Students
MGSM836 – Investment Management
2019 – Term 4 Hong Kong
General Information
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| Unit convenor and teaching staff |
Unit convenor and teaching staff
Professor
Andrew Lepone
Contact via andrew.lepone@mq.edu.au
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| Credit points |
Credit points
4
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| Prerequisites |
Prerequisites
(MGSM835 and MGSM840) or MGNT808
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| Corequisites |
Corequisites
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| Co-badged status |
Co-badged status
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| Unit description |
Unit description
This unit develops a conceptual framework in the understanding of modern investments. MBA students learn about the investment industry, the risk-return relation, asset allocation between risky and risk-free assets, how optimal portfolios are constructed and why they are constructed the way they are. The unit also provides insights in terms of models that explain the cross-section of stock returns, articulating and considering the market efficiency debate, differences between behavioural finance and rational expectations, bond portfolio management, and portfolio insurance techniques (i.e. hedging with derivatives). The unit concludes by examining portfolio performance measurement as the final step in the investment process.
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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:
- Critically evaluate and assess how investment portfolios are constructed and their performance, using a conceptual framework for, and models that explain the structure, institutions and dynamics of modern investments
- Assess and synthesise the differences between behavioural finance and rational expectations in a global investment environment.
- Critically assess the impact of the ethical, social and environmental responsibilities of organisations on the construction of optimal portfolios and assessing their performance.
- Critically analyse stakeholder relationships involved in the construction of portfolios that create and deliver sustainable value across complex market interrelationships
Assessment Tasks
| Name | Weighting | Hurdle | Due |
|---|---|---|---|
| In Class Test | 30% | No | 26 October 2019 (Saturday) |
| Individual Assignment | 35% | No | 10 November 2019 |
| Group assignment | 35% | No | 24 November 2019 |
In Class Test
Due: 26 October 2019 (Saturday)
Weighting: 30%
Duration: To be advised
The In Class Test is a multiple choice quiz. Open book.
It will address topics covered in Block 1.
Additional information, including the time of the Quiz, will be advised in class.
On successful completion you will be able to:
- Critically evaluate and assess how investment portfolios are constructed and their performance, using a conceptual framework for, and models that explain the structure, institutions and dynamics of modern investments
- Assess and synthesise the differences between behavioural finance and rational expectations in a global investment environment.
- Critically assess the impact of the ethical, social and environmental responsibilities of organisations on the construction of optimal portfolios and assessing their performance.
- Critically analyse stakeholder relationships involved in the construction of portfolios that create and deliver sustainable value across complex market interrelationships
Individual Assignment
Due: 10 November 2019
Weighting: 35%
Case study to be submitted via Turnitin.
In response to specific questions, the submission will require quantitative analysis (financial modelling) and qualitative analysis (interpretation of results and other commentary).
The case study will be released in Block 1. The case study will be discussed in Block 2.
No extensions will be granted. There will be a deduction of 10% 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 – 20% penalty). This penalty does not apply for cases in which an application for special consideration is made and approved. No submission will be accepted after solutions have been posted.
On successful completion you will be able to:
- Critically evaluate and assess how investment portfolios are constructed and their performance, using a conceptual framework for, and models that explain the structure, institutions and dynamics of modern investments
- Assess and synthesise the differences between behavioural finance and rational expectations in a global investment environment.
- Critically assess the impact of the ethical, social and environmental responsibilities of organisations on the construction of optimal portfolios and assessing their performance.
- Critically analyse stakeholder relationships involved in the construction of portfolios that create and deliver sustainable value across complex market interrelationships
Group assignment
Due: 24 November 2019
Weighting: 35%
4,000 words maximum (excluding appendices). To be submitted via Turnitin.
The syndicate assignment covers the entire unit and prerequisite courses. Please include email addresses of all syndicate group members on the title page.
No extensions will be granted. There will be a deduction of 10% 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 – 20% penalty). This penalty does not apply for cases in which an application for special consideration is made and approved. No submission will be accepted after solutions have been posted.
50% of the marks for the assignment will be assessed based on individual contribution. Students will be required to complete a Self and Peer Assessment form so that the contribution of individual members in a group can be identified and assessed. Further instructions will be provided on iLearn.
Marking criteria will be made available in class.
On successful completion you will be able to:
- Critically evaluate and assess how investment portfolios are constructed and their performance, using a conceptual framework for, and models that explain the structure, institutions and dynamics of modern investments
- Assess and synthesise the differences between behavioural finance and rational expectations in a global investment environment.
- Critically assess the impact of the ethical, social and environmental responsibilities of organisations on the construction of optimal portfolios and assessing their performance.
- Critically analyse stakeholder relationships involved in the construction of portfolios that create and deliver sustainable value across complex market interrelationships
Delivery and Resources
Required Text
Bodie, Z., Kane, A. & Marcus, A. (2017) Investments, 11th edition, McGraw Hill, ISBN: 9781259277177
For information on textbook prices and online ordering, please refer to the Co-Op Bookshop webpage at http://www.coop.com.au
MGSM iLearn
The web page for this unit can be found at: https://ilearn.mq.edu.au/login/MGSM
Unit Schedule
Class Dates:
| Friday | 18 October 2019 | 6pm - 10pm |
| Saturday | 19 October 2019 | 2pm - 10pm |
| Sunday | 20 October 2019 | 9am - 5pm |
| Friday | 25 October 2019 | 6pm - 10pm |
| Saturday | 26 October 2019 | 2pm - 10pm |
| Sunday | 27 October 2019 | 9am - 5pm |
Students are required to attend all classes.
The unit will be presented as follows:
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Session |
Topic |
Required Textbook Reading |
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1 |
The Investment Environment |
Chapters 1-5 |
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2 |
Investment Return and Risk |
Chapters 6-7 |
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3 |
Individuals and Investing |
Chapters 9-10 |
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4 |
Managed Funds Basics; Measuring Managed Funds Performance; Critiquing Managed Funds |
Chapters 4 & 24 |
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5 |
Investing in Shares |
Chapters 17 & 25 |
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6 |
Investing Principles |
Chapters 18-19 |
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7 |
Bond Investments; Bond Valuation; Investment Strategies |
Chapters 14-16 |
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8 |
Market Efficiency and Behavioural Finance |
Chapters 11-12 |
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9 |
Other Investments: Preference Shares; Convertibles; Derivatives; Hedge Funds; Other Tangibles |
Chapters 21, 22 & 26 |
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10 |
Discussion Session on Project; Integration & Review |
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Policies and Procedures
Macquarie University policies and procedures are accessible from Policy Central (https://staff.mq.edu.au/work/strategy-planning-and-governance/university-policies-and-procedures/policy-central). Students should be aware of the following policies in particular with regard to Learning and Teaching:
- Academic Appeals Policy
- Academic Integrity Policy
- Academic Progression Policy
- Assessment Policy
- Fitness to Practice Procedure
- Grade Appeal Policy
- Complaint Management Procedure for Students and Members of the Public
- Special Consideration Policy (Note: The Special Consideration Policy is effective from 4 December 2017 and replaces the Disruption to Studies Policy.)
Undergraduate students seeking more policy resources can visit the Student Policy Gateway (https://students.mq.edu.au/support/study/student-policy-gateway). It is your one-stop-shop for the key policies you need to know about throughout your undergraduate student journey.
If you would like to see all the policies relevant to Learning and Teaching visit Policy Central (https://staff.mq.edu.au/work/strategy-planning-and-governance/university-policies-and-procedures/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/study/getting-started/student-conduct
Results
Results published on platform other than eStudent, (eg. iLearn, Coursera etc.) 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 or if you are a Global MBA student contact globalmba.support@mq.edu.au
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
If you are a Global MBA student contact globalmba.support@mq.edu.au
IT Help
For help with University computer systems and technology, visit http://www.mq.edu.au/about_us/offices_and_units/information_technology/help/.
When using the University's IT, you must adhere to the Acceptable Use of IT Resources Policy. The policy applies to all who connect to the MQ network including students.
Graduate Capabilities
PG - Discipline Knowledge and Skills
Our postgraduates will be able to demonstrate a significantly enhanced depth and breadth of knowledge, scholarly understanding, and specific subject content knowledge in their chosen fields.
This graduate capability is supported by:
Learning outcomes
- Critically evaluate and assess how investment portfolios are constructed and their performance, using a conceptual framework for, and models that explain the structure, institutions and dynamics of modern investments
- Assess and synthesise the differences between behavioural finance and rational expectations in a global investment environment.
- Critically assess the impact of the ethical, social and environmental responsibilities of organisations on the construction of optimal portfolios and assessing their performance.
- Critically analyse stakeholder relationships involved in the construction of portfolios that create and deliver sustainable value across complex market interrelationships
Assessment tasks
- In Class Test
- Individual Assignment
- Group assignment
PG - Critical, Analytical and Integrative Thinking
Our postgraduates will be capable of utilising and reflecting on prior knowledge and experience, of applying higher level critical thinking skills, and of integrating and synthesising learning and knowledge from a range of sources and environments. A characteristic of this form of thinking is the generation of new, professionally oriented knowledge through personal or group-based critique of practice and theory.
This graduate capability is supported by:
Learning outcomes
- Critically evaluate and assess how investment portfolios are constructed and their performance, using a conceptual framework for, and models that explain the structure, institutions and dynamics of modern investments
- Assess and synthesise the differences between behavioural finance and rational expectations in a global investment environment.
- Critically assess the impact of the ethical, social and environmental responsibilities of organisations on the construction of optimal portfolios and assessing their performance.
- Critically analyse stakeholder relationships involved in the construction of portfolios that create and deliver sustainable value across complex market interrelationships
Assessment tasks
- In Class Test
- Individual Assignment
- Group assignment
PG - Effective Communication
Our postgraduates will be able to communicate effectively and convey their views to different social, cultural, and professional audiences. They will be able to use a variety of technologically supported media to communicate with empathy using a range of written, spoken or visual formats.
This graduate capability is supported by:
Learning outcome
- Assess and synthesise the differences between behavioural finance and rational expectations in a global investment environment.
Assessment task
- Individual Assignment
Changes from Previous Offering
No significant changes from previous offering.
Alignment with MGSM’s mission-driven attributes
Leadership: Develop skills required of leaders with respect to the synthesis of a wide array of economics information in order to make well-informed and financially robust strategic decisions.
Global mindset: Assessment of the implications of global activity and strategic decisions from an entity perspective, across a wide spectrum of stakeholders.
Citizenship: Apply a true and fair view approach to matters of economic policy making and implementation related to business strategies through consideration of the wider stakeholder implications which may arise from such policies and the subsequent business decisions.
Creating sustainable value: Adoption of a forward-looking perspective on the impact of decisions on the financial position and performance of the entity.
Attendance Policy (MGSM)
The interactive environment of the classroom is central to the MGSM experience. Students are required to attend the full duration of all classes for the units in which they are enrolled. We recognise that exceptional circumstances may occur, such as unavoidable travel on behalf of your organization or the serious illness or injury of you or a close family member.
Special consideration may be given for a maximum of 20% non-attendance for such circumstances as long as lecturers are contacted in advance, and supporting documentation provided, to request exemption from attendance. Failure to abide by these conditions may result in automatic withdrawal, with academic and/or financial penalty. The full Student Attendance Policy is published in the MGSM Student Handbook at https://students.mgsm.edu.au/handbook.
Content Disclaimer
These unit materials and the content of this unit are provided for educational purposes only and no decision should be made based on the material without obtaining independent professional advice relating to the particular circumstances involved.