FINAN508-23B (HAM)

Investments and Financial Markets

15 Points

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The University of Waikato
Academic Divisions
Division of Management
School of Accounting, Finance and Economics

Staff

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Convenor(s)

Lecturer(s)

Administrator(s)

: denise.martin@waikato.ac.nz

Placement/WIL Coordinator(s)

Tutor(s)

Student Representative(s)

Lab Technician(s)

Librarian(s)

: em.pooley@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 will discuss certain advanced topics in investment, such as fixed-income securities (including the bond evaluation and the term structure of interest), security analysis (including equity valuation models and financial statement analysis), and derivatives securities (including valuation and trading strategies).
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How this paper will be taught

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Lectures

The lectures will be delivered in FLEXI. I encourage in-person attendance. Students can also join online via Zoom for a live lecture broadcast. Students are strongly encouraged to attend lectures in person or watch the live stream of the lecture 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. The lecturer has an extra credit policy for in-person and online live attendance (see the Assessment section for the details).

The lecture will be recorded, 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 per week (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 they can concentrate on understanding the course materials during the lectures.

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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
    Linked to the following assessments:
  • Value bonds
    Linked to the following assessments:
  • Value shares
    Linked to the following assessments:
  • Develop and evaluate trading strategies pertaining to stocks and bonds
    Linked to the following assessments:
  • Describe trading strategies pertaining to options contracts and 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 in person or watch the live stream of the lecture each week because the regular study may help their learning (i.e., avoiding the unstudied contents from accumulating).

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 a bonus point (0.5 mark) for each week's lecture attendance, and these bonus points will be added to Final Test. The maximum mark for Final Test is 100. Students may still receive 100 marks for their tests without these extra credits if they answer all the test questions perfectly.

NOTE: Students who can not attend scheduled lectures synchronously but still want to receive extra credits:

Unlike our standard assessment components, we may have some “flexibility” on extra credits. If you are unable to attend the lectures as scheduled (either in person or online) and still want to receive extra credits, you may request special consideration. The criteria for determining if the request is reasonable will be based on supporting evidence or documentation. After your request is approved, you will be further required to complete summary notes to reflect on what you have learned from the most recent topic in FINAN508 and submit that to the lecturer within one week. The summary notes are expected to include the following components:

  • Comment on what you thought was the most important aspect of the week’s topic;
  • Comment on what surprised you or excited you from the week’s topic;
  • Describe how some aspects of the week’s topic apply in the real world or in your daily life;
  • Present and discuss some puzzles that the week’s topic has helped you to understand better.

Content/Foundational Skill

Both critical-thinking and problem-solving questions will be included in 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
7 Sep 2023
5:00 PM
20
  • Online: Submit through Moodle
3. Final Test
9 Oct 2023
3:00 PM
30
  • Online: Submit through Moodle
4. Group Assignment 2: Stock Portfolio Construction
27 Oct 2023
6:00 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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