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BEA286

Investment Analysis

Semester 1, 2014

THIS UNIT IS BEING OFFERED IN

HOBART/DISTANCE

Unit Coordinator:

Dr Vitali Alexeev

CRICOS Provider Code: 00586B

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Contents

Contact Details ……………………………………………………………………………………………………………………… 2

Unit Description ……………………………………………………………………………………………………………………. 3

Prior Knowledge &/or Skills OR Prerequisite Units ……………………………………………………………….. 3

Intended Learning Outcomes and Generic Graduate Attributes..………………………………………….. 4

Learning Expectations and Teaching Strategies Approach …………………….………………………………. 5

Learning Resources ……………………………………………………………………………………………………………….. 5

Details of Teaching Arrangements ………………………………………………………………………………………… 7

Assessment …………………………………………………………………………………………………………………………… 9

Unit Schedule ………………………………………………………………………………………………………………………. 17

Contact Details

Unit Coordinator/Lecturer Vitali Alexeev

Campus Hobart

Room Number Room 418, Level 4, Commerce Building

Email valexeev@utas.edu.au

Phone (03) 6226 2335

Consultation Time Mon 10am-11am, Fri 1pm-2pm

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Unit Description

This unit focuses on security analysis and portfolio management. It is designed around the following three points of view to enable you to learn about trading and investing in financial market(s).

• Investment skills for your own personal gain.

• Investment skills for the financial services industry.

• An understanding of financial markets and instruments.

The study of investments is exciting. This is the only unit that equips you to trade and invest in the stock market(s). In this unit you will participate in the portfolio simulation managing an initial virtual wealth of A$100,000. You may not find it easy, but you will most certainly find it potentially rewarding.

Now that you have reached this stage in your university studies, there will be an increased emphasis on independent learning. You are expected to complete the required readings without detailed coverage in lectures. You are expected to regularly read the financial press. If you have any deficiencies in the prerequisite levels of knowledge or skills, then you are expected to correct them on your own. When you are proficient at independently acquiring investment knowledge and skills, it will continue to work for you long after you have finished your degree.

Prior Knowledge &/or Skills OR Pre-Requisite Unit(s)

Quantitative skills: Financial mathematics and a familiarity with basic statistical techniques including standard deviation, coefficient of variation, covariance, linear regression, and constrained optimization problems.

Computing skills: Basic Excel skills (more specifically Data Analysis and Solver add-ins) are required. Basic understanding of linear regression model is desirable.

For students who are not familiar with the Data Analysis and Solver add-ins for Excel, a short introduction and an example will be given during the workshop.

Students do not need to have studied economics before, however a basic proficiency in English language skills and in constructing and interpreting simple graphs, and in basic algebra is assumed. Students should confirm that they have the required graphing and numerical skills by completing the Quantitative Skills Module on the MyLO site for this unit.

Enrolment in the Unit

Unless there are exceptional circumstances, students should not enrol in this unit after the end of

week two of semester, as the Tasmanian School of Business and Economics (TSBE) cannot guarantee

that:

any extra assistance will be provided by the teaching team in respect of work covered in the

period prior to enrolment; and

penalties will not be applied for late submission of any piece or pieces of assessment that

were due during this period.

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Intended Learning Outcomes and Generic Graduate Attributes

Learning Outcomes (LO) On completion of the unit, you will learn to:

Assessment Criteria In assessing this LO I will look at your ability to:

Assessment Methods This LO will be assessed in the unit in:

Graduate Attributes Achieving this LO will contribute to the development of your:

LO1: Explain the role of risk in financial markets.

• Diagnose the importance of risk management in financial markets.

• Calculate financial risks. • Describe the role of risk preferences. • Assess and measure risk. • Use theoretical frameworks to differentiate and examine

risks.

Portfolio Report No 1 Group Presentations Mid-Semester Test Final Examination

Knowledge: Extensive functional knowledge of finance and economics and the ability to transfer this knowledge to complex economic/finance issues and transmit this knowledge to professional peers for critical discussion. Communication: Oratory and thinking skills that enable participation in critical economic and finance discussions and the ability to defend a position. Enhance your written communication and presentation skills to clearly articulate evaluations and the implications of utilizing economic and finance theories and analysis, in a manner appropriate to audience needs. Problem-solving: The ability to apply and critically evaluate economic and finance theories. The ability to locate, analyse, evaluate and effectively use information from and in a range of mediums and formats. Global perspective: The ability to use economic and finance knowledge and theories to evaluate decision making in the global economic and finance environment, in face of ever increasing importance of financial and economic globalization. Social Responsibility: An awareness and consideration of the public interest in economics and finance practices, policy development and decision making. Insider trading.

LO2: Determine and assess the prices of financial assets

• Explain and apply the concept of arbitrage; • Determine the price of financial assets.

Portfolio Report No 1 Portfolio Report No 2 Group Presentations Mid-Semester Test Final Examination

LO3: Explain and analyse portfolio management processes

• Describe and analyse portfolio management processes; • Calculate portfolio outcomes; • Discuss the role of separation in the investment process; • Calculate and justify portfolio outcomes; • Evaluate portfolio performance.

Portfolio Report No 2 Group Presentations Final Examination

LO4: Communicate finance in oral and written formats.

Present a report and critical discussion of portfolio performance based on real market data.

Assess the validity of basic theories in investment analysis and finance through applications

Portfolio Report No 1 Portfolio Report No 2 Group Presentations

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Learning Expectations and Teaching Strategies/Approach The University is committed to a high standard of professional conduct in all activities, and holds its

commitment and responsibilities to its students as being of paramount importance. Likewise, it

holds expectations about the responsibilities students have as they pursue their studies within the

special environment the University offers. The University’s Code of Conduct for Teaching and

Learning states:

Students are expected to participate actively and positively in the teaching/learning

environment. They must attend classes when and as required, strive to maintain steady

progress within the subject or unit framework, comply with workload expectations, and

submit required work on time.

Occupational Health and Safety (OH&S) The University is committed to providing a safe and secure teaching and learning environment. In addition to specific requirements of this unit you should refer to the University’s policy at: http://www.utas.edu.au/work-health-safety/

Learning Resources

Excel template for using MS Add-on Solver for quadratic optimization will be posted on MyLO.

A guide to proprietary financial and economics database, Thomson Reuters Datastream, will be posted on MyLO.

Prescribed Text The textbook required for this unit is:

Investments, Bodie, Kane, Marcus, McGraw-Hill 2014, 10th edition, ISBN-13 9781259162329

or a slightly older edition Investments, Bodie, Kane, Marcus, McGraw-Hill 2011, 9th edition, ISBN: 978-0-07-353070-3

Recommended Texts The following text books are all excellent choices. They are listed in the order of most helpful and most suitable addition to the main text prescribed above. 1. Investment Analysis and Portfolio Management, Reilly and Brown, South-Western, 9th edition,

2009 (or newer). This is an excellent book, with many examples, graphs, and practice problems. This book is also on the list of recommended text books for the CFA examination.

2. Portfolio Construction, Management, and Protection, Strong, South-Western, 4th edition, 2006 (or newer). This text deals mostly with portfolio construction and portfolio choice. It would be a very helpful addition especially for portfolio reports 1 & 2.

3. Modern Portfolio Theory and Investment Analysis, Elton, Gruber, Brown, Goetzman, Wiley, 7th edition, 2007 (or newer). RECOMMENDED FOR POSTGRADUATE LEVEL. This is the all-time classic, written by the best specialists in the field. It is more detailed in terms of mathematical analysis of portfolio choice problems and therefore recommended for students with sufficient financial background.

4. Quantitative Financial Economics: Stocks, Bonds and Foreign Exchange, Cuthbertson and Nitzsche, Wiley, 2nd edition, 2004 (or newer). RECOMMENDED FOR POSTGRADUATE LEVEL. This

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is an excellent book for graduate finance students, portfolio choice is only a fraction of this book, but it covers many other finance topics and may be a good addition for students interested in advancing their finance background.

I have all of the above texts in my office, and, if you would like, you are welcome to drop by and look through these books before getting your own copies.

My Learning Online (MyLO) This unit is [web supported/web dependent/fully online], and access to the online MyLO unit is required. Log into MyLO at: http://www.utas.edu.au/learning-teaching-online and then select BEA286 Investment Analysis from the list of units. For help using MyLO go to http://www.utas.edu.au/learning-teaching-online/new-mylo/home .

Technical requirements for MyLO

For help and information about setting up your own computer and web browser for MyLO, see: http://uconnect.utas.edu.au/

You can access the University network and MyLO via a laptop computer or other mobile device. See: http://uconnect.utas.edu.au/uana.htm

MyLO can be accessed in the Library computers and in computer labs. See: http://www.utas.edu.au/it/computing-distributed-systems/computer-labs-facilities-and-locations

For further technical information and help, contact the UTAS Service Desk on 6226 1818 or at http://www.utas.edu.au/service-desk/

MyLO Expectations 1. Students are expected to maintain the highest standards of conduct across all modes of

communication, either with staff or with other students. Penalties may be imposed if the Unit Coordinator believes that, in any instance or mode of communication, your language or content is inappropriate or offensive. MyLO is a public forum. Due levels of respect, professionalism and high ethical standards are expected of students at all times.

2. Submission of assessment tasks via MyLO presumes that students have read, understood and abide by the requirements relating to academic conduct, and in particular, those requirements relating to plagiarism. All work submitted electronically is presumed to be “signed-off” by the student submitting as their own work. Any breach of this requirement will lead to student misconduct processes.

3. MyLO is an Internet service for teaching and learning provided by the University. It is expected that at least once a day students will check MyLO.

Student Feedback via eVALUate At the conclusion of each unit students will be asked to provide online responses to a number of matters relating to the learning and teaching within that unit. All students are asked to respond honestly to these questions, as all information received is used to enhance the delivery of future offerings.

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Details of Teaching Arrangements (Attending Students)

Lectures There will be 13 two-hour class sessions during the semester commencing weekly in Week 1 (Monday 24 February 2014). The lectures will begin at 11:00am finishing at 12:50pm and will be held in the SB.Commerce107 Lecture Th1. Note that, due to the Eight Hour Day public holiday (March 10), the lecture in Week 3 will be presented at the alternative time of Tuesday 11 March, 11:00am – 12:50pm, SB.Commerce108 Lecture Th2. Students who are unable to attend this lecture can access the audio-video presentation of the material on MyLO and/or the lectopia recording. Lectures will cover the core examinable material in the unit. Lecture slides are available on MyLO prior to each lecture. These on their own are not an adequate substitute for attending lectures and taking your own lecture notes. It is recommended that you take a copy of the lecture slides with you to class and use these as a basis for your own note-taking. Developing lecture notes is your own responsibility in this unit. If you miss a lecture ask a friend or acquaintance for notes.

Details of Teaching Arrangements (Distance Students)

Lectures All teaching materials in this unit will be placed on MyLO. Apart from accessing teaching materials, you will need to use the site regularly to check for announcements by the Unit Coordinator, to undertake the mid-semester test, submit and to submit your assignment. Distance students will share the BEA286 MyLO site with students enrolled in the on-campus version. There are multiple reasons for this, including:

Sharing of learning opportunities: Distance students will have the opportunity to watch recordings of live lectures and workshops. It is expected that these will be a lot more "realistic" than purpose-recorded videos or narrated presentations.

Sharing of resources: e.g. optional study activities, web links, etc, may be posted to the weekly folders. All students, regardless of mode of enrolment, will be exposed to the same information, materials and optional activities.

Sharing of study information: All students, regardless of enrolment mode, will have opportunity to interact with each other via discussion boards and email. This is most important, as it very much increases your class size, and therefore the range of interaction opportunities available to you. It will help you all help each other (explaining to others is an excellent learning/consolidation activity), and you can even form virtual study groups.

Distance Study Skills The University of Tasmania offers distance students a number of valuable resources to help succeed in their studies. You should complete the online orientation: http://www.utas.edu.au/orientation/ Resources are also available at: http://www.learningsupport.utas.edu.au/Resources.htm and on the library website.

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Learning Expectations and Strategies How will you approach studying in this unit? Note this section is aimed primarily at Distance students, but the comments apply generally to all students. You will see when you look at the MyLO site that the unit is divided into headings, which in turn contains the material you require. Whilst you can timetable your progress through these topics to suit your other commitments and at your own pace (i.e. the quantity and spread of hours per week is entirely up to you), you should note that assessment deadlines are not at all flexible. You will need to have studied all the relevant topics before your assessment deadlines. It is very important that you understand that in this unit you must proceed through the materials in order; the knowledge that you gain from one topic will be essential as you move on to the next topic. It is therefore very risky to get too far behind in this unit. You will not be able to just get involved in the unit half way through the semester and think that you can forget about the first few topics. These are the steps that you should follow as you tackle each topic:

Read through the materials that introduces the topic, identifies the learning objectives for the topic, and provides you with the details of what you need to do the week.

Scan through the material relevant for the topic. This material is NOT a substitute for reading the text or working problems or watching lecture recordings, but they will give you an idea of what to expect in the topic.

Read the required text book passages/chapter(s). Do not dwell on information you do not understand during first readings – the lectures will help clarify your learning, but only if you have undertaken the preparation.

Watch the recorded lecture. The lectures that are given to students taking the unit in face-to-face mode on the Hobart campus will be recorded and posted on MyLO weekly.

Watch the recorded tutorials recorded and posted on MyLO weekly.

It is very important that you check your understanding of each topic before moving onto the next, and resolving any outstanding items of confusion with further reading/practice and/or discussion.

Tutorials Students are required to attend or review the recordings of 11 tutorial sessions. These will be held and recorded weekly, commencing in Week 2.

Online Activities

Discussion boards devoted to students’ questions related to portfolio reports and presentation as well as to mid-semester test and final exam will be available.

Students are encouraged to visit the companion site of the prescribed text for additional resources. On-line quizzes categorized by each chapter can also be found at:

9th edition http://highered.mcgraw-hill.com/sites/0073530700/student_view0/index.html

10th edition http://highered.mcgraw-hill.com/sites/0077861671/student_view0/index.html

and would be a good practice for mid-semester and final tests.

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Communication, Consultation and Appointments Email Correspondence: Students are also expected to check their UTAS email site on a regular basis (at least three times a week). Students submitting requests or queries to staff via email should provide very clearly their: Family name: Preferred name; Student ID; Unit code (i.e. BEA286) and allow teaching staff at least two (2) business days to reply. Staff are not required to respond to emails in which students do not directly identify themselves, which are threatening or offensive, and that come from external (non-UTAS) email accounts. Students are advised not to have their UTAS email forwarded to an external email service (such as Gmail or Hotmail). In the past there have been significant issues where this has occurred, resulting in UTAS being blacklisted by these email providers for a period of up to one month. Consultation and Appointment: All students are able to consult your lecturer or tutor on an individual or small group basis during their office hours or by appointment. Students experiencing difficulty in the unit are urged to make use of this service early in the semester. You will be notified of office hours for all teaching staff in the unit. Where possible please respect these times and make sure that you have tried to solve problems before seeking individual assistance. Distance students will access online discussion forums at negotiated times.

Assessment

Assessment Schedule In order to pass this unit you must achieve an overall mark of at least 50 per cent of the total available marks. Details of each assessment item are outlined below.

Assessment Methods Date due Percent weighting

Links to Intended Learning Outcomes

Portfolio Report No 1 Week 5 10% LO1, LO2, LO4

Mid-Semester Test Week 9 10% LO1, LO2

Group Presentations Week 11 10% LO1, LO2, LO3, LO4

Portfolio Report No 2 Week 12 20% LO2, LO3, LO4

Final Examination Exam period 50% LO1, LO2, LO3

Note: All assignments where you are studying by distance or face-to-face are completed in groups.

In order to complete Portfolio Reports you will require data from a proprietary data supplier,

Thomson Reuters Datastream, available only at a single computer station in the Morris Miller library.

Although the search for the required data, its availability and data codes can be accessed online

from anywhere (off- or on-campus), the data acquisition (downloading the data once the data

series codes are found) can only be done from the library. It is, therefore, required that at least one

of the max 3 group members will be able to visit the library throughout the semester.

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Assessment Items 1 & 2 – PORTFOLIO REPORTS NO 1 AND 2

Task Description: Portfolio Reports are based on selected financial assets. These reports

involve gathering and analysing information from websites, proprietary

databank (Thomson Reuters Datastream), writing basic financial market

summaries and analysing the performance of a variety of financial

instruments through the use of quantitative methods and regression

analysis. Detailed guidelines and instructions will be distributed during

lectures (See Unit Schedule for exact dates) and posted on MyLO under the

icon labelled “Assignments”.

Task Length Max 20 pages

Assessment Criteria: Portfolio reports will be considered late if

The posting time of the electronic submission is past 2:00pm (noon) on the

due date. (Don't cut it short! 2:01pm is considered late!)

Portfolio report #2 will be considered incomplete if

The submission is not accompanied by Excel file detailing all the calculations.

This is for Portfolio Report 2 only. No Excel files are required with Portfolio

Report 1 submission.

Link to Unit’s

Learning Outcomes:

LO1, LO2, LO3, LO4

Due Date: Portfolio Report No 1: 28th March, 2:00pm

Portfolio Report No 2: 23th May, 2:00pm

Value: 10% for PR1 and 20% for PR2.

Assessment Item 3 – MID-SEMESTER TEST

Task Description: Multiple choice problems. May include short essay/problem solving

questions.

Task Length 2 hours. Online for Face-to-Face and Distance Education students.

Assessment Criteria: Lecture Material weeks 1 to 8 plus any assigned readings up until (and

including) week 8.

Link to Unit’s

Learning Outcomes:

LO1, LO2

Due Date: April 28, see detailed in UNIT SCHEDULE (last page) for more information on

specific time.

Value: 10%

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Assessment Item 4 – GROUP PRESENTATIONS

Task Description: Each group will be required to prepare a portfolio presentation summarising the portfolio's investment strategy, constraints, composition and performance.

Task Length Group presentations (max 12 slides) are to be submitted electronically through MyLO with specific requirements for the two streams (FF and DE):

Face-To-Face (FF) students are required to post their portfolio presentation slides on MyLO (Discussion thread Portfolio Presentations Face-to-Face Stream) AND to present their portfolio on Week 11 during the workshop.

Distance Education (DE) students are required to prepare a video/audio presentation and post the link on MyLO (Discussion thread Portfolio Presentations Distance Stream) AND reply to all the questions and comments posted on MyLO regarding their portfolios within a week following the presentation posting.

Note: For “mixed” groups containing at least one DE student and at least one FF student, the group may elect either stream (DD or FF). For groups consisting only of FF students, FF stream (face to face presentation during tutorial in Week 11) is the only option. Groups consisting of DE students only without the ability to visit campus on few occasions (to download the data from Datastream in Morris Miller Library) are discouraged.

Presentations will be considered late if:

The posting time of the presentation slides or audio/video links is past 2:00pm (noon) on May 12th. (Don't cut it short! 2:01pm is considered late!)

Presentations will be considered incomplete if:

FF: the group elected to present their portfolio report with Face-to-Face option and did not present their work during the workshop in Week 11 .

DE: the group elected to present their portfolio report with Distance option did not reply to all on-line questions and posts (from the lecturer or peers) related to their presentation.

IMPORTANT! Participation bonus marks: Up to 2% of total unit grade may be allocated as bonus marks for active and well-rounded participation in posting comments/suggestions/well-though questions to peer groups. The bonus marks will be assigned not for the quantity of posts/comments but for their quality and usefulness to the peer groups with the aim to improve their final report or provide valuable suggestions. (Max possible grade for the unit can be 102%). E.g. two very good and helpful comments/suggestions can earn you the 2% bonus while ten short and uninformative comments can result in 0 marks. You may provide comments both to DE or FF stream presentations posted. Note, however, that DE presentations are intended to be video/audio narrated presentations and might be easier to follow. While no restriction is placed on the FF stream presentations which can be narrated as well, the requirement for the FF presentations are simply the slides of main results.

Assessment Criteria: Group Presentations are based on Portfolio Reports No 1 and 2, assessment and critique of results presented

Link to Unit’s Learning Outcomes:

LO1, LO2, LO3, LO4

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Due Date: FF: May 12, 2:00pm online. Plus poster session during workshop.

DE: May 12, 2:00pm online. Plus on-line responses to questions and discussions on MyLO discussion thread.

Value: 10%

Assessment Item 5 – FINAL EXAM

Task Description: Section Question Format Number of questions

Worth

A True/False 10 questions 10 marks

B Multiple choice problems 50 questions 50 marks

60 marks

* Students are permitted to take calculators and a single double-sided hand

written or typed formula sheet (with formulae only!) into the exam room.

Task Length 3 hours

Assessment Criteria: Lecture Material in weeks 1 to 13 plus any assigned readings throughout the

semester

Link to Unit’s

Learning Outcomes:

LO1, LO2, LO3, LO4

Due Date: During final exam period

Value: 50%

Your final examination for this unit will be held during the scheduled examination period as indicated by Student Administration in correspondence to you. Examinations will normally be scheduled Monday to Saturday inclusive. Examinations may be held during the day or evening and students should consult the university information which will be made available towards the end of semester. You are advised to make any necessary arrangements with employers now for time off during the examination period to sit this examination. Your participation at the scheduled time is not negotiable unless there are exceptional circumstances. Note that you will be expected to sit the examination at your recorded study centre. To find out more go to the Exams Office website: http://www.utas.edu.au/exams/home .

How Your Final Result Is Determined Your final mark for this unit is determined by your internal assessment (50%) and your examination mark (50%) plus 2% bonus marks for participation during the portfolio presentations. In order to pass this unit your final total mark (i.e., the sum of internal and examination mark) must be 50% or higher. Final marks may be moderated.

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Submission of Assessment Items

Lodging Assessment Items Assignments must be submitted electronically through the relevant assignment drop box in MyLO. All assessment items must be handed in by the specified due date and time. Where appropriate, unit coordinators may also request students submit a paper version of their assignments. All assignments must have a TSBE Assignment Cover Sheet, which is available as a blank template from the TSBE website: [http://www.utas.edu.au/business-and-economics/student-resources]. All assignments must include your name, student ID number, tutorial day/time, and your tutor’s name. If this information is missing the assignment will not be accepted and, therefore, will not be marked. Please remember that you are responsible for lodging your assessment items on or before the due date. We suggest you keep a copy. Even in ‘perfect’ systems, items sometimes go astray.

Late Assessment and Extension Policy In this Policy

(a) ‘day’ or ‘days’ includes all calendar days, including weekends and public holidays;

(b) ‘late’ means after the due date and time; and

(c) ‘assessment items’ includes all internal non-examination based forms of assessment

2. This Policy applies to all students enrolled in the Tasmanian School of Business and Economics Units at whatever Campus or geographical location.

3. Students are expected to submit assessment items on or before the due date and time specified in the relevant Unit Outline. The onus is on the student to prove the date and time of submission.

4. Students who have a medical condition or special circumstances may apply for an extension. Requests for extensions should, where possible, be made in writing to the Unit Coordinator on or before the due date. Students will need to provide independent supporting documentation to substantiate their claims.

5. Late submission of assessment items will incur a penalty of 10% of the total marks possible for that piece of assessment for each day the assessment item is late unless an extension had been granted on or before the relevant due date.

6. Assessment items submitted more than five (5) days late will not be accepted.

7. Academic staff do NOT have the discretion to waive a late penalty, subject to clause 4 above.

Academic Referencing and Style Guide In your written work you will need to support your ideas by referring to scholarly literature, works of art and/or inventions. It is important that you understand how to correctly refer to the work of others and maintain academic integrity.

Failure to appropriately acknowledge the ideas of others constitutes academic dishonesty (plagiarism), a matter considered by the University of Tasmania as a serious offence.

The appropriate referencing style for this unit is: the Harvard style. For information on presentation of assignments, including referencing styles: http://utas.libguides.com/referencing

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Review of Assessment and Results

Review of Internal Assessment It is expected that students will adhere to the following policy for a review of any piece of continuous/internal assessment. The term continuous/internal assessment includes any assessment task undertaken across the teaching phase of any unit (such as an assignment, a tutorial presentation, and online discussion, and the like), as well as any capstone assignment or take-home exam. Within five (5) days of release of the assessment result a student may request a meeting with the assessor for the purpose of an informal review of the result (in accordance with Academic Assessment Rule No. 2 Clause 22 – www.utas.edu.au/university-council/university-governance/rules). During the meeting, the student should be prepared to discuss specifically the marks for the section(s) of the marking criteria they are disputing and why they consider their mark(s) is/are incorrect. The assessor will provide a response to the request for review within five (5) days of the meeting. If the student is dissatisfied with the response they may request a formal review of assessment by the Head of School, with the request being lodged within five (5) days of the informal review being completed. A Review of Internal Assessment Form must be submitted with the formal review (http://www.studentcentre.utas.edu.au/examinations_and_results/forms_files/review_of_assessment.pdf).

Review of Final Exam/Result In units with an invigilated exam students may request a review of their final exam result. You may request to see your exam script after results have been released by completing the Access to Exam Script Form, which is available from the TSBE Office, or at the following link – http://www.utas.edu.au/business-and-economics/student-resources. Your unit coordinator will then contact you by email within five (5) working days of receipt of this form to go through your exam script. Should you require a review of your final result a formal request must be made only after completing the review of exam script process list above. To comply with UTAS policy, this request must be made within ten (10) days from the release of the final results (in accordance with Academic Assessment Rule No. 2 Clause 22 – www.utas.edu.au/university-council/university-governance/rules). You will need to complete an Application for Review of Assessment Form, which can be accessed from www.studentcentre.utas.edu/examinations_an_results/forms_files/review_of_assessment.pdf. Note that if you have passed the unit you will be required to pay $50 for this review. The TSBE reserves the right to refuse a student request to review final examination scripts should this process not be followed.

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Further Support and Assistance If you are experiencing difficulties with your studies or assessment items, have personal or life-planning issues, disability or illness which may affect your study then you are advised to raise these with your lecturer or tutor in the first instance. If you do not feel comfortable contacting one of these people, or you have had discussions with them and are not satisfied, then you are encouraged to contact the Director of Undergraduate Programs:

Name: David Kronenberg Room: Room 407, Level 4, Commerce Building Phone: (03) 6226 2280 Email: David.Kronenberg@utas.edu.au

Students are also encouraged to contact their Undergraduate Student Adviser who will be able to help in identifying the issues that need to be addressed, give general advice, assist by liaising with academic staff, as well as referring students to any relevant University-wide support services. Please refer to the Student Adviser listings at www.utas.edu.au/first-year/student-advisers for your advisers contact details. There is also a range of University-wide support services available to students, including Student Centre Administration, Careers and Employment, Disability Services, International and Migrant Support, and Student Learning and Academic Support. Please refer to the Current Students website (available from www.utas.edu.au/students) for further information. If you wish to pursue any matters further then a Student Advocate may be able to assist. Information about the advocates can be accessed from www.utas.edu.au/governance-legal/students-complaints . The University also has formal policies, and you can find out details about these policies from the following link – www.utas.edu.au/governance-legal/student-complaints/how-to-resolve-a-student-complaint/self-help-checklist.

Academic Misconduct and Plagiarism Academic misconduct includes cheating, plagiarism, allowing another student to copy work for an assignment or an examination, and any other conduct by which a student:

(a) seeks to gain, for themselves or for any other person, any academic advantage or advancement to which they or that other person are not entitled; or

(b) improperly disadvantages any other student.

Students engaging in any form of academic misconduct may be dealt with under the Ordinance of Student Discipline. This can include imposition of penalties that range from a deduction/cancellation of marks to exclusion from a unit or the University. Details of penalties that can be imposed are available in the Ordinance of Student Discipline – Part 3 Academic Misconduct, see http://www.utas.edu.au/universitycouncil/legislation/. Plagiarism is a form of cheating. It is taking and using someone else’s thoughts, writings or inventions and representing them as your own, for example:

using an author’s words without putting them in quotation marks and citing the source;

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using an author’s ideas without proper acknowledgment and citation; or

copying another student’s work.

using ones’ own work from previously submitted assessment items if repeating a unit. If you have any doubts about how to refer to the work of others in your assignments, please consult your lecturer or tutor for relevant referencing guidelines, and the academic integrity resources on the web at http://www.academicintegrity.utas.edu.au/ The intentional copying of someone else’s work as one’s own is a serious offence punishable by penalties that may range from a fine or deduction/cancellation of marks and, in the most serious of cases, to exclusion from a unit, a course, or the University. The University and any persons authorised by the University may submit your assessable works to a plagiarism checking service, to obtain a report on possible instances of plagiarism. Assessable works may also be included in a reference database. It is a condition of this arrangement that the original author’s permission is required before a work within the database can be viewed. For further information on this statement and general referencing guidelines, see http://www.utas.edu.au/plagiarism/ or follow the link under ‘Policy, Procedures and Feedback’ on the Current Students homepage.

BEA286 Investment Analysis, Unit Outline, S1, 2014

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UNIT SCHEDULE All Chapter references to readings refer to the Investments, Bodie, Kane, Marcus, McGraw-Hill 2014 (10th ed) and 2011 (9th ed). Both editions have similar chapter numeration and structure. FF: Face-to-Face students. DE: Distance Education students TBA: To Be Announced

Week Lecture Workshop Assessment

Week 1

Feb 24

Buying and Selling Securities

Readings: Sec.1.4, Ch.2 (exclude Sec.2.4), Ch.3

No workshop scheduled Arrange groups (up to 3 people per group)

Week 2

Mar 3

Security Types, Market Indices and Mutual Funds

Readings: Sec.2.4, Ch.4

Workshop 1: Data sources, working with Datastream, Google Finance, Yahoo Finance

Finalize group selection.

Week 3

Mar 11

Tuesday 11am-12:50pm, LT2

Risk and Return

Readings: Ch.5

SEE Details of Teaching Arrangements-> Lectures section on PAGE 6 for scheduling details.

Workshop 2: Portfolio Report 1: Requirements and Expectations

Portfolio Report No 1 to be handed out.

Week 4

Mar 17

Risk Aversion and Capital Allocation

Readings: Chs.6

Workshop 3: Excel Data Analysis add-in

Week 5

Mar 24

Optimal Risky Portfolios

Readings: Ch.7

Workshop 4: Excel Solver add-in

Portfolio Report No 1 due on March 28

th, 2:00pm

Week 6

Mar 31

Index Models and CAPM

Readings: Ch.8,9 (exclude Sec.9.5)

Workshop 5: TBA

Week 7

Apr 7

Multifactor Models and APT

Readings: Ch.10

Workshop 6: Portfolio Report 2: Requirements and Expectations

Portfolio Report No 2 to be handed out

Week 8

Apr 14

Security Analysis

Readings: Ch.17, 18, 19

Workshop 7: TBA

Easter Break

Week 9

Apr 28

Mid Semester Test

(covering material from chapters, lectures and handouts during Weeks 1-8)

No Workshops scheduled On-line mid-semester test

FF students: Online BUT in lecture time slot, Apr 28, 11am-1pm.

DE students: Online, Apr 28,

2 hour time slot from 11am to 11pm.

Week 10

May 5

Portfolio Performance Evaluation

Readings: Ch.24

Workshop 8: TBA

Week 11

May 12

International Diversification

Readings: Ch.25

Workshop 9: Portfolio Presentation poster sessions

Portfolio Presentations due

Week 12

May 19

Market Efficiency

Readings: Ch.11,12

Workshop 10: Feedback of the presentations and way to improve Portfolio Report 2

Portfolio Report No 2 due on May 23th, 2:00pm

Week 13

May 26

Fixed-Income Securities: pricing and portfolio strategies

Readings: Ch.14-16

Workshop 11: Unit Review

Exam period June 7 to June 24

BEA286 Investment Analysis, Unit Outline, S1, 2014

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Presentation Evaluation Criteria

Group # Member 1 name Member 1 ID Member 2 name Member 2 ID

The table below describes how your presentation is evaluated. The numbers in the top of the boxes are points earned for each criterion with 0 being a total absence of the criterion under evaluation. The total score can range between 0 and 100 when you

add up the numbers. Evaluation forms will be returned to students no later than the next class.

Organization (20%)

20 Consistently clear, concise, well organized. Points were easy to follow because of the organization. Transitions between sections smooth and coordinated.

15 Usually clear, concise, well organized. Most of the presentation was easy to follow. Transitions between sections usually coordinated.

10 Not always clear or concise. Organization was adequate, but weak. Occasionally wandered and was sometimes difficult to follow. Transitions between sections weak.

5 Often unclear and disorganized. The presentation was confusing and difficult to follow. Transitions between sections awkward.

Topic Knowledge (20%)

20 Displayed an excellent grasp of the material. Demonstrated excellent mastery of content, application and implications. Excellent research depth.

15 Displayed a general grasp of the material. Demonstrated good mastery of content, application and implications. Good research depth.

10 Displayed some grasp of the material. Demonstrated adequate mastery of content, application and implications. Research not very deep.

5 Displayed a poor grasp of the material. Demonstrated a superficial handling of content, application and implications. Little depth of research.

Creativity (20%)

20 Very creative and original. Imaginative design and use of materials. Novel handouts, visual aids, or methods.

15 Exhibited some originality and creativity.

10 Routine treatment, minimal thought given to originality or creativity.

5 Lacked creativity. Very ordinary and mundane.

Visual Aids (20%)

20 Simple, clear, easy to interpret, easy to read. Well coordinated with content, well designed, used very effectively. Excellent example of how to prepare and use good visual aids

15 Usually clear, easy to interpret, easy to read. Generally well coordinated with content, design was okay, generally used effectively. Demonstrated understanding of how to use visual aids.

10 Marginally acceptable, too complex, crowded, difficult to read or interpret. Adequate coordination with content. Used only adequately. Showed little understanding of how to prepare and use visual aids.

5 Poor quality visual aids (or none), hard to read, technically inaccurate, poorly constructed. Poor coordination with content. Used poorly. The presenter did not seem to know how to prepare or use visual aids effectively.

Summary (20%)

20 Clear, concise, major points emphasized, clear recommendations, strong conclusion or call for action.

15 Clear for the most part, with major points emphasized, good conclusion or call for action. Good recommendations

10 Referred to main points, recommendations weak or missing, weak conclusion or call for action.

5 Vague mention of major points, no recommendations, weak conclusion, weak or no call for action.

TOTAL POINTS (out of 100):

____________

COMMENTS:

BEA286 Investment Analysis, Unit Outline, S1, 2014

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Writing Evaluation Criteria – Portfolio Reports 1 & 2

The evaluation of your report will consist of two major parts:

1. Knowledge, methods and results (60%) – I will evaluate the correct use of methods and formulas, as well as correctness of your results. Detailed breakdown and tasks for Portfolio reports 1 and 2 will be distributed during class or posted on MyLO

on the dates outlined in Unit Schedule. 2. Report written in a professional manner (40%) - The report should be descriptive and opinionated. It is important that you

explain your findings and/or results. Make use of diagrams, (pie) charts, tables, table of contents effectively. In evaluating

your report I will take into account how clearly and concisely your thoughts are articulated with an effective and

appropriate use of financial terms. Make sure to check for grammar and spelling.

Organization and Visual Appearance (10%)

10 The report was extremely well organized and supported through the use of details and examples. Excellent and concise representation through diagrams, (pie) charts and tables.

7.5 The organization of the report was good and generally well supported with examples. Good representation through diagrams, (pie) charts and tables.

5 The organization of the report was weak and support was insubstantial or unconvincing. Representation through diagrams, (pie) charts and tables was adequate, but suffered from cluttering of unnecessary visual aids.

2.5 The paper was poorly organized and lacked supporting evidence. Generalizations were a problem. Weak or no representation through diagrams, (pie) charts and tables.

Variety of Sentence Structure and Paragraph Organization (10%)

10 Sentences were varied and well written. All paragraphs were organized around topic sentences and fully developed. Transitions were handled well. Excellent use of financial vocabulary/terms.

7.5 Most sentences were varied and well written. Most paragraphs were organized around topic sentences and fully developed. Transitions were adequate. Very good use of financial vocabulary/terms.

5 Sentences were somewhat varied, and some were awkward. Few paragraphs were organized around topic sentences and fully developed. Transitions were weak. Adequate use of financial vocabulary/terms.

2.5 Most sentences followed the same pattern and many were awkward. Little or no evidence of paragraph organizations. Transitions were poor or lacking. Weak use of financial vocabulary/terms.

Grammar-Mechanics-Usage-Spelling (10%)

10 No major errors; 1-2 minor errors. (See below)

7.5 No major errors; 3-4 minor errors. (See below)

5 One major error; 5-6 minor errors. (See below)

2.5 Two or more major errors; 6 or more minor errors. (See below)

Examples of Major Errors: comma splice, sentence fragment, fused sentence, subject-verb not in agreement. Examples of Minor Errors: spelling errors, comma errors, general punctuation errors, pronoun errors, sentence structure errors.

Overall Assessment (10%)

10 The report was outstanding. It demonstrated superior understanding of the material covered. It was very well opinionated

7.5 The report was good. It demonstrated an average understanding of the material covered.

5 The report was acceptable. It demonstrated some understanding of the material covered.

2.5 The report was not acceptable. The work was not up to the level of quality expected in this unit.

1. Knowledge, methods and results ___________ (out of 60)

2. Report written in a professional manner ___________ (out of 40)

TOTAL POINTS ___________ (out of 100) COMMENTS: