Information - Extension Requests / Penalties

Final Exam (50%)

You are expected to present yourself for examination at the time and place designated in the relevant MAFC Timetable at https://www.mq.edu.au/about/about-the-university/faculties-and-departments/business/study-with-us/macquarie-applied-finance-centre/timetables.

Deferral of an examination is not permitted unless an application for Special Consideration is made and approved.

Students who do not attend receive a mark of zero. This penalty does not apply in cases where an application for Special Consideration has been made and approved.

Note: Applications for Special Consideration must be made within 5 (five) business days of the due date and time. 

Refer to MAFC Program Rules at https://mafcstudents.mq.edu.au/ for information on the University’s Special Consideration Policy.

CLASSES

Face-to-Face Teaching: Generally 20 hours.

Timetable: Detailed timetable for classes are on the Centre’s website at www.mafc.mq.edu.au

Consultation Times: 

Students who wish to contact any of the teaching staff may do so through:

• The unit’s iLearn site, in relation to general queries (so that all students may benefit); or 
• Individual consultation with the lecturer by email in the first instance, if necessary.

REQUIRED AND RECOMMENDED TEXTS AND/OR MATERIALS

Suggested Text: Elton, Gruber, Brown & Goetzmann: Modern Portfolio Theory and Investment Analysis, Wiley.

Additional Readings: 

• Additional readings are included in the unit notes and will be placed on iLearn. 
• Students should assume these readings are examinable unless otherwise advised.

Lecture Notes: Available in printed form and electronically via iLearn. 

Pre-course Knowledge: 

The Gateway units of the Graduate Certificate in Finance represent the pre-course knowledge required to successfully study the advanced applied finance units of the Masters of Applied Finance and the Graduate Diploma of Applied Finance. Please refer to the following page for instructions on reviewing the unit guides for the gateway units: http://mafcstudents.mq.edu.au/new-to-mafc/pre-course-materials/

Useful References: 

• Bodie, Kane & Marcus; Investments, McGraw Hill.
• Grinold & Kahn, Active Portfolio Management, McGraw Hill.
• Stewart, Piros & Heisler, Running Money – Professional Portfolio Management

Calculators:

• A financial calculator that can handle time value of money calculations, logs and power functions is required.
• The Hewlett Packard calculator hp17bII+ is recommended.
• In examinations, hand held calculators are permitted. Mobile phones and computers are not permitted.

Assumed Access:

• Access to a computer with word processing and spreadsheet capability is assumed, as is general computer literacy.

TECHNOLOGY USED AND REQUIRED

Unit iLearn Site: 

• Found by logging on to iLearn ilearn.mq.edu.au, then clicking on AFCP8045 Applied Portfolio Management.
• This is where you will find links to forums, downloadable resources and other important pages.
• Forums allow you to communicate with other students and lecturer(s) and may provide supplementary material.
• You are requested to post questions to the forum at least 24 hours prior to the assignment submission date or the examination date. Questions posted after that time may not be answered. Please try to not leave your questions to the last few days.

Important Notice: 

• It is important that you familiarise yourself with iLearn.
• All students should check iLearn regularly (minimum twice a week and prior to all lectures) and look for updates and distribution of materials (including case studies) related to the unit or assessments and, if relevant, participate in forum discussions.

SESSION I. INVESTMENT INDUSTRY OVERVIEW: INVENTIONS AND TRENDS

Topics: 

• A review of Investment theories and techniques: Origins, MPT, MFM and BFT
• Trends and developments occurring in the industry
• An overview of the major players

 

SESSION II. CAPTURING INVESTMENT OPPORTUNITIES: ASSET RETURN PATTERNS AND PORTFOLIO IMPLEMENTATION

Topics: 

• The anomalies and behaviour of security prices
• The Global Volatility Premium
• The equity risk premium
• ESG Investing
• Smart Beta
• Growth in ETFs
• How can we turn ideas into portfolios?
• Case Study One Objectives

 

SESSION III. ASSET ALLOCATION

Topics: 

• A surplus framework
• Modern tactical asset allocation
• Adaptive strategies
• Criticisms of optimisation
• The fundamental law

 

SESSION IV. PROTECTIVE STRATEGIES

Topics: 

• Portfolio construction solutions - protecting the downside
• Financial engineering approaches – buying options, replicating options, portfolio insurance

Case Studies: 

• Case Study One Syndicate Presentations
• Case Study Two Objectives

 

SESSION V. PERFORMANCE EVALUATION

Topics: 

• Review of performance measures
• Multiple factor performance evaluation
• Non symmetrical performance measures

Case Studies and Assignment: 

• Case Study Two Syndicate Presentations
• Assignment Objectives