10 cp Prerequisites BAFN200 Principles of Finance Teaching Organisation 3 hours per week for twelve weeks or equivalent.
This unit is the foundation for understanding investments in general portfolio management specifically and security analysis; it is thus an applied quantitative unit. This unit will cover the basic approach to the mathematics of finance and investment, different types of investment styles, investment strategies, modern portfolio theory and the various types of investments, their attributes, and the markets in which they are found and priced. Students will be required to revise Excel techniques early in the semester and will use the Haugen investment software for portfolio analysis and computing mean-variance efficient sets employing both the Markowitz and the single-index approach. Extensive coverage is given to the issues relating to the capital asset pricing model and the arbitrage pricing theory. In addition, students will need to understand clearly that no investment mechanism can exist outside its regulatory framework. Material regarding the investment regulatory authority [ASIC] requirements will overlay the entire course of study.