Units

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Sample subject outline - Semester 2 2013

Note: Subject outlines often change before the semester begins. Below is a sample outline.

Rationale

Finance provides one of the significant areas for the application of mathematics. Understanding the fundamental principles involved will enhance your general preparation for life and provide an essential tool for those of you who intend to pursue further studies or careers in the financial area.

Aims

The aim of this postgraduate unit is to provide you with an introduction to the methods used in obtaining relevant solutions to financial and business problems.

Objectives

On successful completion of this unit you should be able to:

1. Show an understanding of the modelling of financial processes and of the time value of money and define, derive, use and calculate present and future values of single sums, annuities, and the more important compound interest functions.

2. Show an understanding of the futures market and apply calculus and analytical geometry techniques to the solution of economic and business problems.

3. Apply compound interest to evaluation of redeemable securities and apply discounted cash flow techniques to project evaluation.

4. Demonstrate generic capabilities including the presentation of clear and logical mathematical arguments, the recognition of limitations of theory and techniques, and drawing on and applying knowledge and thinking skills to solve problems.

Content

Simple interest, compound interest, nominal and effective rates of interest, equations of value, accumulation and discounting of single sums, valuation of simple immediate annuities certain and their applications, valuation of money and fixed interest market securities and analysis of transactions in these markets, project evaluation using compound interest techniques, quantitative techniques in economics and finance.

Approaches to Teaching and Learning

The unit will draw on a wide variety of examples from finance and economics of relevance across all cultures, nationalities and genders. You will analyse real world problems to reinforce the relevance of the lecture material and to provide you with a framework for lifelong learning in this area of knowledge.

You will attend 3 hours of lectures and a 1 hour workshop per week.

Note that this unit is being taught concurrently with an undergraduate offering of the same subject. University policy permits that postgraduate and undergraduate students attend the same lectures. Separate workshop/discussion groups will be provided for postgraduate students where numbers allow. As a postgraduate student you will be required to complete separate or additional assessment.

Assessment

The assessment items in this unit are designed to determine your level of competency, measured against criteria, in meeting the unit outcomes while providing you with a range of tasks with varying levels of skill development and difficulty.Formative feedback will be provided for the in-semester assessment items by way of written comments on the assessment items, student perusal of the marked assessment piece and informal interview as required.

Summative feedback will be provided throughout the semester with progressive posting of results via Blackboard.

Assessment name: Examination (Theory)
Description: The final exam will assess you on your knowledge and ability in all sections of lecture content.
Relates to objectives: 1-4
Weight: 50%
Internal or external: Internal
Group or individual: Individual
Due date: End of Semester

Assessment name: Problem Solving Task
Description: You will be assessed at a number of points during semester via quizzes, diagnostic tests/assignments and / or progress examinations. This assessment will provide a measure of the degree of content and concept learning achieved and acts as a focus for the development of learning skills and strategies.
Relates to objectives: 1-4
Weight: 50%
Internal or external: Internal
Group or individual: Individual
Due date: Throughout Semester

Academic Honesty

QUT is committed to maintaining high academic standards to protect the value of its qualifications. To assist you in assuring the academic integrity of your assessment you are encouraged to make use of the support materials and services available to help you consider and check your assessment items. Important information about the university's approach to academic integrity of assessment is on your unit Blackboard site.

A breach of academic integrity is regarded as Student Misconduct and can lead to the imposition of penalties.

Resource materials

1. Knox, Zima & Brown (1999) Mathematics of Finance, 2nd edition, Irwin Mc Graw Hill

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Risk assessment statement

There are no out of the ordinary risks associated with this unit as all classes will be held in ordinary lecture theatres. Emergency exits and assembly areas will be pointed out in the first few lectures. Students are referred to the University policy on health and safety.

http://www.hrd.qut.edu.au/healthsafely/healthsafe/index.jsp

Disclaimer - Offer of some units is subject to viability, and information in these Unit Outlines is subject to change prior to commencement of semester.

Disclaimer - Offer of some units is subject to viability, and information in these Unit Outlines is subject to change prior to commencement of semester.

Last modified: 10-May-2012