Units
Investments
Unit code: EFB335
Credit points: 12
Information about fees and unit costs
This unit advances the students’ understanding of how investment decisions are made, what securities to invest in, how they fit in a portfolio, what is the impact of transaction costs, the risks associated with investing and performance evaluation of the investment process. This unit aims to provide students with an intermediate to advanced level of investment decision making skills which are essential for finance students in their personal and professional lives.
Availability
| Semester | Available |
|---|---|
| 2013 Semester 1 | Yes |
| 2013 Semester 2 | Yes |
Sample subject outline - Semester 1 2013
Note: Subject outlines often change before the semester begins. Below is a sample outline.
Rationale
Investments finance focuses on financial decision-making from the perspective of investors. It analyses the manner in which entities manage the risk return trade-off by allocating assets to investment portfolios. EFB335 Investments extends the building blocks provided in year two finance subjects by providing detailed discussions and in-depth analysis of alternative investment choices faced by entities.
Aims
With financial markets, institutions and instruments becoming increasingly more complex, a detailed understanding of modern finance theory and its empirical evidence is indispensable. Without it, success in asset management, financial regulation and innovation would be left to chance. Accordingly, the goals and objectives of this course are to provide you with a sound platform for investing and to delineate the differences in an unplanned and planned approach to investing.
Objectives
Course Learning Goals (Undergraduate)
The QUT Business School has established the Assurance of Learning (AOL) Goals to meet contemporary industry needs and standards. Achieving these learning outcomes will assist you to meet the desired graduate outcomes set at QUT - aligned with other internationally renowned business schools. Students will develop the following capabilities relevant to a contemporary global and sustainable business environment:
Have knowledge and skills pertinent to a particular discipline (KS)
1.1 Integrate and apply disciplinary theory and skills to practical situations
1.2 Incorporate the use of technology appropriate to the discipline and context
Be critical thinkers and effective problem solvers (CTA)
2.1 Identify, research and critically analyse information relevant to a business problem or issue, be able to synthesise that information in order to evaluate potential solutions, make recommendations or otherwise effectively address the problem or issue
Be professional communicators in an intercultural context (PC)
3.1 Communicate effectively through written tasks appropriate to varied contexts and audiences
3.2 Communicate effectively through professional oral presentations appropriate to varied contexts and audiences
Be able to work effectively in a Team Environment (TW)
4.1 Demonstrate effective team skills in order to contribute appropriately to the production of a group output
Have a Social and Ethical Understanding (SEU)
5.1 Apply ethical reasoning, standards or codes of practice relevant to the discipline and make decisions that are informed by social and cultural understanding
Objectives
Upon completion of this unit, you should:
1. Have mastered advanced skills of investment analysis
2. Have understood relevant finance theories and the investment concepts which may be applied in a domestic or international setting.
3. Have achieved competency in pricing various financial products.
4. Have applied conceptual understanding of investment strategies and hedging strategies to the portfolio management process..
5. Have integrated knowledge of both economic and financial concepts relevant to the investment process.
6. Be able to communicate research findings that are relevant within an investment environment
The specific course learning goals and unit objectives that apply to this unit are shown in the assessment section of this unit outline.
Content
Major content areas may be described as follows:
Approaches to Teaching and Learning
The approach taken to learning in this course so that you can gain a deeper understanding of investment finance is to put you directly in the position of a portfolio manager. That is, you will participate in a portfolio management assignment known as The Investment. The assignment requires you to design and manage an investment portfolio over a period of up to ten weeks. Using a real investment climate, you will obtain a deeper understanding of the merits and practical limitations of the finance theories. Using current financial data will also allow you to directly experience the unpredictability inherent in today's financial markets.
Assessment
Students will receive feedback in various forms throughout the semester which may include:
Assessment name:
Mid-semester Examination
Description:
A mix of problems and short essay questions. The exam covers the material for weeks 1-5 inclusive.
Length/Duration:1 hour and 30 minutes
Formative or Summative:Formative and Summative
Relates to objectives:
Unit objectives: 1, 2, 3, 4, 5 and AOL goals: KS (1.1), CTA (2.1)
Weight:
25%
Internal or external:
Internal
Group or individual:
Individual
Due date:
Week 7
Assessment name:
Group project
Description:
Teamwork skills, oral presentation, participation, planning and organisation, cognitive and research skills will be assessed.
Length/Duration: 2, 000 word report; 1 oral presentation
Formative or Summative:Summative
Relates to objectives:
Unit objectives: 1, 2, 3, 4, 5 and AOL goals: KS (1.1), (1.2), CTA (2.1), PC (3.1), (3.2), TW (4.1), SEU (5.1)
Weight:
35%
Internal or external:
Internal
Group or individual:
Group
Due date:
During semester
Assessment name:
End of Semester Examination
Description:
A mix of problems and short essay questions. It covers all the materials.
Length/Duration: 1 hour and 30 minutes
Formative or Summative:Summative
Relates to objectives:
Unit objectives: 1, 2, 3, 4, 5 and AOL goals: KS (1.1), CTA 2.1, PC (3.1)
Weight:
40%
Internal or external:
Internal
Group or individual:
Individual
Due date:
Central Exam Period
Academic Honesty
QUT is committed to maintaining high academic standards to protect the value of its qualifications. To assist you in assuring the academic integrity of your assessment you are encouraged to make use of the support materials and services available to help you consider and check your assessment items. Important information about the university's approach to academic integrity of assessment is on your unit Blackboard site.
A breach of academic integrity is regarded as Student Misconduct and can lead to the imposition of penalties.
Resource materials
Recommended Textbook
Reilly, F.K. and Brown, C.B. (2012) Investment Analysis and Portfolio Management 10th edition. South Western Educational Publishing.
Spreadsheet Reference Textbook:
Yip, H. (2005) Spreadsheet Applications to Securities Valuation and Investment Theories Wiley.
Other References:
Elton. E., and Gruber, M., 1995. Modern Portfolio Theory and Investment Analysis, 5th Edition, John Wiley & Sons, Singapore.
Jones, C. , Shamsuddin, A., Naumann, K.,2007, Investment Analysis and Management, 2nd Edition, Wiley.
Fabozzi, F. 2002. Managing Fixed Income Portfolios, Wiley.
Hull, J. 2007. Options Futures and Other Derivatives, 6th Edition, Prentice Hall Solnik, B. and Mcleavey, D. 2004, International Investments, 5th edition, Pearson Addison Wesley.
All lecture slides, additional readings and research articles, tutorial questions and solutions, and other handouts provided during the semester will be available online through the unit's Blackboard site:
Risk assessment statement
Reasonable proficiency in the use of Microsoft Excel is vital. There are no out-of-the-ordinary risks associated with lectures or tutorials in this unit. You should, however, familiarise yourself with evacuation procedures operating in the buildings in which you attend classes and take the time to
view the Emergency video.
Disclaimer - Offer of some units is subject to viability, and information in these Unit Outlines is subject to change prior to commencement of semester.
Last modified: 01-Jun-2012
