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Advanced Investments (FNCE40002)
HonoursPoints: 12.5Dual-Delivery (Parkville)
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About this subject
- Overview
- Eligibility and requirements
- Assessment
- Dates and times
- Further information
- Timetable(opens in new window)
Contact information
Semester 1
Joachim Inkmann: jinkmann@unimelb.edu.au
Overview
Availability | Semester 1 - Dual-Delivery |
---|---|
Fees | Look up fees |
This subject teaches principles of advanced portfolio choice and asset pricing. The subject emphasizes the close link between theory and empirical analysis in this important area of finance. At the theoretical level, the subject introduces optimal portfolios for households and institutional investors like insurance companies and pension funds. While households are assumed to receive utility from terminal wealth or intermediate consumption, institutional investors consider their liabilities when forming an optimal asset allocation. The subject derives the asset pricing implications of portfolio choice. At the practical level, emphasis is placed on how to implement and evaluate optimal portfolio choice strategies and empirical tests of asset pricing models. The important role of asset return predictability for long-term investors is discussed and critically evaluated. The subject highlights typical biases that may prevent market participants from behaving optimally. The subject lays the foundation for a successful research essay in the fields of portfolio choice and asset pricing.
Intended learning outcomes
On successful completion of this subject students should be able to:
- Put into practice commonly used techniques of static and dynamic portfolio choice;
- Critically evaluate the performance of investment managers
- Understand the implications of return predictability for long-term investors;
- Question the empirical evidence on return predictability;
- Understand the asset pricing implications of portfolio choice models;
- Test whether observed asset prices are consistent with asset pricing theory;
- Recognize and avoid common behavioural biases in the context of investments.
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: 31 January 2024
Eligibility and requirements
Prerequisites
Admission into the BH-COM Bachelor of Commerce (Degree with Honours)
AND
Code | Name | Teaching period | Credit Points |
---|---|---|---|
FNCE30001 | Investments |
Semester 1 (Dual-Delivery - Parkville)
Semester 2 (Dual-Delivery - 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: 31 January 2024
Assessment
Description | Timing | Percentage |
---|---|---|
Individual Assignment
| Week 5 | 20% |
Group Assignment (up to 4 students)
| Week 10 | 20% |
End-of-semester examination
| During the examination period | 60% |
Last updated: 31 January 2024
Dates & times
- Semester 1
Principal coordinator Joachim Inkmann Mode of delivery Dual-Delivery (Parkville) Contact hours Three hours of lectures and seminars per week Total time commitment 170 hours Teaching period 28 February 2022 to 29 May 2022 Last self-enrol date 11 March 2022 Census date 31 March 2022 Last date to withdraw without fail 6 May 2022 Assessment period ends 24 June 2022 Semester 1 contact information
Joachim Inkmann: jinkmann@unimelb.edu.au
Last updated: 31 January 2024
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) - Available to Study Abroad and/or Study Exchange Students
This subject is available to students studying at the University from eligible overseas institutions on exchange and study abroad. Students are required to satisfy any listed requirements, such as pre- and co-requisites, for enrolment in the subject.
Last updated: 31 January 2024