (ETC2520 or ETC5252).
- Credit points
- 6
- Offered in 2027
- Semester 2
- Clayton
- Assessment
- Exam 60%
- and 1 other task
- Workload
- 144 hours
- per semester
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Requisites
Before ETC5352
After ETC5352
No unit lists ETC5352 as a prerequisite in the 2027 handbook.
Overview
This unit will introduce you to the basic theories of financial market behaviour, modelling of investment risk, interest rate models and option pricing models. You 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 2027
| Teaching period | Campus | Mode |
|---|---|---|
| Second semester | Clayton | On campus |
Assessment
- Quiz / Test40%
- Examination60%
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
have a critical understanding of the foundational theories of financial market behaviourÂ
- 2
understand and critique measures of investment risk as they relate to insurance
- 3
estimate, interpret and utilise models of investments returns, term structure of interest rates, and credit risk models
- 4
understand the theoretical foundations and practice of option pricing models, including various methods for pricing options.
Workload and teaching
- Assessments2 hours
- Tutorials12 hours
- Seminars24 hours
- Workshops12 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
- Professor Athanasios Pantelous
Common questions
When is ETC5352 offered?
In 2027, ETC5352 runs in Semester 2 at Clayton.
How much work is ETC5352?
The handbook expects about 144 hours of study across the semester. No students have rated its difficulty yet.
Does ETC5352 have an exam?
Yes. The exam is worth 60% of the final mark, alongside 1 other task.