FINAN508-20B (HAM)

Investments and Financial Markets

15 Points

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

Staff

Edit Staff Content

Convenor(s)

Lecturer(s)

Administrator(s)

: denise.martin@waikato.ac.nz

Placement/WIL Coordinator(s)

Tutor(s)

Student Representative(s)

Lab Technician(s)

Librarian(s)

: clive.wilkinson@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 paper introduces theory and practice related to portfolio decisions of individual and institutional investors. Based on the concept of asset pricing, portfolio construction, risk-return tradeoff, it discusses the techniques and implications of security analysis, efficient portfolio diversification and the allocation of assets among different investable assets. The fundamentals of major financial markets and basic time series analysis are introduced.


Edit Paper Description Content

Paper Structure

Edit Paper Structure Content

The paper will be taught through lectures and tutorials and students’ performance will be evaluated by Online Quizzes, Written Reports, Midterm Test and End-of-term Debates.

There will be a series of lecture videos uploaded every week and a weekly live Q&A session with the subject lecturer. Physical Workshops will be available to attend for students starting from week 2 of the semester. These workshops can be joined remotely, and recordings will be made available online.


Edit Paper Structure Content

Learning Outcomes

Edit Learning Outcomes Content

Students who successfully complete the paper should be able to:

  • Explain how investors interact with financial markets.
    Linked to the following assessments:
  • Compute returns identify measures of risk and apply the principle of risk-return tradeoff.
    Linked to the following assessments:
  • Explain the concept of efficient portfolio diversification, optimal asset allocations and the mechanisms of asset pricing models.
    Linked to the following assessments:
  • Explain the implications of market efficient hypothesis.
    Linked to the following assessments:
  • Demonstrate the concepts and valuation models of securities markets such as bond and equity markets.
    Linked to the following assessments:
  • Evaluate performance of investment portfolios.
    Linked to the following assessments:
Edit Learning Outcomes Content
Edit Learning Outcomes Content

Assessment

Edit Assessments Content

To be eligible to pass this paper, students must achieve an overall grade of at least 50% in the whole paper.


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. Online Quizzes
10
  • Online: Submit through Moodle
2. Mid-Term test
18 Aug 2020
3:00 PM
30
  • Online: Submit through Moodle
3. End-of-term debate
26 Oct 2020
3:00 PM
30
  • Online: Moodle Forum Discussion
4. Written Report
21 Aug 2020
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
Edit Assessments Content

Required and Recommended Readings

Edit Required Readings Content

Required Readings

Edit Required Readings Content
Bodie, Kane, and Marcus, Investments, 12th Edition (11th Edition is acceptable). McGraw-Hill Education, 2020.
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 Eco nomics 81, 607–636. Koop, G. (2013) Analysis of Economic Data, 4th Edition, John Wiley & Sons, Ltd.

Sharp, W.F., (1964). Capital Asset Prices: A Theory of Market Equilibrium under Conditions of Risk. Journal of Finance 19, 425442.


Edit Recommended Readings Content

Online Support

Edit Online Support Content

Moodle is the official communication platform for this paper. All relevant materials and documents will be uploaded to Moodle.

Announcements will be posted on Moodle from time to time to inform you of important notices, updates and other development pertaining to this paper. It is your responsibility to check these Announcements and updates via Moodle regularly, as ignorance of these is NOT a valid excuse.


Edit Online Support Content

Workload

Edit Workload Content

The course has 48 (4 X 12) contact hours (online lectures, Q&A Sessions and tutorials/workshops). The rest of the 200 hours expected workload in this 15 point paper can be distributed as follows: 20 hours to prepare for the online quizzes, 30 hours to complete the written report, 42 hours to prepare for the Midterm Test and 60 hours to prepare for the End-of-term Debate.


Edit Workload Content

Linkages to Other Papers

Edit Linkages Content
A required paper for the Master of Applied Finance qualification.
Edit Linkages Content

Prerequisite(s)

Acceptance into the Master of Applied Finance programme.

Corequisite(s)

Equivalent(s)

Restriction(s)

Edit Linkages Content