FINAN202-22B (HAM)

Investments 1

15 Points

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Division of Management
School of Accounting, Finance and Economics

Staff

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Convenor(s)

Greg Hou

Greg Hou
9402
MSB.3.25
See Moodle
greg.hou@waikato.ac.nz

Lecturer(s)

Administrator(s)

: denise.martin@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:
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Paper Description

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This paper introduces fundamental concepts related to the portfolio decisions of individual and institutional investors. Based on the concept of risk-return trade-off, it discusses the fundamental techniques and implications of asset pricing models, efficient portfolio diversification with respect to optimal allocation of assets among different securities, and market efficiency hypotheses. A simulation of portfolio strategies in a trading lab context is introduced.
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Paper Structure

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The main activities of this paper include:

1. On-campus and Zoom lectures

2. On-campus and Zoom tutorials

3. Group assignment

4. Trading lab sessions

5. Online quiz and tests

6. Student consultation

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Learning Outcomes

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Students who successfully complete the paper should be able to:

  • 1. Illustrate the basic concepts of investments and explicate the fundamental elements of investment processes. [LO1]
    Linked to the following assessments:
  • 2. Compute expected return, identify measures of risk and apply the principle of risk-return trade-off. [LO2]
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  • 3. Explain the concept of efficient portfolio diversification, optimize the allocation of funds in risky assets and estimate return and risk features of complete portfolio. [LO3]
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  • 4. Forecast expected return of a security using the well-established asset pricing model. [LO4]
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  • 5. Explain the implications of efficient market hypothesis. [LO5]
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  • 6. Simulate multiple portfolio strategies and analyze performance using the trading lab based facilities. And students are able to collect financial data in the trading lab. [LO6]
    Linked to the following assessments:
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Assessment

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Internal assessments are by the components as listed below. Note there is no examination for this paper.
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Assessment Components

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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. On-line Quiz
12 Aug 2022
6:00 PM
20
  • Online: Submit through Moodle
2. Test 1
16 Sep 2022
2:00 PM
25
  • Online: Submit through Moodle
3. Test 2
21 Oct 2022
2:00 PM
25
  • Online: Submit through Moodle
4. Group Assignment - Portfolio Strategy Simulation
6 Nov 2022
5:00 PM
30
  • Online: Submit through Moodle
Assessment Total:     100    
Failing to complete a compulsory assessment component of a paper will result in an IC grade
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Required and Recommended Readings

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Required Readings

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There is no required textbook for this paper. But there is a textbook highly recommended: Bodie, Kane, and Marcus, Essentials of Investments, 11th ed., McGraw-Hill Education, 2019.

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Recommended Readings

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For recommended textbook and readings and useful websites and databases, please refer to Waikato Reading List of this paper (https://rl.talis.com/3/waikato/lists/F29F8E5A-BD7C-4DE8-5F81-ED9A37147446.html?lang=en-US).

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Other Resources

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Please contact the Paper Convenor or Administrator for further details.
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Online Support

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

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There are 150 learning hours for this paper. The time is devoted to the following activities:

Attend lectures

Participate tutorial activities

Attend trading lab sessions

Read teaching materials

Prepare for and sit the quiz and tests

Complete group assignment

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Linkages to Other Papers

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Note any linkages to other papers where the linkage is of importance.
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Prerequisite(s)

Prerequisite papers: FINA201 or FINAN101

Corequisite(s)

Equivalent(s)

Restriction(s)

Restricted papers: FINA312, FINA517

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