FINAN202-20B (TGA)

Investments 1

15 Points

Edit Header Content
Division of Management
School of Accounting, Finance and Economics

Staff

Edit Staff Content

Convenor(s)

Lecturer(s)

Administrator(s)

: leanne.cooper@waikato.ac.nz
: uwt@waikato.ac.nz
: tiruni.john@waikato.ac.nz

Placement/WIL Coordinator(s)

Tutor(s)

Student Representative(s)

Lab Technician(s)

Librarian(s)

: yilan.chen@waikato.ac.nz

You can contact staff by:

  • Calling +64 7 838 4466 select option 1, then enter the extension.
  • Extensions starting with 4, 5, 9 or 3 can also be direct dialled:
    • For extensions starting with 4: dial +64 7 838 extension.
    • For extensions starting with 5: dial +64 7 858 extension.
    • For extensions starting with 9: dial +64 7 837 extension.
    • For extensions starting with 3: dial +64 7 2620 + the last 3 digits of the extension e.g. 3123 = +64 7 262 0123.
Edit Staff Content

Paper Description

Edit Paper Description Content

This is an introductory course in investments. It covers the fundamental concepts related to investment decision making both from a theoretical and practical perspective. In particular, the course will focus on the major features of different financial assets, description of the equity market; concepts of risk and return, pricing of shares based on the capital asset pricing model, diversification and optimal portfolio formation; valuation and management of securities markets such as bond and equity markets.

Edit Paper Description Content

Paper Structure

Edit Paper Structure Content

This paper will be taught using blended learning techniques with pre-recorded lecture videos, and there will also be a one-hour tutorial each week. Students are strongly encouraged to view all the pre-recorded lectures and attend tutorials. In lectures, students will be taught the fundamental concepts related to investments and the examples of the way they can be used. In tutorials, students will be required to solve a set of conceptual and numerical questions each week.

Edit Paper Structure Content

Learning Outcomes

Edit Learning Outcomes Content

Students who successfully complete the paper should be able to:

  • 1. Illustrate the basic concepts of investments.
    Linked to the following assessments:
  • 2. Explain the major features of different financial asset classes.
    Linked to the following assessments:
  • 3. Understand the difference between primary and secondary markets.
    Linked to the following assessments:
  • 4. Discuss the various types of investment companies and mutual funds and services provided by mutual funds.
    Linked to the following assessments:
  • 5. Compute returns, identify measures of risk and apply the principle of risk-return trade-off.
    Linked to the following assessments:
  • 6. Explain the concept of efficient portfolio diversification, optimal asset allocations and the mechanisms of asset pricing models.
    Linked to the following assessments:
  • 7. Explain the implications of Efficient Diversification.
    Linked to the following assessments:
  • 8. Demonstrate the concepts and valuation models of securities markets such as bond and equity markets.
    Linked to the following assessments:
Edit Learning Outcomes Content
Edit Learning Outcomes Content

Assessment

Edit Assessments Content

The internal assessment for this paper includes six surprise quizzes, two tests, and one group assignment.

Edit Additional Assessment Information Content

Assessment Components

Edit Assessments Content

The internal assessment/exam ratio (as stated in the University Calendar) is 100:0. There is no final exam. The final exam makes up 0% of the overall mark.

The internal assessment/exam ratio (as stated in the University Calendar) is 100:0 or 0:0, whichever is more favourable for the student. The final exam makes up either 0% or 0% of the overall mark.

Component DescriptionDue Date TimePercentage of overall markSubmission MethodCompulsory
1. Tutorial Quizzes
20
  • Hand-in: In Tutorial
  • Online: Submit through Moodle
2. Test 1
20 Aug 2020
6:00 PM
15
  • Online: Submit through Moodle
3. Test 2
24 Sep 2020
6:00 PM
20
4. Final Test
15 Oct 2020
6:00 PM
25
  • Online: Submit through Moodle
5. Group Assignment
20
  • Online: Submit through Moodle
Assessment Total:     100    
Failing to complete a compulsory assessment component of a paper will result in an IC grade
Edit Assessments Content

Required and Recommended Readings

Edit Required Readings Content

Required Readings

Edit Required Readings Content

Bodie, Kane, and Marcus, Essentials of Investments, 11th Edition. McGraw-Hill Education, 2019.

Edit Required Readings Content

Recommended Readings

Edit Recommended Readings Content

Black, F., (1972). Capital market equilibrium with restricted borrowing. Journal of Business. 45, 444–454.

Fama, E.F., French, K.R., (1992). The cross-section of expected stock returns. Journal of Finance 47, 427–465.

Fama, E.F., French, K.R., (1993). Common risk factors in the returns on stocks and bonds. Journal of Financial and Economics 33, 3–56.

Fama, E.F., French, K.R., (1996). Multifactor explanations of asset pricing anomalies. Journal of Finance51, 55–84.

Fama, E.F., MacBeth, J., (1973). Risk, return, and equilibrium: empirical tests. Journal of Political Economics 81, 607–636.

Sharp, W.F., (1964). Capital Asset Prices: A Theory of Market Equilibrium under Conditions of Risk. Journal of Finance 19, 425-442.

Edit Recommended Readings Content

Other Resources

Edit Other Resources Content

Please contact the Paper Convenor or Administrator for further details.

Edit Other Resources Content

Online Support

Edit Online Support Content

All the available resources about this paper will be available in Moodle. The online resources may be updated where necessary.

https://rl.talis.com/3/waikato/lists/BB6C9333-FB4F-9BC6-F548-AF62496B5A75.html

Edit Online Support Content

Workload

Edit Workload Content

There are 150 learning hours for this paper.

The time is devoted to the following activities:

Attend lectures and tutorials

Read teaching materials

Prepare for and sit the class tests and quizzes

Complete one group assignment

Edit Workload Content

Linkages to Other Papers

Edit Linkages Content

Note any linkages to other papers where the linkage is of importance.

Edit Linkages Content

Prerequisite(s)

Prerequisite papers: FINA201 or FINAN101

Corequisite(s)

Equivalent(s)

Restriction(s)

Restricted papers: FINA312, FINA517

Edit Linkages Content