FINANCE 761 : Portfolio Theory and Investment Analysis

Business and Economics

2022 Semester One (1223) (15 POINTS)

Course Prescription

Advanced coverage of contemporary issues in investments through readings of classic theoretical articles and recent empirical studies. Topics include: market efficiency and empirical anomalies, risk-return relationships and alternative investment vehicles and strategies. This course builds on material covered in FINANCE 261 and 361 and presumes the student has completed MATHS 208 or its equivalent.

Course Overview

The course is designed to give students exposure to a wide range of research in the area of empirical asset pricing and prepare them for careers in the financial services industry and/or for pursuing a doctorate degree. It is based on seminars in which the students present and critically assess assigned papers. The course builds on knowledge acquired in Finance 261 and 361, and students who have not done these courses or their equivalent will nd it challenging and will likely have to do considerable catch-up reading to master the course 
requirements.

Course Requirements

No pre-requisites or restrictions

Capabilities Developed in this Course

Capability 1: Disciplinary Knowledge and Practice
Capability 2: Critical Thinking
Capability 3: Solution Seeking
Capability 4: Communication and Engagement
Capability 6: Social and Environmental Responsibilities

Learning Outcomes

By the end of this course, students will be able to:
  1. Describe and explain the core principles of asset pricing (Capability 1, 2, 4.1, 4.2 and 6)
  2. Demonstrate an understanding of of current empirical research in the area of asset pricing (Capability 1, 2, 4.1 and 4.2)
  3. Critically evaluate claims of successful investment strategies (Capability 2, 4.1 and 4.2)
  4. Identify interesting research questions in the field of asset pricing (Capability 3, 4.1 and 4.2)
  5. Create active class discussion (Capability 2, 4.1 and 4.3)

Assessments

Assessment Type Percentage Classification
Presentations 30% Group & Individual Coursework
Discussions 10% Individual Coursework
Assignments 25% Group & Individual Coursework
Essay 35% Individual Test
Assessment Type Learning Outcome Addressed
1 2 3 4 5
Presentations
Discussions
Assignments
Essay

Workload Expectations

This is a standard course and students are expected to spend at least 10 hours per week. For this course, you can expect 3 hours of student seminar presentations with active student participation. Hours of reading and thinking about the content and hours of work on preparation for the various assessments will vary across individual students and across time although are not expected to be signicantly above normal for a postgraduate paper. 

Delivery Mode

Campus Experience

Attendance is expected as well as active participation in class discussions.

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.

A list of papers for the weekly seminars will be made available in due course.

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.

Other Information

The empirical assignment will require the use of computers. We recommend that you use SAS, although any statistical programming language such as R, Matlab, EViews, Stata or Gauss will work as well. Excel may also work but it will be impractical and tedious without macro programming. Details about the empirical assignment will be announced later. Out of respect for all participants in FIN761, no food or drinks in the classroom, and mobiles/laptops/tablets need to be switched off! 

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 against online source material 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.

Published on 19/11/2021 10:46 p.m.