COMPUTATIONAL FINANCE

FIN3CLF

2015

Credit points: 15

Subject outline

Computational Finance aims to provide practical relevance and real-world application to finance concepts. Adopting a problem-solving approach, it focuses on computational issues in corporate finance, asset portfolios and stock options. The areas covered by the subject include application of net present valuation approach, capital cost estimation and regression analysis, asset and option pricing and risk management, portfolio optimisation, and simulation of financial outcomes. The subject intends to provide students with theories and modellingskills required for financial decision making in business and management and also enable students mastering the quantitative skills and computation techniques required to solve practical problems.

SchoolLa Trobe Business School

Credit points15

Subject Co-ordinatorAngela Lou

Available to Study Abroad StudentsYes

Subject year levelYear Level 3 - UG

Exchange StudentsYes

Subject particulars

Subject rules

Prerequisites FIN2FIN or FIN1FOF

Co-requisitesN/A

Incompatible subjectsN/A

Equivalent subjectsN/A

Special conditionsN/A

Readings

Resource TypeTitleResource RequirementAuthor and YearPublisher
ReadingsFinancial modellingPrescribedBenninga, S.4RD ED. MIT PRESS, 2014

Graduate capabilities & intended learning outcomes

01. A fine understanding of main financial theories introduced to the subject

Activities:
Lecture, computer lab class, assignment, practice exam, final exam
Related graduate capabilities and elements:
Literacies and Communication Skills (Quantitative Literacy)
Inquiry and Analytical Skills (Creative Problem-solving,Inquiry/Research)
Inquiry and Analytical Skills (Creative Problem-solving,Inquiry/Research)
Personal and Professional Skills (Teamwork including leadership and working in groups,Autonomy and independence,Adaptability Skills)

02. Ability to explain the main mathematical constituents of financial statements and optimisation problem

Activities:
Lecture, computer lab class, assignment, practice exam, final exam
Related graduate capabilities and elements:
Literacies and Communication Skills (Quantitative Literacy)
Inquiry and Analytical Skills (Creative Problem-solving,Inquiry/Research)
Inquiry and Analytical Skills (Creative Problem-solving,Inquiry/Research)
Personal and Professional Skills (Teamwork including leadership and working in groups,Autonomy and independence,Adaptability Skills)

03. Ability to translate practical problems into a formal language and solve them accordingly

Activities:
Lecture, computer lab, assignment, practice exam, final exam
Related graduate capabilities and elements:
Inquiry and Analytical Skills (Creative Problem-solving,Inquiry/Research)
Inquiry and Analytical Skills (Creative Problem-solving,Inquiry/Research)
Personal and Professional Skills (Teamwork including leadership and working in groups,Autonomy and independence,Adaptability Skills)

04. Ability to solve various financial problems by Excel: including asset evaluation, optimal portfolio generation, option pricing, etc.

Activities:
Lecture, computer lab class, assignment
Related graduate capabilities and elements:
Literacies and Communication Skills (Quantitative Literacy)
Inquiry and Analytical Skills (Creative Problem-solving,Inquiry/Research)
Inquiry and Analytical Skills (Creative Problem-solving,Inquiry/Research)
Personal and Professional Skills (Teamwork including leadership and working in groups,Autonomy and independence,Adaptability Skills)
Personal and Professional Skills (Teamwork including leadership and working in groups,Autonomy and independence,Adaptability Skills)

05. Master the quantitative skills and computation techniques

Activities:
Lecture, computer lab class, assignment
Related graduate capabilities and elements:
Literacies and Communication Skills (Quantitative Literacy)
Inquiry and Analytical Skills (Creative Problem-solving,Inquiry/Research)

06. Develope modelling skills required for financial decision making in business and management

Activities:
Lecture, computer lab class, assignment
Related graduate capabilities and elements:
Inquiry and Analytical Skills (Creative Problem-solving,Inquiry/Research)
Inquiry and Analytical Skills (Creative Problem-solving,Inquiry/Research)
Personal and Professional Skills (Teamwork including leadership and working in groups,Autonomy and independence,Adaptability Skills)

07. Develop professional forms that facilitate financial evaluation and investment tasks

Activities:
Lecture, computer lab class
Related graduate capabilities and elements:
Literacies and Communication Skills (Quantitative Literacy)
Inquiry and Analytical Skills (Creative Problem-solving,Inquiry/Research)
Personal and Professional Skills (Teamwork including leadership and working in groups,Autonomy and independence,Adaptability Skills)
Personal and Professional Skills (Teamwork including leadership and working in groups,Autonomy and independence,Adaptability Skills)

08. Develop creative ways to solve financial problems efficiently

Activities:
Lecture, computer lab class
Related graduate capabilities and elements:
Inquiry and Analytical Skills (Creative Problem-solving,Inquiry/Research)
Inquiry and Analytical Skills (Creative Problem-solving,Inquiry/Research)

Subject options

Select to view your study options…

Start date between: and    Key dates

Melbourne, 2015, Semester 2, Day

Overview

Online enrolmentYes

Maximum enrolment sizeN/A

Enrolment information

Subject Instance Co-ordinatorAngela Lou

Class requirements

Computer Laboratory Week: 31 - 43
One 1.0 hours computer laboratory other recurrence on weekdays during the day from week 31 to week 43 and delivered via face-to-face.

Lecture Week: 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.

Assessments

Assessment elementComments% ILO*
one 3-hour final examination70 01, 02, 03, 04, 06, 07
one 60 minute midterm examination20 01, 02, 03, 05, 06
tutorial exercisesequivalent to 1000-words10 01, 02, 03, 04, 05, 06, 08

Vietnam, 2015, Semester 2, Day

Overview

Online enrolmentNo

Maximum enrolment sizeN/A

Enrolment information

Subject Instance Co-ordinatorAngela Lou

Class requirements

Computer Laboratory Week: 31 - 43
One 1.0 hours computer laboratory other recurrence on weekdays during the day from week 31 to week 43 and delivered via face-to-face.

Lecture Week: 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.

Assessments

Assessment elementComments% ILO*
one 3-hour final examination70 01, 02, 03, 04, 06, 07
one 60 minute midterm examination20 01, 02, 03, 05, 06
tutorial exercisesequivalent to 1000-words10 01, 02, 03, 04, 05, 06, 08