FINAN302-23A (TGA)

Investments 2

15 Points

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Division of Management
School of Accounting, Finance and Economics

Staff

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Convenor(s)

Lecturer(s)

Administrator(s)

: uwt@waikato.ac.nz

Placement/WIL Coordinator(s)

Tutor(s)

Student Representative(s)

Lab Technician(s)

Librarian(s)

: yilan.chen@waikato.ac.nz

You can contact staff by:

  • Calling +64 7 838 4466 select option 1, then enter the extension.
  • Extensions starting with 4, 5, 9 or 3 can also be direct dialled:
    • For extensions starting with 4: dial +64 7 838 extension.
    • For extensions starting with 5: dial +64 7 858 extension.
    • For extensions starting with 9: dial +64 7 837 extension.
    • For extensions starting with 3: dial +64 7 2620 + the last 3 digits of the extension e.g. 3123 = +64 7 262 0123.
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What this paper is about

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This paper builds upon knowledge of FINA202 Investments 1 and discusses advanced topics in investment. This paper provides an introduction to the structure and functioning of equity, bond markets, and derivative markets. Our focus includes trading strategies and valuation.
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How this paper will be taught

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Lectures
The lectures will be delivered online via the Webcast option in Panopto for live lecture broadcasts. The live lecture broadcast will be available on Panapto Block, under "Currently Recording" (If you can not find the live lecture during the lecture time, please reload your Moodle page). Once the lecture is completed, the video will go to "Completed recordings".

Students are strongly encouraged to watch the live stream of the lecture (Webcast) each week. Lecture attendance will need to be recorded and this will be enabled during a short window in each lecture, to be announced by your lecturer during the lecture. Note that the window for recording your attendance may not necessarily be at the same time for each lecture (see the "Lecture Attendance" section on Moodle for the details).

The lecture will be recorded via Panapto, and the video will be available on Moodle after the lecture. Students may use the videos as a tool to review the contents.

We will discuss one chapter every two weeks (see Timetable below for the details). To help your learning, I will chunk down the contents of each chapter into multiple sections. Each section will cover one or two specific topics for around 10-20 minutes.

In the lectures, I will provide quick access to the whys and hows of dealing with the questions in finance. I will offer easy-to-understand information, including equations and examples that can be quickly applied to the problems of finance.

The PowerPoint slides are uploaded onto Moodle for students to download before lectures. The slides with handwritten notes will also be uploaded to Moodle after each lecture. I hope the slides with notes may save you time in copying my notes, so you can concentrate on understanding the course materials during the lectures.

Tutorials
The tutorials will be delivered online via Zoom (the Zoom links are available on the paper's Moodle page). Students need to do the tutorial selection through Moodle, and the tutorial section selection will be open on the paper's Moodle page at 8:00 am on 27 Feb. 2023.

All students should attend one tutorial session each week. These sessions are conducted by tutors who are senior students. Tutorials normally include revision of lecture material and example questions for the tests. The tutors will be available to assist students in completing these tutorial questions and to answer any other questions about the topic.

The PowerPoint slides are uploaded onto Moodle for students to download before the tutorials. The slides with answers will also be uploaded to Moodle after each tutorial.

Tutorial sections will start in the second teaching week of the trimester.

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Required Readings

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Bodie, Kane, and Marcus, Essentials of Investments, 12th Edition (11th Edition is acceptable). McGraw-Hill Education, 2020.

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Learning Outcomes

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Students who successfully complete the course should be able to:

  • Explain the term structure of interest rates and its implications for investment
    Linked to the following assessments:
  • Value a wide range of bonds and debt issues
    Linked to the following assessments:
  • Value a wide range of company shares with diverse characteristics
    Linked to the following assessments:
  • Value option contracts and futures contracts
    Linked to the following assessments:
  • Implement different trading strategies using option contracts and/or futures contracts
    Linked to the following assessments:
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Assessments

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How you will be assessed

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Extra credits for synchronous lecture attendance:

I strongly encourage students to attend lectures via watching the live stream of the lecture (Webcast) each week because regular study may help their learning (i.e., avoiding the unstudied contents to accumulate up).

To record lecture attendance, I will use the "Attendance Module" on Moodle (see the "Lecture Attendance" Section on Moodle for the details). Students may receive one bonus point for each week's lecture attendance and these bonus points will be added to their final test mark (Note: the maximum total mark is 100).

Please note that students may still receive 100 marks for their final test without these extra credits if they perfectly answer all the test questions. Unlike our standard assessment components, we may have more “flexibility” on extra credits. For example, an individual student who is unable to attend the lectures as scheduled may email me and tell me their reasons along with some supporting documents, e.g., a clash with other papers, attending training or competition or a work commitment. Then I will consider waiving their absence. The purpose of extra credits is to encourage, not require, students to attend the lectures synchronously.

Content/Foundational Skill

Both critical-thinking and problem-solving questions will be included in the final test.

The critical-thinking questions (i.e., short essay questions) will be evaluated by Communication Skills, Professionalism and Innovation. There is an expectation that students demonstrate academic integrity when they attempt the assignments in this paper. Moreover, referencing academic research articles to answer the questions will be rewarded in terms of marks (But referencing non-academic websites, such as Investopedia, will not have a reward). The design is to motivate students to achieve effective academic reading. The critical-thinking questions also allow for the evaluation of effective academic reading by students as their answers will demonstrate their understanding of the concepts explored in the paper. And the short essay questions require students to demonstrate their business writing ability. For the problem-solving questions (i.e., calculation questions), students are required to show all their workings. These questions require students to perform calculations on data and then demonstrate their understanding of the numbers calculated, thus equipping students with numeracy skills/using data.

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The internal assessment/exam ratio (as stated in the University Calendar) is 100:0. There is no final exam. The final exam makes up 0% of the overall mark.

The internal assessment/exam ratio (as stated in the University Calendar) is 100:0 or 0:0, whichever is more favourable for the student. The final exam makes up either 0% or 0% of the overall mark.

Component DescriptionDue Date TimePercentage of overall markSubmission MethodCompulsory
1. Online Quizzes
30
  • Online: Submit through Moodle
2. Group Assignment 1: Financial Analyst Report
27 Apr 2023
5:00 PM
20
  • Online: Submit through Moodle
3. Final Test
2 Jun 2023
2:00 PM
30
  • Online: Submit through Moodle
4. Group Assignment 2: Stock Portfolio Construction
16 Jun 2023
5:00 PM
20
  • Online: Submit through Moodle
Assessment Total:     100    
Failing to complete a compulsory assessment component of a paper will result in an IC grade
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