Advanced Investments

Subject FNCE40002 (2014)

Note: This is an archived Handbook entry from 2014.

Credit Points: 12.50
Level: 4 (Undergraduate)
Dates & Locations:

This subject is not offered in 2014.
Time Commitment: Contact Hours: Three hours of lectures and seminars per week
Total Time Commitment: Not available
Prerequisites:

Admission into BH-COM and

Subject
Study Period Commencement:
Credit Points:
Semester 1, Semester 2
12.50
Corequisites:

None
Recommended Background Knowledge:

Please refer to Prerequisites and Corequisites.
Non Allowed Subjects:

None
Core Participation Requirements:

For the purposes of considering requests for Reasonable Adjustments under the Disability Standards for Education (Cwth 2005), and Students Experiencing Academic Disadvantage Policy, academic requirements for this subject are articulated in the Subject Description, Subject Objectives, Generic Skills and Assessment Requirements for this entry.

The University is dedicated to provide support to those with special requirements. Further details on the disability support scheme can be found at the Disability Liaison Unit website: http://www.services.unimelb.edu.au/disability/

Contact

jinkmann@unimelb.edu.au

Subject Overview:

This subject examines the principles and techniques of portfolio choice and asset pricing with particular emphasis on the latest research. Topics may include factor pricing models, performance evaluation, event studies, consumption-based asset pricing, dynamic portfolio choice, and behavioural finance.
Learning Outcomes:

On successful completion of this subject students should be able to:
• Explain factor pricing models and apply them to practical problems;
• Evaluate the performance of investment managers;
• Evaluate the impact of corporate events on a firm’s value;
• Explain the intuition behind consumption-based asset pricing;
• Recognise the potential but also the limits of return predictability; and
• Create optimal portfolios for private and institutional investors.
Assessment:

A 3-hour end-of-semester examination (70%), and two assignments of not more than 1500 words (15%) each, with the first assignment due by the end of week 5 of semester, and the second assignment due by the end of week 10 of semester.
Prescribed Texts:

You will be advised of prescribed texts by your lecturer.
Breadth Options:

This subject is not available as a breadth subject.
Fees Information: Subject EFTSL, Level, Discipline & Census Date
Generic Skills:

  • High level of development: written communication; interpretation and analysis; critical thinking.

  • Moderate level of development: collaborative learning; problem solving; team work; application of theory to practice; accessing data and other information from a range of sources.

  • Some level of development: oral communication; statistical reasoning; synthesis of data and other information; evaluation of data and other information; use of computer software.

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