Course coordinator
Dr Shino Takayama
Course overview
- Study period
- Semester 1, 2025 (24/02/2025 - 21/06/2025)
- Study level
- Undergraduate
- Location
- St Lucia
- Attendance mode
- In Person
- Units
- 2
- Administrative campus
- St Lucia
- Coordinating unit
- Economics School
Modern finance theory has its foundations in economics. This course will provide an in-depth analysis of economic decision making in an uncertain environment as well as the implications for asset pricing and contract design. Students will learn to use economic tools enabling them to solve real world complex problems in the financial sphere.
In this course we study how economic theory solves problems in financial markets. ﾠFinancial Economics is a field that studies how people and markets make financial decisions. It covers concepts like how money's value changes over time, the relationship between risk and return, pricing of assets like stocks and bonds, and the efficiency of markets. In this course, weﾠlearn important concepts and topics in financial economics. ﾠOverall, the courseﾠaims to provide a better understanding of financial economics by using contractﾠtheory and economics under uncertainty.
Course requirements
Prerequisites
You'll need to complete the following courses before enrolling in this one:
ECON2010 or 2011
Recommended prerequisites
We recommend completing the following courses before enrolling in this one:
ECON1050
Course contact
School enquiries
School Enquiries, School of Economics
All enquiries regarding student and academic administration (i.e. non-course content information, e.g., class allocation, timetables, extension to assessment due date, etc.) should be directed toﾠenquiries@economics.uq.edu.au.ﾠ
Enquiries relating specifically to course content should be directed to the Course Coordinator/Lecturer.
Course staff
Timetable
The timetable for this course is available on the UQ Public Timetable.
Additional timetable information
Lectures commence in Teaching Week 1.
Tutorials commence in Teaching Week 2.
Please see the Learning Activities section of this Course Profile for the timetabling implications of public holidays.
Important Dates:
· Public Holidays: Fri 18 April (Good Friday), Mon 5ﾠMay (Labour Day).
· Mid-Semester Break: 21ﾠApril - 25ﾠApril. Semester 1 classes recommence on Mon 28ﾠApril.
Students should refer to the timetable prior to the commencement of classes to ensure that they have the most up to date information, as from time to time late room changes may occur.
Aims and outcomes
Although at first financial systems may appear to be complicated, financial economics can provide a straightforward analytical and descriptive picture of how all financialﾠsystems work.ﾠ At the same time, microeconomic theory can offerﾠa theoretical framework for analyzing the economic behavior of individuals who are regarded either as consumers of products or as managers of firms.ﾠ Through this course, students will learnﾠhow assets are priced, we evaluate risks involved in investment, and how firms manage their investment.
Learning outcomes
After successfully completing this course you should be able to:
LO1.
Use economic theories to analyse choices under uncertainty in the context of financial markets
LO2.
Apply economic theories to explain how risk averse investors optimize their choices
LO3.
Demonstrate how to price financial assets using financial economic theories
LO4.
Illustrate the impact of asymmetric information on financial transactions
LO5.
Identify financial phenomena and assess their implications for economies
Assessment
Assessment summary
| Category | Assessment task | Weight | Due date |
|---|---|---|---|
| Tutorial/ Problem Set | Tutorial Preparation | 10% |
3/03/2025 - 26/05/2025
Due at 1pm on Mondays. For 5 May (Labour day), the due date is 1pm on 6 May (Tuesday). |
| Paper/ Report/ Annotation, Essay/ Critique | Assignment | 25% |
9/05/2025 4:00 pm |
| Presentation | Group Presentation | 25% |
19/05/2025 26/05/2025 |
| Examination |
Final Exam
|
40% |
End of Semester Exam Period 7/06/2025 - 21/06/2025 |
Assessment details
Tutorial Preparation
- Mode
- Written
- Category
- Tutorial/ Problem Set
- Weight
- 10%
- Due date
3/03/2025 - 26/05/2025
Due at 1pm on Mondays. For 5 May (Labour day), the due date is 1pm on 6 May (Tuesday).
- Learning outcomes
- L01, L02, L03, L04, L05
Task description
Students need to make a tutorial submission for all tutorials. Submission should be done through Blackboard. The due date is 1pm on Mondays. For 5 May (Labour day), the due date is 1pm on 6 May (Tuesday).
** This task evaluates student's abilities, skills and knowledge without the aid of Artifical Intelligence (AI). Students are advised that the use of AI technologies to develop responses is strictly prohibited and may constitute student misconduct under the Student Code of Conduct.
Submission guidelines
Blackboard.
Deferral or extension
You may be able to apply for an extension.
Late submission
You will receive a mark of 0 if this assessment is submitted late.
Unless approved by the course coordinator, late submissions will be marked as 0.
Assignment
- Mode
- Written
- Category
- Paper/ Report/ Annotation, Essay/ Critique
- Weight
- 25%
- Due date
9/05/2025 4:00 pm
- Learning outcomes
- L03, L04, L05
Task description
1. The questions will be available at a posted time that will be notified.
2. It will consist of mainly essays with some short answer questions including calculations.
3. Further information will be made available on Blackboard prior to the assessment.
4. Submission should be done during the period stated as "Due Date".
* This task evaluates student's abilities, skills and knowledge without the aid of Artifical Intelligence (AI). Students are advised that the use of AI technologies to develop responses is strictly prohibited and may constitute student misconduct under the Student Code of Conduct.
Submission guidelines
Deferral or extension
You may be able to apply for an extension.
Late submission
A penalty of 10% of the maximum possible mark will be deducted per 24 hours from time submission is due for up to 7 days. After 7 days, you will receive a mark of 0.
Group Presentation
- Mode
- Activity/ Performance
- Category
- Presentation
- Weight
- 25%
- Due date
19/05/2025
26/05/2025
- Learning outcomes
- L01, L02
Task description
Students are expected to present as a group for the last two weeks of the course.
Presentations will be recorded for the purpose of marking but will not be made available due to privacy.
* Artificial Intelligence (AI) provides emerging tools that may support students in completing this assessment task. Students may appropriately use AI in completing this assessment task. Students must clearly reference any use of AI in each instance. A failure to reference generative AI use may constitute student misconduct under the Student Code of Conduct.
Submission guidelines
Deferral or extension
You may be able to apply for an extension.
Late submission
You will receive a mark of 0 if this assessment is submitted late.
Unless approved by the course coordinator, late submissions will be marked as 0.
Final Exam
- In-person
- Mode
- Written
- Category
- Examination
- Weight
- 40%
- Due date
End of Semester Exam Period
7/06/2025 - 21/06/2025
- Learning outcomes
- L01, L02, L03, L04, L05
Task description
1. It will consist of MCQ (or/and Yes/No), short answers including calculations, and essays.
2. Further information will be made available on Blackboard prior to the Exam.
3. This is cumulative and covers all the materials for the course.
4. The duration is 120 minutes and 10 minutes reading time.
* This assessment task is to be completed in-person. The use of generative Artificial Intelligence (AI) tools will not be permitted. Any attempted use of Generative AI may constitute student misconduct under the Student Code of Conduct.
Exam details
| Planning time | 10 minutes |
|---|---|
| Duration | 120 minutes |
| Calculator options | (In person) Casio FX82 series only or UQ approved and labelled calculator |
| Open/closed book | Closed Book examination - no written materials permitted |
| Exam platform | Paper based |
| Invigilation | Invigilated in person |
Submission guidelines
Deferral or extension
You may be able to defer this exam.
Course grading
Full criteria for each grade is available in the Assessment Procedure.
| Grade | Cut off Percent | Description |
|---|---|---|
| 1 (Low Fail) | 0% - 29% |
Absence of evidence of achievement of course learning outcomes. |
| 2 (Fail) | 30% - 46% |
Minimal evidence of achievement of course learning outcomes. |
| 3 (Marginal Fail) | 47% - 49% |
Demonstrated evidence of developing achievement of course learning outcomes |
| 4 (Pass) | 50% - 64% |
Demonstrated evidence of functional achievement of course learning outcomes. |
| 5 (Credit) | 65% - 74% |
Demonstrated evidence of proficient achievement of course learning outcomes. |
| 6 (Distinction) | 75% - 84% |
Demonstrated evidence of advanced achievement of course learning outcomes. |
| 7 (High Distinction) | 85% - 100% |
Demonstrated evidence of exceptional achievement of course learning outcomes. |
Additional course grading information
A student’s final overall end of semester percentage mark will be rounded to determine their final grade.
For example, 64.5% rounds to 65%, while 64.4% rounds to 64%.
Supplementary assessment
Supplementary assessment is available for this course.
Additional assessment information
Plagiarism
The School of Economics is committed to reducing the incidence of plagiarism. Further information on plagiarism and how to avoid an allegation of plagiarism is available in this course profile under Policies & Procedures. Please refer to the Academic Integrity Module (AIM). It is strongly recommended that you complete the AIM if you have not already done so.
Learning resources
You'll need the following resources to successfully complete the course. We've indicated below if you need a personal copy of the reading materials or your own item.
Library resources
Find the required and recommended resources for this course on the UQ Library website.
Learning activities
The learning activities for this course are outlined below. Learn more about the learning outcomes that apply to this course.
Filter activity type by
Please select
| Learning period | Activity type | Topic |
|---|---|---|
Week 1 (24 Feb - 02 Mar) |
Lecture |
Lecture 1 Topic: Introduction to Financial Economics Learning outcomes: L01, L02 |
Multiple weeks From Week 2 To Week 13 |
Tutorial |
Tutorials start |
Week 2 (03 Mar - 09 Mar) |
Lecture |
Lecture 2 Topic: The Foundation of Financial Economics Learning outcomes: L01, L02 |
Week 3 (10 Mar - 16 Mar) |
Lecture |
Lecture 3 Topic: Investment Decision and Asset Pricing Learning outcomes: L03 |
Week 4 (17 Mar - 23 Mar) |
Lecture |
Lecture 4 Topic: Asymmetric Information and Financial Contract Learning outcomes: L03, L04, L05 |
Week 5 (24 Mar - 30 Mar) |
Lecture |
Lecture 5 Topics: Risk and Insurance Learning outcomes: L03, L04, L05 |
Week 6 (31 Mar - 06 Apr) |
Lecture |
Lecture 6 Topic: CAPM Learning outcomes: L03, L04, L05 |
Week 7 (07 Apr - 13 Apr) |
Lecture |
Lecture 7 Topic: Efficient Market Hypothesis and Behavioral Finance Learning outcomes: L03, L04, L05 |
Week 8 (14 Apr - 20 Apr) |
No student involvement (Breaks, information) |
Good Friday No Tutorials-Students who would normally attend tutorial on this day are advised to attend another session, for this week only. |
Lecture |
Lecture 8 Topic: Financial Crisis and Economic Theory Learning outcomes: L03, L04, L05 |
|
Mid-sem break (21 Apr - 27 Apr) |
No student involvement (Breaks, information) |
Break - No lecture & tutorials |
Week 9 (28 Apr - 04 May) |
Lecture |
Lecture 9 Topic: Financial Regulation and Introduction to Cryptocurrency Learning outcomes: L03, L04, L05 |
Week 10 (05 May - 11 May) |
No student involvement (Breaks, information) |
Labour Day No Tutorials-Students who would normally attend tutorial on this day are advised to attend another session, for this week only. Tutorial submission for this week is due on 6 May. |
Lecture |
Lecture 10 Topic: Decentralised Finance and Review Learning outcomes: L03, L04, L05 |
|
Week 11 (12 May - 18 May) |
Lecture |
Review Overview of the Course |
Week 12 (19 May - 25 May) |
Workshop |
Students Presentation |
Week 13 (26 May - 01 Jun) |
Workshop |
Students Presentation |
Policies and procedures
University policies and procedures apply to all aspects of student life. As a UQ student, you must comply with University-wide and program-specific requirements, including the:
- Student Code of Conduct Policy
- Student Integrity and Misconduct Policy and Procedure
- Assessment Procedure
- Examinations Procedure
- Reasonable Adjustments - Students Policy and Procedure
Learn more about UQ policies on my.UQ and the Policy and Procedure Library.