INTERNATIONAL FINANCIAL MANAGEMENT

FIN5IFM

2014

Credit points: 15

Subject outline

In this subject, students will develop an understanding of the structure and operation of the international financial system, including an understanding of the process via which exchange rates are derived. Students will also develop a thorough knowledge and understanding of the logic and relevance of the four major international parity conditions: Purchasing Power Parity; Covered Interest Parity; Uncovered Interest Parity; and Real Interest Parity. Based on their understanding of these parity conditions, students will evaluate the relative merits and the risks avoided with investing in a foreign currency.

Faculty: Faculty of Business, Economics and Law

Credit points: 15

Subject Co-ordinator: Tu Nguyen

Available to Study Abroad Students: No

Subject year level: Year Level 5 - Masters

Exchange Students: No

Subject particulars

Subject rules

Prerequisites: N/A

Co-requisites: FIN5DER

Incompatible subjects: N/A

Equivalent subjects: N/A

Special conditions: N/A

Learning resources

Readings

Resource TypeTitleResource RequirementAuthor and YearPublisher
ReadingsGlobal investmentsPrescribedSolnik B., & D.McLeaveyPEARSON ADDISON WESLEY, 2006, 6TH EDITION

Melbourne, 2014, Semester 1, Day

Overview

Online enrolment: Yes

Maximum enrolment size: N/A

Enrolment information:

Subject Instance Co-ordinator: Tu Nguyen

Class requirements

LectureWeek: 10 - 22
One 2.0 hours lecture other recurrence on weekdays during the day from week 10 to week 22 and delivered via face-to-face.

TutorialWeek: 10 - 22
One 1.0 hours tutorial other recurrence on weekdays during the day from week 10 to week 22 and delivered via face-to-face.

Assessments

Assessment elementComments%
(4,000-word group project)case study15
mid-semester exam30
one 3-hour final examinationHurdle requirement: Students must achieve at least 50% in the final examination as well as a minimum of 50% in the sum of the marks for all assessment tasks to pass the subject50
tutorial assessment5

Melbourne, 2014, Semester 2, Day

Overview

Online enrolment: Yes

Maximum enrolment size: N/A

Enrolment information:

Subject Instance Co-ordinator: Tu Nguyen

Class requirements

LectureWeek: 31 - 43
One 2.0 hours lecture other recurrence on weekdays during the day from week 31 to week 43 and delivered via face-to-face.

TutorialWeek: 31 - 43
One 1.0 hours tutorial other recurrence on weekdays during the day from week 31 to week 43 and delivered via face-to-face.

Assessments

Assessment elementComments%
(4,000-word group project)case study15
mid-semester exam30
one 3-hour final examinationHurdle requirement: Students must achieve at least 50% in the final examination as well as a minimum of 50% in the sum of the marks for all assessment tasks to pass the subject50
tutorial assessment5