| Course Overview
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This course is designed for those with demonstrated finance skills who wish to deepen their knowledge of finance and develop a specialisation in one or more sub-disciplines of finance. The course aims to: advance undergraduate finance skills; provide a solid understanding of first principles in finance theory; and to facilitate the application of financial theory to enable students to read and think critically and creatively about financial issues. This course also provides an appropriate foundation program for students intending to proceed to the PhD program in Finance.
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| Graduate Category |
Postgraduate |
| Graduate Attributes |
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| Objectives |
On successful completion of this course, students should be able to:
- Apply the necessary analytical skills and techniques to critically assess a wide range of issues in financial management;
- Apply quantitative rigour in the assessment and analysis of financial research issues;
- Demonstrate an advanced understanding of the fundamental principles of finance;
- Critically evaluate the relevant scholarly literature in finance;
- Identify, critically assess and interpret financial decision-making;
- Analyse new financial issues and use financial data;
- Design, conduct and report independent and original research on a closely-defined research project in the area of finance; and
- Manage financial information effectively, including the application and advanced knowledge of computer systems and software, where appropriate to the students field of study and research report in finance.
On successful completion of this course, students should be able to demonstrate the following attributes and skills:
- Independent research;
- Analysis, interpretation and synthesis of information;
- Problem solving;
- Time management, which should be developed through the research report and time spent on maximizing the quality of research;
- Oral and written communication;
- Team work; and
- Using computer systems and software.
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| Generic Skills |
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| Career Options |
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| Subjects
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| Stream Description
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The Master of Commerce (Finance) consists of one core finance subject, one quantitative subject, four elective subjects and the (double subject) Research Report. |
| Stream Structure |
Core subject:
At least one quantitative subject selected from:
| Subject |
Semester |
Credit Points |
| 333-627
Numerical Techniques in FinanceNumerical Techniques focuses on the theory and application of numerical methods for solving financial problems. The applications may include option valuation, value at risk, term structure modelling, portfolio simulation and optimization and capital ...
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2 |
12.500 |
| 316-635
Basic EconometricsThis subject examines multiple regression analysis and its use in economics and commerce. Topics will include the properties of estimators, hypothesis testing, specification error, multicollinearity, dummy variables, heteroskedasticity, serial correl...
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1 |
12.500 |
| 316-637
Applied Microeconometric ModellingThis subject examines estimation and testing of microeconometric models based on cross-section and panel data and quantitative and limited dependent variables. Illustrative application topics normally will include labour economics, consumer demand an...
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2 |
12.500 |
| 316-638
Time Series Analysis and ForecastingNormally topics will include current techniques used in forecasting in finance, accounting and economics such as regression models, Box-Jenkins, ARIMA models, vector autoregression, causality analysis, cointegration and forecast evaluation, ARCH mode...
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2 |
12.500 |
| 316-673
Financial EconometricsThe subject presents an econometric treatment of topics in finance. Normally the finance topics will include portfolio theory, capital asset pricing models, arbitrage pricing theory, efficient markets hypothesis, covered interest parity, term structu...
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2 |
12.500 |
| 316-678
Econometric TechniquesEstimation and inference techniques for models involving a single equation and systems of equations are introduced. Normally topics include asymptotic theory, maximum likelihood estimation, classical testing procedures, generalised least squares esti...
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1 |
12.500 |
Four elective subjects selected from:
| Subject |
Semester |
Credit Points |
| 333-615
International Business FinanceForeign exchange market microstructure; tests of parity relationships; measurement and management of foreign exchange exposure; international asset pricing models; international cost of capital and capital structure; international capital budgeting; ...
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2 |
12.500 |
| 333-617
Financial Institutions ManagementObjectives of financial institutions; principles of financial intermediation; liquidity management; interest rate risk management; market risk; VaR; credit risk modelling; the role of capital; efficiency in the financial services sector; financial in...
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2 |
12.500 |
| 333-618
Advanced Derivative SecuritiesArbitrage bounds, stock price dynamics, geometric Brownian motion and Itos Lemma, Cox-Ross-Rubinstein binomial model, Black-Scholes model, risk neutral valuation, forwards and futures, currency, stock index, futures and exotic options, Interest rate ...
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Semester 1 |
12.50 |
| 333-621
Advanced Corporate FinanceA study of recent literature in a number of areas of corporate finance. Topics include: real options, mergers and acquisitions, capital structure decisions, dividend policy, security analysis and design and corporate hedging.
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1 |
12.500 |
| 333-622
Advanced InvestmentsThe principles and techniques of security pricing with particular emphasis on the latest research are examined. Topics include valuation, market microstructure, behavioural finance and asset pricing
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1 |
12.500 |
| 306-610
Financial Statement AnalysisAn examination of the role of financial statement information and analysis in the evaluation of the current profitability, liquidity and riskiness of public companies, and the prediction of their future condition by parties external to the firm. Topi...
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1 |
12.500 |
Students are encouraged to develop a program of study that is relevant to their academic and career objectives. To facilitate this, students may take other fourth year (level four), Masters (level six) or PhD (level seven) subjects offered at the University of Melbourne. Students must ensure that they meet the subject prerequisites. Approval of the Program Director of the Master of Commerce (Finance) is required.
Research report and workshop (students must enrol in this subject in two consecutive semesters):
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| Duration |
A full-time candidate is expected to complete the course in two consecutive semesters (one year). A part-time candidate is expected to complete the course in four consecutive semesters (two years) and to take the equivalent of two subjects in each semester. The maximum time permitted for completion is four years. |
| Further Study |
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| Admission Requirements
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Admission to the Master of Commerce course normally requires either:
(a) A four year Australian honours degree in economics, commerce or related discipline of at least second class honours (H2B 70-74%) standard; or
(b) Successful completion of a preliminary course, normally the relevant postgraduate diploma, at an overall standard at least equivalent to that required for second class honours (H2B 70-74%).
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| Faculty |
Economics and Commerce |
| Notes |
Please note
- Subjects offered in the Master of Applied Finance, Master of Financial Management and Postgraduate Diploma in Finance courses are not available to Master of Commerce (Finance) students.
- Students may take a maximum of two subjects (25 points) at fourth year (level four).
Assessment
Overall assessment in the Master of Commerce (Finance) will be an average of each of the percentage marks gained in the six subjects and the Research Report (double subject). Master of Commerce students should note that the overall pass grade for the Master of Commerce course is 65%. The overall average of the subjects taken towards the degree of Master of Commerce are calculated as follows:
H1 80-100%
H2A 75-79%
P 65-74%
Candidates achieving an overall average of H1 or H2A will be awarded the Master of Commerce (Honours) degree.
Accelerated progression from a Postgraduate Diploma to a Master of Commerce
A student enrolled in the Postgraduate Diploma in Finance is eligible for accelerated admission into the Master of Commerce if he or she obtains a first class honours average (80%+) in his or her first 50 points of study, provided no more than 12.5 points of the 50 points are at third year level (level 3 subjects).
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