FIN*3000 - Investments

Course Description

This course studies the economic literature regarding the determination of security prices and the operation of the stock market.

Learning Outcomes

By the end of the course, the learner should be able to:

1. Articulate evaluations and the implications of utilizing economic and finance theories and analysis, in a manner appropriate to audience needs;
2. Understand Markowitz portfolio optimization, the capital asset pricing model, and arbitrage pricing theory;
3. Calculate the valuation of a common stock;
4. Calculate the investment performance of a portfolio and evaluate it;
5. Apply and critically evaluate economic and finance theories;
6. Locate, analyse, evaluate and effectively use information from and in a range of mediums and formats;.
7. Understand financial mathematics;
8. Understand and be able to discuss results calculated with basic statistical techniques including expectation operators, standard deviation, coefficient of variation, covariance, multiple linear regression analysis;
9. Understand efficient markets and developments in behavioural finance, investor preferences utility and indifference curves;
10. Understand the historical background of firms selected by the group as well as its industry background;
11. Understand the regulatory and societal context in which the chosen companies operate. Because students are free to choose international firms, students learn about their backgrounds in other countries. They learn how to explain these issues in their portfolio reports;
12. Understand and use Markowitz optimization for minimizing portfolio risk;
13. Understand and use the CAPM and the APT.

Course Topics

• Institutional Background
• Risk and Portfolio Mathematics
• Risk Aversion and Capital Allocation
• Selecting a Portfolio
• Asset Pricing 1: The Capital Asset Pricing Model
• Asset Pricing 2: Index Models and the Arbitrage Pricing Theory
• Is the Stock Market Inefficient?
• Empirical Evidence
• Fundamental Analysis
• Technical Analysis
• Investment Performance Evaluation

Assessment

Note: A passing mark on the final examination is require to pass this course. If you receive less than 50% on the final examination, your final examination mark will constitute your final grade in the course.

Note:

Additional Technical Requirements

This course will use the Respondus tool to invigilate one or more exams. In order to use Respondus LockDown Browser and Monitor, you must meet the following technical requirements:

1. Operating Systems: Windows 10, 8, 7; Mac OS X 10.10 or higher.

2. Memory: Windows 2 GB RAM; Mac 512 MB RAM.

3. For Mac users: Safari must function properly on the computer.

4. Mac users must have Adobe Flash Player installed to Safari, even if a different browser is normally used.

5. Functioning webcam and microphone. The webcam and microphone can be built into your computer or can be the type that plugs in with a USB cable. (You will be required to do an environment scan of your room, so please ensure you can move your computer, laptop or webcam for this scan.)

6. A broadband Internet connection. It is recommended that you access the Internet via a wired connection.