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Advanced Investments (FNCE40002)
HonoursPoints: 12.5On Campus (Parkville)
About this subject
- Overview
- Eligibility and requirements
- Assessment
- Dates and times
- Further information
- Timetable(opens in new window)
Contact information
Semester 1
Overview
Availability | Semester 1 |
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Fees | Look up fees |
At a theoretical level, the subject teaches principles of strategic and tactical asset allocation, and their potential impact on market-wide phenomena such as asset prices and trading volume (“asset pricing theory”). At the practical level, the subject provides students with opportunities to attempt implementing investment choices in purposely controlled online markets. Students will experience the effect of their actions on commonly used performance evaluation statistics. Mistakes will be put into perspective against recent advances in behavioural finance. Special attention will be paid to market-wide effects of such mistakes, if they exist, and whether these are easily recognisable in real-world financial markets. Lastly, students will investigate to what extent and how trading can be automated (algorithmic trading). Students with programming background (Python) have the option to test their algorithms live in controlled online markets.
Intended learning outcomes
On successful completion of this subject students should be able to:
- Put into practice commonly used techniques in tactical and strategic asset allocation;
- Understand to what extent common actions and mistakes impact market-wide phenomena such as prices and volume;
- Recognise and avoid (for oneself and others) common behavioural biases in the context of investments;
- Learn what forces behind prices and volume that one cannot see in historical data, by confronting theory with data from controlled experiments;
- Evaluate to what extent (and for those with programming skills, how) investment can be automated;
- Form an informed opinion about major issues in investments, such as portfolio performance evaluation, the efficient markets hypothesis, dark markets, and algorithmic trading.
Generic skills
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High level of development: written communication; interpretation and analysis; critical thinking.
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Moderate level of development: collaborative learning; problem solving; team work; application of theory to practice; accessing data and other information from a range of sources.
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Some level of development: oral communication; statistical reasoning; synthesis of data and other information; evaluation of data and other information; use of computer software.
Last updated: 3 November 2022
Eligibility and requirements
Prerequisites
Admission into BH-COM and
Code | Name | Teaching period | Credit Points |
---|---|---|---|
FNCE30001 | Investments |
Semester 1 (On Campus - Parkville)
Semester 2 (On Campus - Parkville)
|
12.5 |
Corequisites
None
Non-allowed subjects
None
Recommended background knowledge
Please refer to Prerequisites and Corequisites.
Inherent requirements (core participation requirements)
The University of Melbourne is committed to providing students with reasonable adjustments to assessment and participation under the Disability Standards for Education (2005), and the Assessment and Results Policy (MPF1326). Students are expected to meet the core participation requirements for their course. These can be viewed under Entry and Participation Requirements for the course outlines in the Handbook.
Further details on how to seek academic adjustments can be found on the Student Equity and Disability Support website: http://services.unimelb.edu.au/student-equity/home
Last updated: 3 November 2022
Assessment
Additional details
- Two assignments not more than 500 words each, first due by end of week 6 and second due end of week 12, (15% each for total of 30%)
- Three on-line trading laboratory tasks, with reports of no more than 500 words each, during 3rd, 5th and 7th week (10% each for total of 30%)
- Three self-paced online decision tasks, with reports of no more than 250 words each, during 2nd (2 tasks) and 9th (1 task) week (5% each for total of 15%)
- 90 minute end-of-semester exam of no more than 750 words, end of semester (25%)
Last updated: 3 November 2022
Dates & times
- Semester 1
Principal coordinator Peter Bossaerts Mode of delivery On Campus (Parkville) Contact hours Three hours of lectures and seminars per week Teaching period 27 February 2017 to 28 May 2017 Last self-enrol date 10 March 2017 Census date 31 March 2017 Last date to withdraw without fail 5 May 2017 Assessment period ends 23 June 2017 Semester 1 contact information
Last updated: 3 November 2022
Further information
- Texts
Prescribed texts
You will be advised of prescribed texts by your lecturer.
- Related Handbook entries
This subject contributes to the following:
Type Name Course Master of Commerce (Accounting)
Last updated: 3 November 2022