BUSINESS SCHOOL

Version: 2014 Business School 1

Unit of Study Outline
Unit Code FINC3017
Unit Title Investments and Portfolio Management
Semester 2, 2014
Pre-requisite Units: FINC2011. Though not a pre-requisite, it is strongly advised that you have successfully
completed FINC2012.
Co-requisite Units:
Prohibited Units:
Assumed Knowledge and/or Skills: Basic statistics, calculus and introductory microeconomics.
Unit Coordinator: Dr Andrew Ainsworth
Address: Room 413, The Business School Building(H69), Darlington NSW 2008
Email: andrew.ainsworth@sydney.edu.au Phone: 9036 7992
Consultation Hours: Wed 10-11.
Class Day(s): Wed 11:00-13:00 in PNR Lecture Theatre 2. Wed 15:00-17:00 in Institute Lecture Theatre 1.
Required Text / Resources:
Primary Textbook:
FINC3017 Investments and Portfolio Management, McGraw Hill.
Useful Textbooks:
Bodie, Kane and Marcus (2011) Investments, 10th Edition, McGraw Hill.
Brailsford, Heaney and Bilson (2011) Investments: Concepts and Applications, 4th
Edition, Cengage Learning.
This unit of study outline MUST be read in conjunction with
The Business School Unit of Study Common Policy and implementation information that applies to every unit of study offered by the
Business School (http://sydney.edu.au/business/currentstudents/policy). All assessment rules, such as standards used, penalties etc, are
covered.
The Business School Student Administration Manual - for information about all processes such as illness, appeals etc (
http://sydney.edu.au/business/currentstudents/student_information/student_administration_manual) When deciding 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.
The Business School seeks feedback from students and staff in order to continually improve all units offered. For information on previously
collected feedback and innovations made in response to this feedback, please see
http://sydney.edu.au/business/learning/planning_and_quality/feedback/student
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.
BUSINESS SCHOOL
Version: 2014 Business School 2
2. Program Learning Outcomes and Unit Learning Outcomes
The Program Learning Outcomes for this Program are located at
http://sydney.edu.au/business/learning/staff/leadership/program_directors/outcomes
Unit Learning Outcomes
Unit Learning Outcomes Program Learning Outcomes
On the successful completion of the Unit you should be able to:
Apply the fundamentals of investment theory to construct portfolios and
evaluate their performance.
1. Business Knowledge
Interpret current academic research and identify how it guides investment
decision making and
portfolio construction in practice.
2. Critical Thinking
Use Microsoft Excel to solve and analyse investment problems. 3. Business Analysis and
Problem-Solving
Communicate clearly and succinctly in writing. 4. Communication
3. Assessment
Assessment
Name
Individual/
Group
Assessment
Conditions
Program
Learning
Outcomes
Assessed
Length Weight Due Date Closing Date
Report 1 Individual Compulsory 1, 2, 3, 4 1500 15% 08-Sep-2014 22-Sep-2014
Essay Individual Compulsory 1, 2, 3, 4 1500 15% 29-Sep-2014 13-Oct-2014
Report 2 Individual Compulsory 1, 2, 3, 4 1500 15% 27-Oct-2014 10-Nov-2014
Final Exam Individual Compulsory 1, 2, 3, 4 1500 55% Final Exam Period Final Exam Period
Academic Honesty Week 4
For the meaning and operation of this table, see policy information in the box on the front page or click here
Assessment details
Report 1
Task Description
G
You will be required to solve an investment-related problem using Microsoft Excel. The problem will involve
actual financial market data to allow you to apply the theories and tools that are being covered in the unit. You
will need to write a 1500 word report that will be assessed based on your application of the tools and methods
learnt in the course to help you analyse the data provided, how you are able to compare and evaluate
different methods/approaches and the identification of any limitations to the approach you have taken. The
report will also be assessed on the provision of financial and economic reasons that can explain your findings.
Further details will be provided in due course.
Assessment Criteria
G
1. Presentation, communication & style (written)
2. Clarity of expression (incl. accuracy, spelling, grammar, punctuation)
3. Content and range
4. Use of literature/ Knowledge of theory
5. Data/information gathering/processing
6. Conclusions
7. Analysis
8. Problem solving
9. Critical reasoning / critical thinking
BUSINESS SCHOOL
Version: 2014 Business School 3
Feedback - What, when and how feedback will be provided for this assessment
G
Feedback will be provided via written comments through Turnitin approximately 2 weeks after the due date.
The feedback will assist you in understanding where errors were made and how to improve upon those
mistakes in future assessments. A detailed video discussing the solution will be uploaded on Blackboard.
Essay
Task Description
G
You will be required to write a 1500 word essay on an investment issue from the academic finance literature.
You will be required to identify research relevant to a specific investment issue. Your essay will be assessed
based on its structure, your identification of academic evidence to support your argument of the issue, as well
as your ability to relate and apply the academic evidence to finance practice. Further details will be provided in
due course.
Assessment Criteria
G
1. Presentation, communication & style (written)
2. Clarity of expression (incl. accuracy, spelling, grammar, punctuation)
3. Referencing
4. Use of literature/ Knowledge of theory
5. Subject's limitations and boundaries/relation to other frameworks
6. Conclusions
7. Rationale
8. Critical reasoning / critical thinking
9. Synthesis
Feedback - What, when and how feedback will be provided for this assessment
G
Feedback will be provided via written comments through Turnitin approximately 2 weeks after the due date.
The feedback will assist you in understanding where errors were made and how to improve upon those
mistakes in future assessments. A detailed video discussing the solution will be uploaded on Blackboard.
Report 2
Task Description
G
You will be required to solve an investment-related problem using Microsoft Excel. The problem will involve
actual financial market data to allow you to apply the theories and tools that are being covered in the unit. You
will need to write a 1500 word report that will be assessed based on your application of the tools and methods
learnt in the course to help you analyse the data provided, how you are able to compare and evaluate
different methods/approaches and the identification of any limitations to the approach you have taken. The
report will also be assessed on the provision of financial and economic reasons that can explain your findings.
Further details will be provided in due course.
Assessment Criteria
G
1. Presentation, communication & style (written)
2. Clarity of expression (incl. accuracy, spelling, grammar, punctuation)
3. Content and range
4. Use of literature/ Knowledge of theory
5. Data/information gathering/processing
6. Conclusions
7. Analysis
8. Problem solving
9. Critical reasoning / critical thinking
Feedback - What, when and how feedback will be provided for this assessment
G
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Version: 2014 Business School 4
Feedback will be provided via written comments through Turnitin approximately 2 weeks after the due date.
The feedback will assist you in understanding where errors were made and how to improve upon those
mistakes in future assessments. A detailed video discussing the solution will be uploaded on Blackboard.
Final Exam
Task Description
G
The final exam will involve multiplce choice questions, problem solving questiosn and shoter answer
essay-style questions.
Assessment Criteria
G
Assessment Criteria
1. Content and range
2. Use of literature/ Knowledge of theory
3. Subject's limitations and boundaries/relation to other frameworks
4. Analysis
5. Problem solving
6. Rationale
7. Critical reasoning / critical thinking
Feedback - What, when and how feedback will be provided for this assessment
G
An exam review session will be held after the exam period. Details to be provided on Blackboard once dates
and times are confirmed.
4. Other Resources for Students
All lectures and seminars are recorded and will be available within Blackboard for student use. Please note the
Business School does not own the system and cannot guarantee that the system will operate or that every
class will be recorded. Students should ensure they attend and participate in all classes.
Additional readings are available from the FINC3017 webpage at the University Library
http://opac.library.usyd.edu.au/search/r?SEARCH=FINC3017.
Maths in Business
The Business School provides a free series of workshops with student facilitators open to all students interested
in mastering both basic and higher intermediate level mathematics. Workshops will be structured to strengthen
your knowledge of algebra before proceeding to calculus, probability and then progressing to refine your skills
in Excel. Students register for workshops online at:
http://sydney.edu.au/business/learning/students/maths/workshops2 Email all enquiries about the Maths in
Business program to: business.maths@sydney.edu.au
BUSINESS SCHOOL
Version: 2014 Business School 5
5. Unit Schedule
Week Required Reading(s) Lecture/Tutorial Assessments Due
1
28 Jul 2014
Ch. 1 (BKM Ch. 5) Introduction
2
4 Aug 2014
Elton, Gruber, Brown and
Goetzmann (EGBG) Ch. 10
Ch.2 (BKM Ch. 6)
Investment Decisions Under Uncertainty
3
11 Aug 2014
Ch. 3 (BKM Ch. 7) Optimal Portfolios
4
18 Aug 2014
Ch.4 (BKM Ch. 8) Single Index Model
5
25 Aug 2014
Ch. 5 (BKM Ch. 9) Capital Asset Pricing Model
6
1 Sep 2014
Ch. 6(BKM Ch. 10) Alternative Asset Pricing Models
7
8 Sep 2014
Ch. 7(BKM Ch. 11) Market Efficiency I Report 1 (8 Sep)
8
15 Sep 2014
Ch. 8 (BKM Ch. 12) Market Efficiency II
9
22 Sep 2014
Investment Style Essay (29 Sep)
Common week 29 Sep to 5 Oct
10
6 Oct 2014
Ch. 10 (BKM Ch. 24) Performance Evaluation
11
13 Oct 2014
Ch. 9 (BKM Ch.17) Macroeconomic and Industry Analysis
12
20 Oct 2014
Ch. 11 (BKM Ch. 26) Hedge Funds
13
27 Oct 2014
Liquidity & Course Review Report 2 (27 Oct)