Students

AFIN875 – Investing in Emerging Markets

2017 – S2 Day

General Information

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Unit convenor and teaching staff Unit convenor and teaching staff
Mehdi Sadeghi
Refer to iLearn
Angela Chow
Credit points Credit points
4
Prerequisites Prerequisites
ACST603 or AFIN818
Corequisites Corequisites
Co-badged status Co-badged status
Unit description Unit description
This unit begins with an examination of the characteristics of emerging financial markets. The unit then has two parts. The focus of the first part is on portfolio investment management. The focus of the second part is on direct investment in new projects. The geographic focus is in Asian countries.

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:

  • Learn about the characteristics of emerging financial markets: asset allocation, volatility and linkages in emerging capital markets.
  • Explore the menu of investment opportunities, such as portfolio investment, FDI, and investment in a project in emerging markets.
  • Analyse systematic risk and alternative CAPM for emerging financial markets.
  • Review financial liberalisation and contagious effects of financial crisis in emerging markets .
  • Work productively in a group to undertake a project analysis

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 marks (not including the final exam mark) will not be addressed.

Assessment criteria for all assessment tasks will be provided on the unit iLearn site.

Self-Assessment test.

 

A self-assessment template will be posted on ilearn in week three to provide students with feedback before the census date.

 

 

Assessment Tasks

Name Weighting Hurdle Due
In-Class Test 25% No Week 7
Case Study 20% No Throughout the semester
Final Exam 55% No Final Exam Period

In-Class Test

Due: Week 7
Weighting: 25%

The 90-minute class test is designed to help you consolidate your understanding of core concepts through Multiple Choice questions. This test will cover topics from the first 6 weeks of lectures and the associated reading materials. You are expected to present yourself for the test in Lecture 7 at the enrolled time and place of your normal lecture. No extensions will be granted. Students who have not attended for the class test on due date will be awarded a mark of 0 for the task, except for cases in which an application for disruptions to studies is made and approved.


On successful completion you will be able to:
  • Learn about the characteristics of emerging financial markets: asset allocation, volatility and linkages in emerging capital markets.
  • Explore the menu of investment opportunities, such as portfolio investment, FDI, and investment in a project in emerging markets.
  • Analyse systematic risk and alternative CAPM for emerging financial markets.
  • Review financial liberalisation and contagious effects of financial crisis in emerging markets .
  • Work productively in a group to undertake a project analysis

Case Study

Due: Throughout the semester
Weighting: 20%

Case study is a weekly group presentation exercise. This study provide students with an opportunity to systematically look at project financing or another topical issues in emerging markets by collecting data, analysing information, and report the findings. Each student’s group is expected to present a case before the class and submit a hard copy of their written report after their presentation. A soft copy of their report must also be uploaded on ilearn, immediately before or after their presentation. A list of cases with a short description will be distributed to the class in the first week and students can select the one that they prefer (on the first come first serve basis).

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 disruption of studies is made and approved. No submission will be accepted after solutions have been posted.

50% of the marks is allocated to individual students’ performance during their presentation before the class.


On successful completion you will be able to:
  • Learn about the characteristics of emerging financial markets: asset allocation, volatility and linkages in emerging capital markets.
  • Analyse systematic risk and alternative CAPM for emerging financial markets.
  • Work productively in a group to undertake a project analysis

Final Exam

Due: Final Exam Period
Weighting: 55%

The final examination for this unit will be held during the University Examination Period. The exam will cover all of the topics in the syllabus, and will be a closed book exam. Students who have not sat for the final exam will be awarded a mark of 0 for the task, except for cases in which an application for special consideration is made and approved.

You are permitted ONE A4 page of paper containing reference material printed on both sides. The material may be handwritten or typed. The page will not be returned to you at the end of the final examination.

Duration of the exam will be for 2 hours.


On successful completion you will be able to:
  • Learn about the characteristics of emerging financial markets: asset allocation, volatility and linkages in emerging capital markets.
  • Explore the menu of investment opportunities, such as portfolio investment, FDI, and investment in a project in emerging markets.
  • Analyse systematic risk and alternative CAPM for emerging financial markets.
  • Review financial liberalisation and contagious effects of financial crisis in emerging markets .
  • Work productively in a group to undertake a project analysis

Delivery and Resources

Classes

 

•  Each week there will be a two hour lecture, and one hour group presentation by students.

•  The timetable for classes can be found of the University web site at:

 

http://www.timetables.mq.edu.au/

Required and Recommended Texts and/or Materials Prescribed

•  Reference books include, The Spread of Financial Sophistication Through Emerging Markets Worldwide by John Kensinger, and Project Finance in Asia Pacific by Richard Tinsley.

•  All other readings will be available on ilearn, or in the library.

Technology Used and Required

•  During the semester you need to access website of several emerging markets stock exchanges, and bond markets in order to do your Major

•  Assignment. You may also need to access website of relevant corporations and financial institutions that are involved in project finance case study.

 

•  Ability to work with softwares for time series analysis, and portfolio management are desirable requirements for doing your assignment and case study more professionally.

•  A non-programmable calculator may be used in any examination in this unit.

 

Unit Web Page

 

Course material is available on the learning management system (iLearn)

Unit Schedule

 

Date

 

Week

 

Lecture Topic

 

Other Readings

 

Text

Readings

 

Case

Study

 

31st  July

 

 

 

 

 

1

 

Introduction

 

Lecture Notes

 

 

 

Week 1

ilearn readings

 

Allocation in the first week

 

7th

 

Aug

 

2

 

Investing in Public

Equities

 

Lecture Notes

 

Week 2

ilearn readings

 

Case study

 

14th

 

3

 

Investing in

Private Equities

 

Lecture Notes

 

Week 3

ilearn readings

Case study

 

21th

 

4

 

Investing in Direct

Debts and Bonds

 

Lecture Notes

 

Week 4

ilearn readings

Case study

 

28th

 

5

 

Measuring Return and Risk, Diversification

 

Lecture Notes, 

 

Week 5

ilearn 

 

4th  

 

Sept

 

6

 

Asset Pricing

Models in EMs

 

Lecture Notes, 

 

Week 6

ilearn readings

Case study

 

 

 

 

 

11th

 

 

 

 

In-class Test

 

18th Sept-1st Oct

 

Mid-Semester

Break

 

2rd Oct

 

8

 

FDI

 

Lecture Notes

 

Week 8

ilearn readings

Case study

 

9th

 

Oct

 

9

 

Project Finance

 

Lecture Notes, 

 

Week 9

ilearn readings

Case study

 

16th

 

10

 

Liberalisation & Integration

 

Lecture Notes,

 

 

Week 10

ilearn readings

 

23rd

 

11

 

Financial Crisis

 

Lecture Notes,

 

 

Week 11

ilearn readings

 

 

30th

 

12

 

Contagion & Systemic Risk

 

Lecture Notes, 

 

Week 12

ilearn readings

 

 

6th Nov

 

13

 

Derivatives

 

Lecture Notes, 

 

Week 13

ilearn readings

 

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_2016.html

Grade Appeal Policy http://mq.edu.au/policy/docs/gradeappeal/policy.html

Complaint Management Procedure for Students and Members of the Public http://www.mq.edu.au/policy/docs/complaint_management/procedure.html​

Disruption to Studies Policy (in effect until Dec 4th, 2017): http://www.mq.edu.au/policy/docs/disruption_studies/policy.html

Special Consideration Policy (in effect from Dec 4th, 2017): https://staff.mq.edu.au/work/strategy-planning-and-governance/university-policies-and-procedures/policies/special-consideration

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 exams

Information regarding supplementary exams, including dates, is available at: 

http://www.businessandeconomics.mq.edu.au/current_students/undergraduate/how_do_i/disruption_to_studies

 

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://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

  • Learn about the characteristics of emerging financial markets: asset allocation, volatility and linkages in emerging capital markets.
  • Explore the menu of investment opportunities, such as portfolio investment, FDI, and investment in a project in emerging markets.
  • Review financial liberalisation and contagious effects of financial crisis in emerging markets .
  • Work productively in a group to undertake a project analysis

Assessment tasks

  • In-Class Test
  • Case Study
  • Final Exam

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 outcome

  • Learn about the characteristics of emerging financial markets: asset allocation, volatility and linkages in emerging capital markets.

Assessment tasks

  • In-Class Test
  • Case Study
  • Final Exam

PG - Research and Problem Solving Capability

Our postgraduates will be capable of systematic enquiry; able to use research skills to create new knowledge that can be applied to real world issues, or contribute to a field of study or practice to enhance society. They will be capable of creative questioning, problem finding and problem solving.

This graduate capability is supported by:

Learning outcomes

  • Explore the menu of investment opportunities, such as portfolio investment, FDI, and investment in a project in emerging markets.
  • Analyse systematic risk and alternative CAPM for emerging financial markets.
  • Work productively in a group to undertake a project analysis

Assessment tasks

  • In-Class Test
  • Case Study
  • Final Exam