Unit Outline
BFA607
Investment Planning
Semester 2, 2024
Ayobolawole Ogundipe
Tasmanian School of Business & Economics (TSBE)
College of Business and Economics
CRICOS Provider Code: 00586B
Unit Coordinator
Ayobolawole Ogundipe
Email: ayobolawole.ogundipe@utas.edu.au
 
What is the Unit About?
Unit Description
In this unit, you will be introduced to the basic principles of investing. A discussion will be made of the main characteristics of investments with an emphasis on risk and return and the trade-off between the two. The unit focuses on the concepts of portfolio investment and the importance of risk management, plus addresses the issues of correlation and diversification. Identification of the risk profile of an investor is of critical importance in selecting an investment portfolio. The process of asset allocation is a very subjective one and particular to the needs of individual investors. You will study the process of asset allocation, as well as some basic investment approaches. While most people would have a number of basic investment objectives, few people are in a position to be able to devise a plan to help them achieve their objectives. A key ingredient to being able to implement a comprehensive financial plan is determining the investment products that may be appropriate for an investor. We will review the characteristics of individual investment products.
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
Describe the role of the financial system, its function, and the key participants within the finance system.
2
Assess the potential risks affecting the financial system, their impact on financial service products, providers, clients and long-term economic performance using financial tools and techniques.
3
Construct and defend a multi-asset portfolio.
4
Apply the principles of behavioural finance to identify typical behaviour patterns exhibited by investors while making sustainable investment decisions.
5
Evaluate funding methods for investments and communicate investment recommendations.
Alterations as a result of student feedback
To Be Determined. 
 
 
Teaching arrangements
ATTENDANCE MODE
TEACHING TYPE
LEARNING ACTIVITY
CONTACT HOURS
FREQUENCY
On Campus
Lecture (Online)
Pre-recorded online lectures via MyLO
1
Weekly
Workshop
Face-to-face workshop
2
Study Period 6 times
Online
Lecture (Online)
Pre-recorded online lectures via MyLO
1
Weekly
Workshop (Online)
Weekly online workshop
1
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 or includes online activities, it is expected you will engage in all those activities as indicated in the Unit Outline or MyLO, 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:
Mid-semester test
Week 7
30 %
LO1, LO2, LO3, LO4, LO5
Assessment Task 2:
Application questions and case study
Refer to Assessment Description
30 %
LO1, LO2, LO3, LO4, LO5
Assessment Task 3:
Final Exam - take home
Exam Period
40 %
LO1, LO2, LO3, LO4, LO5
 
Assessment details
Assessment Task 1: Mid-semester test
Task Description:
This mid-semester test is worth 30% of the total unit grade.
You are required to undertake mid-term test (online) in week 7. The test will cover Weeks 1 to 6 contents and comprise both theory and practical questions requiring calculations. A formula sheet will be provided with the test paper and will be posted on MyLO before the test for reference.

Further details will be provided on MyLO.
Task Length:
24 hours
Due Date:
Week 7
Weight:
30 %
 
CRITERION #
CRITERION
MEASURES INTENDED
LEARNING OUTCOME(S)
1
Explain how financial markets promote the Sustainable Development Goals.
LO1
2
Use relevant financial techniques to assess the potential risks affecting the financial system and economic performance.
LO2
3
Construct and defend a multi-asset portfolio, incorporating sustainable investment principles.
LO3
4
Apply the principles of behavioural finance in making investment decisions.
LO4
5
Discuss the challenges in raising capital to promote sustainable development and responsible investment management practices.
LO5
 
Assessment Task 2: Application questions and case study
Task Description:
Written in depth analysis of investment and financial planning topics.
Submission of application questions and case study. It is very important that you not only learn key investment skills and knowledge but when and how to apply them. It is also important that you experience some of the challenges that you may encounter as you apply what you have learned. We have therefore prepared weekly application questions for you to work through, so that you gain experience applying what you have learned. Application questions are detailed in presentation material for each week. The prescribed material will be available in MyLO under Content for the relevant week.
During the semester, we will formally assess your individual responses submitted to MyLO for a minimum of three allocated sets of application questions (i.e., your responses to the questions from three different weeks) and one case study. Further instructions will be provided by via MyLO. This will advise which weeks you have been allocated application questions (e.g., Weeks 3, 6, 9) and the case study. During each of these weeks, you will submit your responses to a MyLO Assignment Submission folder by Tuesday 5 pm for the given week.
All students are strongly encouraged to attempt the application questions, even if they are not being assessed in a particular week.
Task Length:
Word limit will be specified, however interpretation of calculations, where requested, will require a minimum of one paragraph.
Due Date:
Refer to Assessment Description
Weight:
30 %
 
 
CRITERION #
CRITERION
MEASURES INTENDED
LEARNING OUTCOME(S)
1
Examine the role, functions, and key participants of the financial system, and discuss the different financial markets and traded instruments.
LO1
2
Apply relevant financial techniques to assess the potential risks affecting the financial system and economic performance.
LO2
3
Conduct a critical analysis of the contemporary financial and investment issues by evaluating the relevant theoretical aspects
LO2
4
Critique the Efficient Market Hypothesis (EMH) and asset pricing models considering their usefulness and applications in sustainable investment practices.
LO3
5
Apply the knowledge of behavioural finance to identify typical behaviour patterns exhibited by investors while making investment decisions.
LO4
6
Evaluate funding methods for investments by applying financial tools and techniques.
LO5
 
Assessment Task 3: Final Exam - take home
Task Description:
This is a written examination that assesses all intended learning outcomes and represents 40% of the total unit grade. Students will be able to access the take-home exam via MyLO. This is an open book exam and students are required to submit their answers to the exam submission Dropbox on MyLO.
Students will be provided with two client scenarios across managed funds and direct investments. The first scenarios will examine the student’s knowledge of managed investments and asset allocation, then apply this knowledge to practical examples. The second scenario will be related to direct investing, types of investment assets covering shares and fixed interest, behavioural finance, strategic planning opportunities and outcomes.

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
Discuss the role of the financial system, its function, and the key participants within the finance system.
LO1
2
Identify and apply relevant financial techniques to assess the potential risks affecting the financial system and economic performance.
LO2
3
Construct and defend a multi-asset portfolio.
LO3
4
Apply the knowledge of behavioural finance to identify typical behaviour patterns exhibited by investors while making investment decisions.
LO4
5
Evaluate funding methods for investment using financial tools and techniques.
LO5
 
 
 
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.
Academic integrity
Academic integrity is about acting responsibly, honestly, ethically, and collegially when using, producing, and communicating information with other students and staff members.

In written work, you must correctly reference the work of others to maintain academic integrity. To find out the referencing style for this unit, see the assessment information in the MyLO site, or contact your teaching staff. For more detail about Academic Integrity, see Important Guidelines & Support.
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 text:
Bodie, Z., Kane, A. and Marcus, A.J., (2023). Investments, McGraw-Hill, 13th edition, ISBN: 9781264412662, 1264412665
 
Recommended reading materials
Saunders, M., Lewis, P. and Thornhill, A., 2019. Research Methods for Business Students, Pearson education, 8th edition, ISBN: 9781292208787, 1292208783.
Ackert, L. and Deaves, R., 2010, Behavioral Finance: Psychology, Decision-Making, and Markets, 1st edn, Cengage Learning.
Taylor, S., and Juchau, R., 2020, Financial Planning in Australia: Advice and Wealth Management 9th edition Administration, LexisNexis Butterworths, Sydney.
Valentine, T., and Scott, C., 2011, Modern Financial and Investment Planning 2nd edition, Pearson Australia.
Jordan, B., Miller, T., and Dolvin, S., 2021. Fundamentals of Investments: Valuation and Management, McGraw-Hill, 9th Edition, (ISBN10: 1260013979 | ISBN13: 9781260013979).
 
Other required resources
In addition to the texts recommended above, students are also expected to be familiar with the key academic journals in the discipline from which useful insights may be derived. Students are therefore encouraged to follow current events and developments in finance in the press. In particular, students are encouraged to regularly review the relevant papers that are published in:
The Australian Financial Review (www.afr.com),
The Economist (www.economist.com),
The Financial Times (www.ft.com),
The Wall Street Journal (www.wsj.com).

There are many resources on the web but be aware not all of them are worthwhile. Consult the leading textbooks for references.

Academic journals include Financial Planning Research Journal, Journal of Financial Planning, and the Journal of Financial Counseling and Planning. Other journals that are more of general interest in business, economics and finance include the Journal of Finance, Journal of Applied Corporate Finance, Accounting and Finance, with other journals that can be found in the library.