FINC3017: Semester 2, 2021

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Units FINC3017 Semester 2 2021 [Normal day]

Unit of study_

FINC3017: Investments and Portfolio Management

Semester 2, 2021 [Normal day] - Remote

Overview

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 and 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.

Unit details and rules

Unit code	FINC3017
Academic unit	Finance
Credit points	6
Prohibitions ?	None
Prerequisites ?	FINC2012
Corequisites ?	None
Assumed knowledge ?	Introductory statistics, calculus and microeconomics
Available to study abroad and exchange students	Yes

Teaching staff

Coordinator	Danika Wright, danika.wright@sydney.edu.au

Type	Description	Weight	Due	Length
Final exam (Record+)	Final online exam Online exam	40%	Formal exam period	1.5 hours
Outcomes assessed:
Assignment	Assignment 1 Written report	30%	Week 06	TBA - see Canvas
Outcomes assessed:
Assignment	Assignment 2 Written report	30%	Week 12	TBA - see Canvas
Outcomes assessed:
= Type B final exam ?

Assessment summary

Assignments: Assignments are to be completed individually and will require you to prepare a report that contains responses to a combination of written and numerical problems drawn from real-world application of the topics studied in class. You will be assessed on your technical application to quantitative questions as well as your critical discussion of key issues.
Final online exam: The final exam will cover the topics studied throughout the semester. There will be a mix of quantitative and conceptual questions.
Further details on all assessments will be provided on Canvas

Assessment criteria

The University awards common result grades, set out in the Coursework Policy 2014 (Schedule 1).

As a general guide, a high distinction indicates work of an exceptional standard, a distinction a very high standard, a credit a good standard, and a pass an acceptable standard.

Result name	Mark range	Description
High distinction	85 - 100	Awarded when you demonstrate the learning outcomes for the unit at an exceptional standard, as defined by grade descriptors or exemplars outlined by your faculty or school.
Distinction	75 - 84	Awarded when you demonstrate the learning outcomes for the unit at a very high standard, as defined by grade descriptors or exemplars outlined by your faculty or school.
Credit	65 - 74	Awarded when you demonstrate the learning outcomes for the unit at a good standard, as defined by grade descriptors or exemplars outlined by your faculty or school.
Pass	50 - 64	Awarded when you demonstrate the learning outcomes for the unit at an acceptable standard, as defined by grade descriptors or exemplars outlined by your faculty or school.
Fail	0 - 49	When you don’t meet the learning outcomes of the unit to a satisfactory standard.

For more information see sydney.edu.au/students/guide-to-grades.

For more information see guide to grades.

Late submission

In accordance with University policy, these penalties apply when written work is submitted after 11:59pm on the due date:

Deduction of 5% of the maximum mark for each calendar day after the due date.
After ten calendar days late, a mark of zero will be awarded.

Academic integrity

The Current Student website provides information on academic integrity and the resources available to all students. The University expects students and staff to act ethically and honestly and will treat all allegations of academic integrity breaches seriously.

We use similarity detection software to detect potential instances of plagiarism or other forms of academic integrity breach. If such matches indicate evidence of plagiarism or other forms of academic integrity breaches, your teacher is required to report your work for further investigation.

You may only use artificial intelligence and writing assistance tools in assessment tasks if you are permitted to by your unit coordinator, and if you do use them, you must also acknowledge this in your work, either in a footnote or an acknowledgement section.

Studiosity is permitted for postgraduate units unless otherwise indicated by the unit coordinator. The use of this service must be acknowledged in your submission.

Learning support

Simple extensions

If you encounter a problem submitting your work on time, you may be able to apply for an extension of five calendar days through a simple extension.  The application process will be different depending on the type of assessment and extensions cannot be granted for some assessment types like exams.

Special consideration

If exceptional circumstances mean you can’t complete an assessment, you need consideration for a longer period of time, or if you have essential commitments which impact your performance in an assessment, you may be eligible for special consideration or special arrangements.

Special consideration applications will not be affected by a simple extension application.

Using AI responsibly

Co-created with students, AI in Education includes lots of helpful examples of how students use generative AI tools to support their learning. It explains how generative AI works, the different tools available and how to use them responsibly and productively.

Weekly schedule

WK	Topic	Learning activity
Week 01	Introduction to investments and asset allocation	Lecture (2 hr)
Week 02	Investment decisions under uncertainty	Lecture and tutorial (3 hr)
Week 03	Optimal portfolios	Lecture and tutorial (3 hr)
Week 04	Single Index Model	Lecture and tutorial (3 hr)
Week 05	Capital Asset Pricing Model	Lecture and tutorial (3 hr)
Week 06	Asset pricing models	Lecture and tutorial (3 hr)
Week 07	Market efficiency and anomalies	Lecture and tutorial (3 hr)
Week 08	Portfolio risk management	Lecture and tutorial (3 hr)
Week 09	Investment style	Lecture and tutorial (3 hr)
Week 10	Performance evaluation	Lecture and tutorial (3 hr)
Week 11	Hedge funds	Lecture and tutorial (3 hr)
Week 12	Illiquidity	Lecture and tutorial (3 hr)
Week 13	Current trends in investments and portfolio management	Lecture and tutorial (3 hr)

Study commitment

Typically, there is a minimum expectation of 1.5-2 hours of student effort per week per credit point for units of study offered over a full semester. For a 6 credit point unit, this equates to roughly 120-150 hours of student effort in total.

Required readings

See Canvas for weekly required reading list.

Prescribed textbook: Bodie, Z., Kane, A. and Marcus, A.J. (2018), Investments, 11th edition,McGraw Hill, ISBN 9781259277177 (denoted BKM on the reading list).

Chapters from the textbook will be supplemented by journal articles and other online materials. Journal articles can be accessed through the Library.

Learning outcomes

Learning outcomes are what students know, understand and are able to do on completion of a unit of study. They are aligned with the University's graduate qualities and are assessed as part of the curriculum.

Outcomes
Graduate qualities

At the completion of this unit, you should be able to:

LO1. apply the fundamentals of investment theory to construct portfolios and evaluate their performance
LO2. interpret current academic research and identify how it guides investment decision making and portfolio construction in practice
LO3. use Microsoft Excel to solve and analyse investment problems
LO4. communicate clearly and succinctly in writing
LO5. critique asset pricing models and portfolio management strategies

Graduate qualities

The graduate qualities are the qualities and skills that all University of Sydney graduates must demonstrate on successful completion of an award course. As a future Sydney graduate, the set of qualities have been designed to equip you for the contemporary world.

GQ1	Depth of disciplinary expertise Deep disciplinary expertise is the ability to integrate and rigorously apply knowledge, understanding and skills of a recognised discipline defined by scholarly activity, as well as familiarity with evolving practice of the discipline.
GQ2	Critical thinking and problem solving Critical thinking and problem solving are the questioning of ideas, evidence and assumptions in order to propose and evaluate hypotheses or alternative arguments before formulating a conclusion or a solution to an identified problem.
GQ3	Oral and written communication Effective communication, in both oral and written form, is the clear exchange of meaning in a manner that is appropriate to audience and context.
GQ4	Information and digital literacy Information and digital literacy is the ability to locate, interpret, evaluate, manage, adapt, integrate, create and convey information using appropriate resources, tools and strategies.
GQ5	Inventiveness Generating novel ideas and solutions.
GQ6	Cultural competence Cultural Competence is the ability to actively, ethically, respectfully, and successfully engage across and between cultures. In the Australian context, this includes and celebrates Aboriginal and Torres Strait Islander cultures, knowledge systems, and a mature understanding of contemporary issues.
GQ7	Interdisciplinary effectiveness Interdisciplinary effectiveness is the integration and synthesis of multiple viewpoints and practices, working effectively across disciplinary boundaries.
GQ8	Integrated professional, ethical, and personal identity An integrated professional, ethical and personal identity is understanding the interaction between one’s personal and professional selves in an ethical context.
GQ9	Influence Engaging others in a process, idea or vision.

Outcome map

Learning outcomes	Graduate qualities
Learning outcomes

Responding to student feedback

This section outlines changes made to this unit following staff and student reviews.

The number of assessment tasks has been reduced to two assignments and one final exam.

Disclaimer

The University reserves the right to amend units of study or no longer offer certain units, including where there are low enrolment numbers.

To help you understand common terms that we use at the University, we offer an online glossary.

Current students

Overview

Overview

Unit details and rules

Teaching staff

Assessment

Assessment

Assessment summary

Assessment criteria

Late submission

Academic integrity

Learning support

Learning support

Simple extensions

Special consideration

Using AI responsibly

Weekly schedule

Weekly schedule

Study commitment

Required readings

Learning outcomes

Learning outcomes

Graduate qualities

Outcome map

Responding to student feedback

Responding to student feedback

Disclaimer

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