This unit is directed towards students interested in studies relating to investment decisions and portfolio management.  The evolution of the course follows the investment process, beginning with coverage of asset classes, instruments and Australian and International financial markets.  Pricing of assets is then evaluated within an equilibrium framework before relaxing these efficiency assumptions in the context of fundamental and technical valuation approaches.  The course then proceeds with active and passive asset allocation techniques, and concludes with management and performance measurement of multi-asset portfolios.

By the end of this course, students are expected to:

• Have attained an understanding of core investments theory;
• Demonstrate a knowledge of the issues associated with the application of investments theory in a practical setting;
• Be able to perform in group environs; and,
• Be effective in communicating the results of empirical research.

Details about assessment may change during the first two weeks of semester. Please ensure that you check with your lecturer or tutor about any changes. Changes to the assessment schedule will be posted to the Wattle site.

Assignment  - 20%

Optional Mid-semester exam - 0-20%

Final Examination - 60-80%.

NB. The Final Examination will count towards 80% of the overall course grade of a student who either did not attempt the mid-semester examination, or who did sit the test but obtained a better mark in the final exam.  The exam will count towards 60% of a student’s overall mark in all other cases. 

Students taking this course are expected to commit at least 10 hours a week to completing the work.  This will include:

• 2 hours a week attending the lecture;
• 1 hour a week attending the tutorial they have enrolled in; and,
• 7 hours a week reading required chapters from the prescribed textbook, reviewing lectures materials, preparing tutorial questions and completing the assignment.

Students must have passed FINM1001 Money Markets and Finance in order to be eligible to enrol in FINM3001 Investments.

1. Bodie, Z., Ariff, M., da Silva Rosa, R., Kane, A. and Marcus, A., 2007, Investments, McGraw-Hill Australia, Sydney.
2. The CFA Code of Ethics and Standards of Professional Conduct, available online at: http://www.cfainstitute.org/learning/products/publications/ccb/Pages/ccb.v2010.n14.1.aspx
3. Pages 5 and 69 – 104 of the CFA Standards of Practice Handbook, available online at: http://www.cfainstitute.org/learning/products/publications/ccb/Pages/ccb.v2010.n2.1.aspx#

Recommended Reading

Bodie, Z., Kane, A. and Marcus, A., 2011, Investments, 9^th Edition, Mc-Graw Hill/Irwin, New York.

The lecturer will make any supplemental readings available on Wattle.

For further information please refer to http://ecocomm.anu.edu.au/courses/course.asp?code=FINM3001