This unit provides an overview of investment and risk, and proposes strategies to manage the risks of different investment practices. Students will discriminate between different types of risks encountered by contemporary organisations and investigate models designed to help manage those risks. Students will apply statistics to assess distribution of asset returns, measure risk, measure the components of total risk, measure the risk in portfolio construction and management, the efficient market concept, option pricing models and forecast volatility.
Unit details
Location:
Study level:
Undergraduate
Credit points:
12
Unit code:
BEO3000
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Learning Outcomes
| 1. | Exhibit an understanding of different types of risks faced by corporate entities; | ||
| 2. | Appraise different theories regarding the operation of financial markets and their impact on predictions of returns and volatilities of different financial assets; | ||
| 3. | Critically review a range of models to quantify risk and apply them to local and global contexts; | ||
| 4. | Exhibit effective interpersonal skills to collaborate with and influence team members, respecting the diversity of team contributions and commitment to achieving team outcomes whilst assuming responsibility and accountability for their own learning and professional practice; and | ||
| 5. | Elucidate independent expositions of knowledge and ideas to clearly, coherently and succinctly address complex and unpredictable problems. |
Assessment
Melbourne campuses
Students studying under the VU Block Model.
| Assessment type | Description | Grade |
|---|---|---|
| Test | Multiple Choice (Theoretical and/or Practical) | 10% |
| Assignment | Group Assignment in risk modelling | 30% |
| Case Study | Case studies in risk attribution and derivative applications | 20% |
| Test | Short Answer Questions (Practical) | 40% |
Other locations
| Assessment type | Description | Grade |
|---|---|---|
| Test | Multiple Choice and Short Answers | 20% |
| Assignment | Assignment | 20% |
| Examination | Final Examination | 60% |
Required reading
Quantitative financial risk management.
Miller, M. B. (2019).
Hoboken, New Jersey: John Wiley & Sons, Inc. (Wiley finance series).
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