Unit Outline
BEA286
Investment Analysis
Semester 1, 2024
Vladimir Volkov
Tasmanian School of Business & Economics (TSBE)
College of Business and Economics
CRICOS Provider Code: 00586B
Unit Coordinator
Vladimir Volkov
Email: Vladimir.Volkov@utas.edu.au
 
What is the Unit About?
Unit Description
This unit focusses on security analysis and portfolio management. The unit is designed around the following three points of view, to enable you to learn about trading and investing in financial markets. 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. In this unit you will participate in portfolio simulation (i.e. the Public ASX Sharemarket Game) managing an initial virtual wealth of A$50,000. You may not find it easy, but you will most certainly find it rewarding.
Intended Learning Outcomes
As per the Assessment and Results Policy 1.3, your results will reflect your achievement against specified learning outcomes.
On completion of this unit, you will be able to:
1.
Analyse the role of risk in financial markets.
2.
Determine and assess the prices of financial assets.
3.
Evaluate portfolio management processes.
4.
Communicate finance in written formats.
Requisites
REQUISITE TYPE
REQUISITES
Pre-requisite
BEA112
Alterations as a result of student feedback
To Be Determined
 
 
Teaching arrangements
ATTENDANCE MODE
TEACHING TYPE
LEARNING ACTIVITY
CONTACT HOURS
FREQUENCY
On Campus
Workshop
Introductory 1-hr workshop, Week 1
1
Once only
Lecture (On Campus)
Pre-recorded 1-hr lecture, once a week
1
Weekly
Workshop
2-hr workshop, fortnightly, commencing in Week 2
2
1 time per fortnight
Independent Learning
5-hrs independent learning
5
Weekly
Online
Online Class
Introductory 1-hr workshop, Week 1
1
Once only
Independent Learning
Pre-recorded 1-hr lecture, once a week
1
Weekly
Online Class
2-hr workshop, fortnightly, commencing in Week 2
2
1 time per fortnight
Independent Learning
5-hrs independent learning
5
Weekly
Attendance / engagement expectations
If your unit is offered On campus, it is expected that you will attend all on-campus and onsite learning activities. This is to support your own learning and the development of a learning community within the unit. If you are unable to attend regularly, please discuss the situation with your course coordinator and/or our UConnect support team.

If your unit is offered Online, it is expected you will engage in all those activities as indicated in the Unit Outline, including any self-directed learning.

If you miss a learning activity for a legitimate reason (e.g., illness, carer responsibilities) teaching staff will attempt to provide alternative activities (e.g., make up readings) where it is possible.
 
The Tasmanian School of Business and Economics regularly hosts Masterclasses and Industry Engagement and Employability Events, which students are encouraged to attend. Registration and details will be available via the College of Business and Economics channel on the Uni App and/or via your Unit Coordinator. 
 
 
How will I be Assessed?
 
For more detailed assessment information please see MyLO.
Assessment schedule
ASSESSMENT TASK #
ASSESSMENT TASK NAME
DATE DUE
WEIGHT
LINKS TO INTENDED LEARNING OUTCOMES
Assessment Task 1:
Case Study A
Week 5
20 %
LO1
Assessment Task 2:
Case Study B
Week 10
40 %
LO2, LO3, LO4
Assessment Task 3:
Take home exam
Exam Period
40 %
LO1, LO2, LO3, LO4
 
Assessment details
    
Assessment Task 1: Case Study A
Task Description:
You are required to complete this assignment based on the ASX Sharemarket Game and the topics covered. You are expected to justify portfolio decisions on the Australian Stock Exchange using market data from the ASX trading game. The practical tasks related to stock data in this case study should not exceed 2000 words. This assignment constitutes part A of the case study and is due in Week 5.

Further information about the assignment will be provided on MyLO

Task Length:
2000 words
Due Date:
Week 5
Weight:
20 %
 
CRITERION #
CRITERION
MEASURES INTENDED
LEARNING OUTCOME(S)
1
Describe the role of risk preferences in the context of both socially responsible companies and conventional stocks.
LO1
2
Present theoretical frameworks to differentiate and examine risks.
LO1
 
Assessment Task 2: Case Study B
Task Description:
You are required to complete this assignment based on the ASX Sharemarket Game, but this time, focusing on the derivative market in Australia. Building upon the concepts covered in part A, which pertains to stock markets, you are expected to work with real data concerning derivatives, including futures and options. This assignment constitutes part B of the case study and is primarily focussed on the application of risk management. You are expected to submit a 3000-word document for this assignment, which is due in Week 10.

Further information about the assignment will be provided on MyLO.

Task Length:
3000 words
Due Date:
Week 10
Weight:
40 %
 
 
CRITERION #
CRITERION
MEASURES INTENDED
LEARNING OUTCOME(S)
1
Explain and apply the concept of arbitrage.
LO2
2
Describe and analyse portfolio management processes.
LO2
3
Evaluate portfolio performance and justify portfolio outcomes.
LO3
4
Present the results of a trading exercise and portfolio performance based on real market data.
LO4
5
Interpret the basic theories and financial information in investment analysis and finance using logical arguments.
LO4
6
Differentiate performance of conventional and ESG stocks.
LO4
 
Assessment Task 3: Take home exam
Task Description:
This is a written examination that assesses all intended learning outcomes and represents 40% of the total unit grade. This exam will consist of multiple-choice questions, short essays, and calculations. Students will be able to access the take-home exam via MyLO and submit their answers to the submission Dropbox on MyLO.

Further details will be provided on MyLO.

Task Length:
24 hours
Due Date:
Exam Period
Weight:
40 %
 
CRITERION #
CRITERION
MEASURES INTENDED
LEARNING OUTCOME(S)
1
Diagnose the importance of risk management in financial markets.
LO1
2
Use theoretical frameworks to differentiate, measure and examine risks.
LO1
3
Explain and apply the concept of arbitrage.
LO2
4
Determine the price of financial assets.
LO2
5
Describe how the prices of financial assets are related to different forms of risk for ESG and conventional funds.
LO2
6
Describe and analyse portfolio management processes.
LO3
7
Calculate and justify portfolio outcomes.
LO3
8
Produce written outcomes using professional communication to analyse financial information.
LO4
 
 
 
How your final result is determined
To pass this unit, you need to demonstrate your attainment of each of the Intended Learning Outcomes, achieve a final unit grade of 50% or greater, and pass any hurdle tasks.
 
Submission of assignments
Where practicable, assignments should be submitted to an assignment submission folder in MYLO. You must submit assignments by the due date or receive a penalty (unless an extension of time has been approved by the Unit Coordinator). Students submitting any assignment in hard copy, or because of a practicum finalisation, must attach a student cover sheet and signed declaration for the submission to be accepted for marking.
 
Requests for extensions
If you are unable to submit an assessment task by the due date, you should apply for an extension.
 
A request for an extension should first be discussed with your Unit Coordinator or teaching support team where possible. A request for an extension must be submitted by the assessment due date, except where you can provide evidence it was not possible to do so. Typically, an application for an extension will be supported by documentary evidence: however, where it is not possible for you to provide evidence please contact your Unit Coordinator.
 
The Unit Coordinator must notify you of the outcome of an extension request within 3 working days of receiving the request.
Late penalties
Assignments submitted after the deadline will receive a late penalty of 5% of the original available mark for each calendar day (or part day) that the assignment is late. Late submissions will not be accepted more than 10 calendar days after the due date, or after assignments have been returned to other students on a scheduled date, whichever occurs first. Further information on Late Penalties can be found on the Assessments and Results Procedure.
 
Review of results and appeals
You are entitled to ask for a review of the marking and grading of your assessment task if there is an irregularity in the marking standards or an error in the process for determining the outcome of an assessment. Details on how to request a review of a mark for an assignment are outlined in the Review and Appeal of Academic Decisions Procedure.
 
 
 
Required Resources
Required reading materials
You will need the following textbook [not available from the Co-op Bookshop]: 
Fundamentals of Investments: Valuation and Management, Jordan, B, Miller, T and Dolvin, S, McGraw-Hill, 9th Edition, 2021 (ISBN: 978-1-260-57033-5).
Alternatively, you may purchase an EBOOK version of the same textbook.
 
Recommended reading materials
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 edn, 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 edn, 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 edn, 2007 (or newer). 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 edn, 2004 (or newer). This 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.
 
Other required resources
In addition to the texts/software recommended above, you are also expected to be familiar with the key academic journals in the discipline from which useful insights may be derived. In particular, you are encouraged to review regularly the relevant papers that are published in: Australian Financial Review, Morningstar, Bloomberg Business Week, etc.