Students
AFIN250 – Investments
2015 – S2 Evening
General Information
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| Unit convenor and teaching staff |
Unit convenor and teaching staff
Unit Convenor/Lecturer
Narelle Gordon
Contact via Email
Refer to iLearn
Unit Administrator
Veronica Chen
Contact via Email
Refer to iLearn
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|---|---|
| Credit points |
Credit points
3
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| Prerequisites |
Prerequisites
(15cp including ((AFIN100 or ACST152) and (ACCG100 or ACCG106) and (STAT170 or STAT171))) or ACST252
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| Corequisites |
Corequisites
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| Co-badged status |
Co-badged status
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| Unit description |
Unit description
The investment industry has experienced rapid change over the past three decades. Many of these changes in the investment environment are discussed in this unit. An important theme of the unit is that developed markets are near-informational-efficient - that higher expected returns only come by bearing greater investment risk. Throughout the unit a modern portfolio theory approach is applied, focussing on the implications of efficient diversification, in providing a proper measurement of risk and the risk-return relationship. The asset allocation choice is also considered in depth, as it is a primary determinant of the risk-return profile of the investment portfolio. In summary, the unit introduces the principles of valuation as applied to a broad range of asset classes including models of equity valuation, debt valuation, commodities, private equity, and alternative investments such as distressed securities and real estate.
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Important Academic Dates
Information about important academic dates including deadlines for withdrawing from units are available at https://www.mq.edu.au/study/calendar-of-dates
Learning Outcomes
On successful completion of this unit, you will be able to:
- Knowledge of the investment environment including legal obligations of firms with respect to integrity of capital markets.
- Understand the implications of the varying degrees of efficiency in the market for the role of theoretical risk-return asset pricing models.
- Understand the importance of asset allocation choices ie., stocks, bonds versus the selection of individual securities in forming portfolios.
- Analyse bond prices and yields.
- Ability to understand the effects of combining options and derivatives from an investment perspective.
General Assessment Information
It is the responsibility of students to view their marks for each within session assessment on iLearn within 20 working days of posting. If there are any discrepancies, students must contact the unit convenor immediately. Failure to do so will mean that queries received after the release of final results regarding assessment tasks (not including the final exam mark) will not be addressed
Assessment Tasks
| Name | Weighting | Due |
|---|---|---|
| Assessed Coursework | 10% | Two random weeks |
| Class Test | 20% | Week 7 |
| Assignment | 15% | 12 October 2015- 4pm |
| Final Examination | 55% | University Examination Period |
Assessed Coursework
Due: Two random weeks
Weighting: 10%
Students are expected to prepare solutions to tutorial problems before the class each week. The tutor can randomly select students to answer problems. In addition, tutors will randomly collect students tutorial work, on two occasions. Each collection is worth a maximum of 5%. Students whose work is not collected on a day will receive 0 marks, except for cases in which an application for special consideration is made and approved.
On successful completion you will be able to:
- Understand the importance of asset allocation choices ie., stocks, bonds versus the selection of individual securities in forming portfolios.
- Analyse bond prices and yields.
- Ability to understand the effects of combining options and derivatives from an investment perspective.
Class Test
Due: Week 7
Weighting: 20%
The Class Test is scheduled to be held during the regular lecture in Week 7. The total time available for the class test is 90 minutes. The class test is based on topics covered during lectures 1 to 5, inclusive. No dictionaries of any kind are allowed in the class test. Non-programmable calculators are allowed, provided that they are not capable of storing text. Refer to iLearn for further details.
No extensions will be granted. Students who do not sit the test will be awarded a mark of 0, except for cases in which an application for special consideration is made and approved.
On successful completion you will be able to:
- Knowledge of the investment environment including legal obligations of firms with respect to integrity of capital markets.
- Understand the implications of the varying degrees of efficiency in the market for the role of theoretical risk-return asset pricing models.
Assignment
Due: 12 October 2015- 4pm
Weighting: 15%
The assignment is based on a Harvard case study. Students will work on a case study in groups of 3 or 4. Groups must submit the assignment to TURNITIN through iLearn by 4pm on Monday the 12th of October 2015. See iLearn for more information.
No extensions will be granted. Late assignments will be accepted up to 72 hours after the submission deadline. There will be a deduction of 20% of the total available marks made from the total awarded mark for each 24 hour period or part thereof that the submission is late (for example - 25 hours late in submission - 40% penalty). This penalty does not apply for cases in which an application for special consideration is made and approved.
On successful completion you will be able to:
- Understand the implications of the varying degrees of efficiency in the market for the role of theoretical risk-return asset pricing models.
- Understand the importance of asset allocation choices ie., stocks, bonds versus the selection of individual securities in forming portfolios.
Final Examination
Due: University Examination Period
Weighting: 55%
The final exam is based on topics covered during lecture weeks 1 to 12, inclusive. No dictionaries of any kind are allowed in the final examination. Non–programmable calculators are allowed, provided that they are not capable of storing text.
On successful completion you will be able to:
- Knowledge of the investment environment including legal obligations of firms with respect to integrity of capital markets.
- Understand the implications of the varying degrees of efficiency in the market for the role of theoretical risk-return asset pricing models.
- Understand the importance of asset allocation choices ie., stocks, bonds versus the selection of individual securities in forming portfolios.
- Analyse bond prices and yields.
- Ability to understand the effects of combining options and derivatives from an investment perspective.
Delivery and Resources
The weekly three hour class time for this unit consists of a two hour lecture and a one hour tutorial. The timetable for classes can be found on the University web site at: http://www.timetables.mq.edu.au/
The required textbook is 'Essentials of Investments', Bodie, Kane, & Marcus. 9th edition, 2013, McGraw Hill. It is available for purchase from the Macquarie University Co-op Bookshop, and a copy will be available in the closed reserve section of the Macquarie Library.
Technology Used and Required
Unit Web Page
- The web page for this unit can be found at: http://ilearn.mq.edu.au
- It is the responsibility of students to visit the unit site at least twice a week. Course material is available on the learning management system (iLearn).
- Lecture notes, tutorial solutions, unit announcements, and other reference materials will be posed to this site throughout the semester.
Unit Schedule
|
Lecture Week |
Week Beg. |
Lecture Topic |
Text |
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1 |
27 July |
Introduction |
BKM 1 - 2 |
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2 |
3 August |
Markets |
BKM 3 - 4 |
|
3 |
10 August |
Risk & Return |
BKM 5 |
|
4 |
17 August |
Efficient Diversification |
BKM 6 |
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5 |
24 August |
Asset Pricing Models |
BKM 7 |
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6 |
31 August |
Efficient Markets and Behavioral Finance |
BKM 8 - 9 |
| 7 | 7 September | Class Test | |
| 14-25 September | MID-SEMESTER BREAK | ||
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8 |
28 September |
Bond Prices and Bond Portfolios |
BKM 10 - 11 |
|
9 |
5 October |
Macroeconomic and Industry Analysis |
BKM 12 |
|
10 |
12 October |
Equity Valuation and Financial Statement Analysis |
BKM 13 - 14 |
|
11 |
19 October |
Option Markets and Option Valuation |
BKM 15 - 16 |
|
12 |
26 October |
Futures Markets and Risk Management |
BKM 17 |
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13 |
2 November |
Review |
Policies and Procedures
Macquarie University policies and procedures are accessible from Policy Central. Students should be aware of the following policies in particular with regard to Learning and Teaching:
Academic Honesty Policy http://mq.edu.au/policy/docs/academic_honesty/policy.html
Assessment Policy http://mq.edu.au/policy/docs/assessment/policy.html
Grading Policy http://mq.edu.au/policy/docs/grading/policy.html
Grade Appeal Policy http://mq.edu.au/policy/docs/gradeappeal/policy.html
Grievance Management Policy http://mq.edu.au/policy/docs/grievance_management/policy.html
Disruption to Studies Policy http://www.mq.edu.au/policy/docs/disruption_studies/policy.html The Disruption to Studies Policy is effective from March 3 2014 and replaces the Special Consideration Policy.
In addition, a number of other policies can be found in the Learning and Teaching Category of Policy Central.
Student Code of Conduct
Macquarie University students have a responsibility to be familiar with the Student Code of Conduct: https://students.mq.edu.au/support/student_conduct/
Results
Results shown in iLearn, or released directly by your Unit Convenor, are not confirmed as they are subject to final approval by the University. Once approved, final results will be sent to your student email address and will be made available in eStudent. For more information visit ask.mq.edu.au.
Supplementary Examinations
Further information regarding supplementary exams, including dates, is available here
Student Support
Macquarie University provides a range of support services for students. For details, visit http://students.mq.edu.au/support/
Learning Skills
Learning Skills (mq.edu.au/learningskills) provides academic writing resources and study strategies to improve your marks and take control of your study.
Student Services and Support
Students with a disability are encouraged to contact the Disability Service who can provide appropriate help with any issues that arise during their studies.
Student Enquiries
For all student enquiries, visit Student Connect at ask.mq.edu.au
IT Help
For help with University computer systems and technology, visit http://informatics.mq.edu.au/help/.
When using the University's IT, you must adhere to the Acceptable Use Policy. The policy applies to all who connect to the MQ network including students.
Graduate Capabilities
Creative and Innovative
Our graduates will also be capable of creative thinking and of creating knowledge. They will be imaginative and open to experience and capable of innovation at work and in the community. We want them to be engaged in applying their critical, creative thinking.
This graduate capability is supported by:
Learning outcome
- Ability to understand the effects of combining options and derivatives from an investment perspective.
Assessment task
- Final Examination
Discipline Specific Knowledge and Skills
Our graduates will take with them the intellectual development, depth and breadth of knowledge, scholarly understanding, and specific subject content in their chosen fields to make them competent and confident in their subject or profession. They will be able to demonstrate, where relevant, professional technical competence and meet professional standards. They will be able to articulate the structure of knowledge of their discipline, be able to adapt discipline-specific knowledge to novel situations, and be able to contribute from their discipline to inter-disciplinary solutions to problems.
This graduate capability is supported by:
Learning outcomes
- Knowledge of the investment environment including legal obligations of firms with respect to integrity of capital markets.
- Understand the implications of the varying degrees of efficiency in the market for the role of theoretical risk-return asset pricing models.
- Understand the importance of asset allocation choices ie., stocks, bonds versus the selection of individual securities in forming portfolios.
- Analyse bond prices and yields.
- Ability to understand the effects of combining options and derivatives from an investment perspective.
Assessment tasks
- Assessed Coursework
- Class Test
- Assignment
- Final Examination
Critical, Analytical and Integrative Thinking
We want our graduates to be capable of reasoning, questioning and analysing, and to integrate and synthesise learning and knowledge from a range of sources and environments; to be able to critique constraints, assumptions and limitations; to be able to think independently and systemically in relation to scholarly activity, in the workplace, and in the world. We want them to have a level of scientific and information technology literacy.
This graduate capability is supported by:
Learning outcomes
- Knowledge of the investment environment including legal obligations of firms with respect to integrity of capital markets.
- Understand the implications of the varying degrees of efficiency in the market for the role of theoretical risk-return asset pricing models.
- Understand the importance of asset allocation choices ie., stocks, bonds versus the selection of individual securities in forming portfolios.
- Analyse bond prices and yields.
- Ability to understand the effects of combining options and derivatives from an investment perspective.
Assessment tasks
- Assessed Coursework
- Class Test
- Assignment
- Final Examination
Problem Solving and Research Capability
Our graduates should be capable of researching; of analysing, and interpreting and assessing data and information in various forms; of drawing connections across fields of knowledge; and they should be able to relate their knowledge to complex situations at work or in the world, in order to diagnose and solve problems. We want them to have the confidence to take the initiative in doing so, within an awareness of their own limitations.
This graduate capability is supported by:
Learning outcomes
- Knowledge of the investment environment including legal obligations of firms with respect to integrity of capital markets.
- Understand the implications of the varying degrees of efficiency in the market for the role of theoretical risk-return asset pricing models.
- Understand the importance of asset allocation choices ie., stocks, bonds versus the selection of individual securities in forming portfolios.
- Analyse bond prices and yields.
- Ability to understand the effects of combining options and derivatives from an investment perspective.
Assessment tasks
- Assessed Coursework
- Class Test
- Assignment
- Final Examination
Changes from Previous Offering
There are no significant changes since the last offering. The weighting of the Final Exam is now 55%.
Changes since First Published
| Date | Description |
|---|---|
| 25/08/2015 | Learning Outcomes |