FINANCE 361 : Modern Investment Theory and Management
Business and Economics
2024 Semester One (1243) (15 POINTS)
Course Prescription
Course Overview
This course offers the financial theory and quantitative analytical tools necessary for understanding how assets are priced and traded in financial markets. The course combines theoretical principles with applied analysis to develop the skills required for making informed investment decisions. Topics covered include portfolio and asset pricing theory, limits to arbitrage, factor models, empirical finance, financial machine learning, and the pricing and risk management of fixed income securities.
Capabilities Developed in this Course
| Capability 3: | Knowledge and Practice |
| Capability 4: | Critical Thinking |
| Capability 5: | Solution Seeking |
| Capability 6: | Communication |
| Capability 7: | Collaboration |
| Capability 8: | Ethics and Professionalism |
Learning Outcomes
- Demonstrate and apply the mathematical principles underlying mean-variance portfolio optimisation. (Capability 3.1, 3.2 and 5.1)
- Differentiate between the concepts of risk that underlie different asset pricing models, including CAPM, APT, and benchmark factor models. (Capability 3.2, 4.1 and 4.2)
- Explain how limits to arbitrage influence the efficiency of financial markets. (Capability 3.2, 4.1 and 4.2)
- Value and manage risk associated with fixed income securities. (Capability 3.2 and 5.1)
- Engage with real world data to assess empirical evidence and solve practical investment problems, and communicate clearly and persuasively the solutions in writing. (Capability 5.1, 5.2 and 6.2)
- Apply teamwork skills and self-management strategies in planning and managing a team-based project. (Capability 7.1 and 8.2)
Assessments
| Assessment Type | Percentage | Classification |
|---|---|---|
| Assignment | 20% | Group & Individual Coursework |
| First Test | 40% | Individual Test |
| Second Test | 40% | Individual Test |
| 3 types | 100% |
| Assessment Type | Learning Outcome Addressed | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | 2 | 3 | 4 | 5 | 6 | |||||
| Assignment | ||||||||||
| First Test | ||||||||||
| Second Test | ||||||||||
Workload Expectations
This course is a standard 15 point course and students are expected to spend 10 hours per week involved in each 15 point course that they are enrolled in.
Delivery Mode
Campus Experience
Attendance is expected at scheduled activities including lectures and workshops. Lectures and workshops will be made available as recordings. Class activities in lectures and workshops, which may include case studies, current event discussions and competitions, will not be recorded. The course will not include live online events. The activities for the course are scheduled as a standard weekly timetable.
Learning Resources
Course materials are made available in a learning and collaboration tool called Canvas which also includes reading lists and lecture recordings (where available).
Please remember that the recording of any class on a personal device requires the permission of the instructor.
Student Feedback
At the end of every semester students will be invited to give feedback on the course and teaching through a tool called SET or Qualtrics. The lecturers and course co-ordinators will consider all feedback and respond with summaries and actions.
Your feedback helps teachers to improve the course and its delivery for future students.
Class Representatives in each class can take feedback to the department and faculty staff-student consultative committees.
We will make incremental changes to the course based on feedback and industry developments.
Academic Integrity
The University of Auckland will not tolerate cheating, or assisting others to cheat, and views cheating in coursework as a serious academic offence. The work that a student submits for grading must be the student's own work, reflecting their learning. Where work from other sources is used, it must be properly acknowledged and referenced. This requirement also applies to sources on the internet. A student's assessed work may be reviewed for potential plagiarism or other forms of academic misconduct, using computerised detection mechanisms.
Class Representatives
Class representatives are students tasked with representing student issues to departments, faculties, and the wider university. If you have a complaint about this course, please contact your class rep who will know how to raise it in the right channels. See your departmental noticeboard for contact details for your class reps.
Inclusive Learning
All students are asked to discuss any impairment related requirements privately, face to face and/or in written form with the course coordinator, lecturer or tutor.
Student Disability Services also provides support for students with a wide range of impairments, both visible and invisible, to succeed and excel at the University. For more information and contact details, please visit the Student Disability Services’ website http://disability.auckland.ac.nz
Special Circumstances
If your ability to complete assessed coursework is affected by illness or other personal circumstances outside of your control, contact a member of teaching staff as soon as possible before the assessment is due.
If your personal circumstances significantly affect your performance, or preparation, for an exam or eligible written test, refer to the University’s aegrotat or compassionate consideration page https://www.auckland.ac.nz/en/students/academic-information/exams-and-final-results/during-exams/aegrotat-and-compassionate-consideration.html.
This should be done as soon as possible and no later than seven days after the affected test or exam date.
Learning Continuity
In the event of an unexpected disruption, we undertake to maintain the continuity and standard of teaching and learning in all your courses throughout the year. If there are unexpected disruptions the University has contingency plans to ensure that access to your course continues and course assessment continues to meet the principles of the University’s assessment policy. Some adjustments may need to be made in emergencies. You will be kept fully informed by your course co-ordinator/director, and if disruption occurs you should refer to the university website for information about how to proceed.
Student Charter and Responsibilities
The Student Charter assumes and acknowledges that students are active participants in the learning process and that they have responsibilities to the institution and the international community of scholars. The University expects that students will act at all times in a way that demonstrates respect for the rights of other students and staff so that the learning environment is both safe and productive. For further information visit Student Charter https://www.auckland.ac.nz/en/students/forms-policies-and-guidelines/student-policies-and-guidelines/student-charter.html.
Disclaimer
Elements of this outline may be subject to change. The latest information about the course will be available for enrolled students in Canvas.
In this course students may be asked to submit coursework assessments digitally. The University reserves the right to conduct scheduled tests and examinations for this course online or through the use of computers or other electronic devices. Where tests or examinations are conducted online remote invigilation arrangements may be used. In exceptional circumstances changes to elements of this course may be necessary at short notice. Students enrolled in this course will be informed of any such changes and the reasons for them, as soon as possible, through Canvas.