BUSINESS SCHOOL

Unit of Study Outline

Unit code FINC3017 Unit title Investments and Portfolio Management Semester 1, 2012
Unit Coordinator: Dr Andrew Ainsworth Phone: 9036 7992 Email: andrew.ainsworth@sydney.edu.au Office: Room 408, Level 4, Economics & Business Building Consultation times: Wednesday 10-11

Head Tutor: Miss Evelyn Lai Email: evelyn.lai@sydney.edu.au

Lecture Details Stream 1 Wednesday 11-1 Venue: Merewether Lecture Theatre 2 Stream 2 Wednesday 3-5 Venue: Institute Lecture Theatre 1 Pre-requisite unit: FINC2011 Corporate Finance I Assumed knowledge and skills: Basic statistics, calculus and introductory microeconomics

This Guide to Unit Learning Content and Assessment MUST be read in conjunction with the Guide to Business School Student Administration Manual (sydney.edu.au/business/currentstudents/student_information/student_administration_manual) and University Policies on Academic Honesty, Special Consideration, and all applicable policies that apply to every unit of study offered by the Business School. In determining applications and appeals relating to these matters it will be assumed that every student has taken the time to familiarise themselves with these key policies and procedures.

Version: 2012 Business School

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1. Unit of study information This unit is designed to provide a comprehensive analytical approach to the modern theory of investments. Topics covered include: mean-variance analysis; Markowitz type portfolio analysis; portfolio construction; asset pricing theories; market efficiency and anomalies; hedge funds; investment fund performance evaluation. Although analytical aspects of investments theory are stressed, there is also an equal amount of coverage on the practical aspects of portfolio management. Current research on investments is emphasised in the course. 2. Learning aims The aims of this unit of study are to: 1. Provide an understanding of the fundamentals of investment theory and to apply this knowledge to portfolio construction and evaluation. 2. Bring students up to date with current academic research and how it guides investment decision making and portfolio construction in practice. 3. Allow students to gain experience at using Microsoft Excel to solve and analyse investment problems. 3. Learning outcomes and links to Program Learning Outcomes Upon completion of this unit, you should be able to: Intended Learning Outcome
Students in this unit are expected to develop and demonstrate the following learning outcomes. Students are expected to:

Relevant program learning outcome/s

The Unit of Study Learning Outcomes relate to the following BCom Program Learning Outcomes (PLOs)

Links to Learning and Teaching methods

The main learning activities through which students will practice and develop their knowledge, skills and attributes

Understand how investment theory can be applied in practice

Identify limitations of investment theory

Read and understand current research in the area of investments Express opinions and insights into investments succinctly in writing

Analyse and solve investment problems using Excel

Be open to new ways of thinking and appreciate the importance of intellectual curiosity and reflection as the foundation for continuous learning. Critically evaluate underlying theories, concepts, assumptions, limitations and arguments in disciplinary fields of study Conduct research using archives, libraries, the web and other sources of information Develop coherent arguments when recommending solutions and critically evaluating theories in major fields of study Identify, define and analyse problems and recommend creative solutions within real-world constraints

Lecture, Tutorial and Reports

Lectures, Tutorials and Essay

Lectures, Tutorials, Essay and Reports Essay and Reports

Reports

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4. Assessment Assessment items Report 1 Report 2 Essay Report 3 Final exam Academic honesty module Penalties for late assessments Students will be penalised at a rate of 10 percent of the available mark per day for assessments received after the due time and date. For example, the awarded grade will be reduced to zero if the assessment is handed in more than 9 days after the due date. Assessment details Reports Each of the three reports will involve utilising Excel to solve an investment-related problem. You will be required to submit a 1000 word report discussing your results. Written component of reports need to be submitted through Turnitin via Blackboard. Excel spreadsheets need to be submitted via Blackboard. Essay You will be required to discuss and analyse an investment anomaly that has been identified in the academic finance literature. Maximum 1000 words. Essays need to be submitted through Turnitin via Blackboard. Final Exam 3 hour duration covering entire course. More details in Week 13. 5. Resources Primary Text: Brailsford, Heaney and Bilson, Investments: Concepts and Applications, 4th edition. Additional useful text: Bodie, Kane and Marcus, Investments, 9th edition. Required reading from journal articles will be noted in the lecture notes and available from the FINC3017 website on library (search for FINC3017 at http://opac.library.usyd.edu.au/search/r) Information on relevant current issues will also be posted on Blackboard. 6. Specific Improvements made in response to previous feedback FINC3017 has undergone significant revisions in terms of content and assessments from previous years. Word length 1000 1000 1000 1000 3 hours N/A Weight 12.5% 12.5% 12.5% 12.5% 50% 0% Due Date 6th April 27th April 18th May 1st June Exam Period Wk 4

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7. Unit schedule Week Date Lecture content Materials Assessments Due

1 2 3 4 5

5 Mar 12 Mar 19 Mar 26 Mar 2 Apr

Introduction Investment Decisions Under Uncertainty Efficient Portfolio Selection Capital Asset Pricing Model Alternative Asset Pricing Models

BHB Ch. 1, 19.2-19.3 EGBG Ch. 10 BHB Ch.7 BHB Ch. 7 BHB Ch. 8 BHB Ch.9 Report 1 6th April

Common week 6 to 13 April 6 7 8 9 10 11 12 13 14 16 Apr Market Efficiency BHB Ch. 10 Report 2 27th April

No lecture or tutorials - ANZAC Day Public Holiday (25 April) 30 Apr 7 May 14 May 21 May 28 May 4 Jun Investment Style Performance Evaluation Managing Investment Risk I Managing Investment Risk II Hedge Funds Liquidity & Course Review StuVac 11 to 15 June BHB Ch. 20 BHB Ch. 15, 16 BHB Ch. 15, 16 BKM Ch. 26

Essay 18th May

Report 3 1st June