Investments

This subject has the following teaching availabilities in 2016:

This subject is only available to students admitted to MC-BA, MC-BAPT, or students with permission of the MBA course coordinator

For the purposes of considering request for Reasonable Adjustments under the Disability Standards for Education (Cwth 2005), and Student Support and Engagement Policy, academic requirements for this subject are articulated in the Subject Overview, Learning Outcomes, Assessment and Generic Skills sections of this entry.

It is University policy to take all reasonable steps to minimise the impact of disability upon academic study, and reasonable adjustments will be made to enhance a student's participation in the University's programs. Students who feel their disability may impact on meeting the requirements of this subject are encouraged to discuss this matter with a Faculty Student Adviser and Student Equity and Disability Support: http://services.unimelb.edu.au/disability

Investments is designed to provide you with the tools of modern finance for devising and evaluating financial portfolios and to make better investment choices. To this end we discuss and develop valuation techniques of financial instruments and working knowledge of portfolio management, pricing and hedging with options on individual stocks and indexes, forwards and futures contracts, monetary policy and how the conduct of monetary policy affects investment performance, devising investment strategies exploiting market inefficiencies.

On completion of this subject, students should be able to:

• Value important classes of financial assets such as common stocks, fixed-income securities, and derivative securities.
• Build a diversified portfolio and assess portfolio performance.
• Use financial derivatives as hedging instruments in portfolio creation and management.
• Understand how money is created, how monetary policy is implemented and the effect of central banks decisions’ on the performance of their investment portfolios.
• Devise investment strategies robust to financial crises and also those that exploit certain inefficiencies of financial markets.

• Homework sets (40%)
  • Throughout subject
• Final examination (60%)
  • Hurdle requirement
  • 3 hours
  • End of subject

This subject is not available as a breadth subject.

This subject is only available to students admitted to MC-BA, MC-BAPT, or students with permission of the MBA course coordinator