Unit Information and Learning Guide
Trimester 1, 2013
This information should be read in conjunction with the online learning materials which can be found on your MyUnits page.
Name: Muammer Wali
School: School of Management and Governance
Contact details: M.Wali@murdoch.edu.au
© Published by Murdoch University, Perth, Western Australia, April 2013.
This publication is copyright. Except as permitted by the Copyright Act no part of it may in any form or by any electronic, mechanical, photocopying, recording or any other means be reproduced, stored in a retrieval system or be broadcast or transmitted without the prior written permission of the publisher.
Information about the unit
How to study this unit
Resources for the unit
The Investment Environment
Asset Classes and Financial Instruments
How Securities Are Traded
Mutual funds and other investment companies
Introduction to Risk, Return, and the historical record
21 Chapter 6
Risk Aversion and Capital Allocation to Risky Assets
22 Chapter 7
Optimal Risky Portfolios
The capital asset pricing Model
The Efficient Market Hypothesis
Behavioural Finance and Technical Analysis
Macroeconomic and Industry Analysis
Equity Valuation Models
Financial Statement Analysis
Portfolio Performance evaluation
The Theory of Active Portfolio Management
Information about the unit
In today’s world, investors are more concerned with the issue of how to generate additional income through their investment activities. They hope to do so with the lowest level of risk. To achieve this goal investors have to make good investment decisions.
In this unit, we provide an introduction to the complex environment facing the Australian investment community today as well as the valuation of various financial assets. We also look at the selection of financial assets that will be included in a portfolio. These two tasks are known as security analysis and portfolio management. They are two major components of the investment decision-making process.
The discussion of the above process includes topics such as the determination of risk and return for individual assets, the role of utility theory in investor choice, macroeconomic and industry analysis, fundamental and technical analysis, portfolio theory and the selection of ex ante optimal portfolios. The determination of equilibrium in capital market will also be explained using different asset pricing models. We also discuss the issue of market efficiency which is at the heart of all modern financial theories. Finally, we also look at how portfolio performance is evaluated using different performance evaluation measures.
You will need to have completed BUS224 Corporate Finance as a pre-requisite for this unit.
Aims of the unit
The broad aims of this unit are to:
1. Examine and understand the trading environment for equity securities; 2. Explore the factors which determine equity value and to apply equity valuation techniques; 3. Understand the underlying theories of investment; and 4. Examine and evaluate portfolio strategies.
Learning outcomes for the unit
On successful completion of the unit you should be able to:
1. Read the financial pages of most newspapers and understand the importance of each piece of information; 2. Communicate financial concepts utilising...
Please join StudyMode to read the full document