BFF5220 - Applied investments - 2019

This unit explores the theory, tools and techniques used to analyse and price securities. It provides a synopsis of the operation of the securities markets and the mechanics of securities trading. The fundamental valuation tools, including asset pricing models, discounted cash flows and risk-neutral valuation are examined and applied to the pricing of securities across a range of asset classes.

The topics covered include: overview of security market operations, portfolio theory, asset pricing models, market efficiency and behavioural finance, fixed income valuation, and valuing derivative contracts.

The learning goals associated with this unit are to:

1. develop a recognition and understanding of the investment environment and its impact on asset valuation
2. discuss the concept of modern portfolio theory and its relation to the measurement of risk and expected returns
3. critique multi-factor asset pricing models and test competing models
4. apply analytical skills related to the valuation of securities across a range of asset classes
5. demonstrate critical thinking, analytical and problem-solving skills in the context of investment theories and practices
6. demonstrate in an individual summative assessment task the acquisition of a comprehensive understanding of the topics covered by BFF5220.

Within semester assessment: 50% + Examination: 50%

Minimum total expected workload to achieve the learning outcomes for this unit is 144 hours per semester typically comprising a mixture of scheduled learning activities and independent study. Independent study may include associated readings, assessment and preparation for scheduled activities. The unit requires on average three/four hours of scheduled activities per week. Scheduled activities may include a combination of teacher directed learning, peer directed learning and online engagement.

See also Unit timetable information