Faculty of Business and Law

School: Business

This unit information may be updated and amended immediately prior to semester. To ensure you have the correct outline, please check it again at the beginning of semester.

  • Unit Title

    Investment Finance II
  • Unit Code

    ECF2226
  • Year

    2015
  • Enrolment Period

    1
  • Version

    1
  • Credit Points

    15
  • Full Year Unit

    N
  • Mode of Delivery

    On Campus
    Online

Description

Risk and return are fundamental to investment decisions. This unit involves developing a conceptual framework and a practical set of skills that will allow the measurement of both risks and returns for a range of different investments including shares and fixed interest securities. As part of this conceptual framework, there will be coverage of modern portfolio theory, the capital asset pricing model, the efficient market hypothesis, and recent developments in the area of behavioural finance.

Prerequisite Rule

Students must pass 1 units from ECF1120

Learning Outcomes

On completion of this unit students should be able to:

  1. Apply this conceptual understanding to the practical measurement of risk and return for investments such as shares and fixed interest securities.
  2. Explain the major conceptual frameworks that are used in finance in the measurement of risk and return.

Unit Content

  1. Rates of return.
  2. The measurement of risk.
  3. Portfolio theory.
  4. Capital asset pricing model.
  5. Performance measurement.
  6. Introduction to derivatives and option pricing
  7. The efficient market hypothesis.
  8. Behavioural finance.
  9. Bond valuation and yield curves.
  10. Duration and immunisation.

Additional Learning Experience Information

On-campus students attend a two hour lecture and a one hour tutorial each week. Lectures are used to introduce modern portfolio theory, various ways to measure risks and returns of different asset classes, and the emerging area of behavioural finance. Ample provision is made within the lectures for time for students to undertake short individual and small group activities to solidify understanding of the key concepts.

The tutorial sessions are used to review the solution of problems and exercises that are based upon the material covered during lectures. Students participate by asking questions, offering solutions, and working in small groups.

Off-campus students are supplied with unit materials accessed via Blackboard. These materials include lecture notes, electronic versions of the internal lectures, and the solutions to the weekly tutorial exercises and problems.

Assessment

GS1 GRADING SCHEMA 1 Used for standard coursework units

Students please note: The marks and grades received by students on assessments may be subject to further moderation. All marks and grades are to be considered provisional until endorsed by the relevant Board of Examiners.

ON CAMPUS
TypeDescriptionValue
TestOnline Tests15%
AssignmentAssignment25%
Examination ^Final Examination60%
ONLINE
TypeDescriptionValue
TestOnline Tests15%
AssignmentAssignment25%
Examination ^Final Examination60%

^ Mandatory to Pass

Text References

  • Gitman, L. J., Joehnk, M. D., Smart, S., Juchau, R. H., Ross, D. G. & Wright, S. (2011). Fundamentals of investing (3rd ed.). Frenchs Forest: Pearson Australia.
  • Brailsford, T., Heaney, R. & Bilson, C. (2011). Investments: Concepts and applications (4th ed.). Melbourne: Cengage Learning Australia.
  • Petty, W., Titman, S., Keown, A., Martin, J., Martin, P., Burrow, M.,  Nguyen, H. (2012). Financial management: Principles and applications (6th ed.). Australia: Pearson.
  • Jones, C. P. (2013). Investments: Analysis and management (12th ed.). Hoboken, NJ: John Wiley & Sons.
  • ^ Bodie, Z., Drew, M., Basu, A., Kane, A., & Marcus, A.J. (2013). Principles of investments. North Ryde, NSW: McGraw Hill Education.

^ Mandatory reference


Disability Standards for Education (Commonwealth 2005)

For the purposes of considering a request for Reasonable Adjustments under the Disability Standards for Education (Commonwealth 2005), inherent requirements for this subject are articulated in the Unit Description, Learning Outcomes and Assessment Requirements of this entry. The University is dedicated to provide support to those with special requirements. Further details on the support for students with disabilities or medical conditions can be found at the Access and Inclusion website.

Academic Misconduct

Edith Cowan University has firm rules governing academic misconduct and there are substantial penalties that can be applied to students who are found in breach of these rules. Academic misconduct includes, but is not limited to:

  • plagiarism;
  • unauthorised collaboration;
  • cheating in examinations;
  • theft of other students' work;

Additionally, any material submitted for assessment purposes must be work that has not been submitted previously, by any person, for any other unit at ECU or elsewhere.

The ECU rules and policies governing all academic activities, including misconduct, can be accessed through the ECU website.

ECF2226|1|1

Faculty of Business and Law

School: Business

This unit information may be updated and amended immediately prior to semester. To ensure you have the correct outline, please check it again at the beginning of semester.

  • Unit Title

    Investment Finance II
  • Unit Code

    ECF2226
  • Year

    2015
  • Enrolment Period

    2
  • Version

    1
  • Credit Points

    15
  • Full Year Unit

    N
  • Mode of Delivery

    On Campus
    Online

Description

Risk and return are fundamental to investment decisions. This unit involves developing a conceptual framework and a practical set of skills that will allow the measurement of both risks and returns for a range of different investments including shares and fixed interest securities. As part of this conceptual framework, there will be coverage of modern portfolio theory, the capital asset pricing model, the efficient market hypothesis, and recent developments in the area of behavioural finance.

Prerequisite Rule

Students must pass 1 units from ECF1120

Learning Outcomes

On completion of this unit students should be able to:

  1. Apply this conceptual understanding to the practical measurement of risk and return for investments such as shares and fixed interest securities.
  2. Explain the major conceptual frameworks that are used in finance in the measurement of risk and return.

Unit Content

  1. Rates of return.
  2. The measurement of risk.
  3. Portfolio theory.
  4. Capital asset pricing model.
  5. Performance measurement.
  6. Introduction to derivatives and option pricing
  7. The efficient market hypothesis.
  8. Behavioural finance.
  9. Bond valuation and yield curves.
  10. Duration and immunisation.

Additional Learning Experience Information

On-campus students attend a two hour lecture and a one hour tutorial each week. Lectures are used to introduce modern portfolio theory, various ways to measure risks and returns of different asset classes, and the emerging area of behavioural finance. Ample provision is made within the lectures for time for students to undertake short individual and small group activities to solidify understanding of the key concepts.

The tutorial sessions are used to review the solution of problems and exercises that are based upon the material covered during lectures. Students participate by asking questions, offering solutions, and working in small groups.

Off-campus students are supplied with unit materials accessed via Blackboard. These materials include lecture notes, electronic versions of the internal lectures, and the solutions to the weekly tutorial exercises and problems.

Assessment

GS1 GRADING SCHEMA 1 Used for standard coursework units

Students please note: The marks and grades received by students on assessments may be subject to further moderation. All marks and grades are to be considered provisional until endorsed by the relevant Board of Examiners.

ON CAMPUS
TypeDescriptionValue
TestOnline Tests15%
AssignmentAssignment25%
Examination ^Final Examination60%
ONLINE
TypeDescriptionValue
TestOnline Tests15%
AssignmentAssignment25%
Examination ^Final Examination60%

^ Mandatory to Pass

Text References

  • Gitman, L. J., Joehnk, M. D., Smart, S., Juchau, R. H., Ross, D. G. & Wright, S. (2011). Fundamentals of investing (3rd ed.). Frenchs Forest: Pearson Australia.
  • Brailsford, T., Heaney, R. & Bilson, C. (2011). Investments: Concepts and applications (4th ed.). Melbourne: Cengage Learning Australia.
  • Petty, W., Titman, S., Keown, A., Martin, J., Martin, P., Burrow, M.,  Nguyen, H. (2012). Financial management: Principles and applications (6th ed.). Australia: Pearson.
  • Jones, C. P. (2013). Investments: Analysis and management (12th ed.). Hoboken, NJ: John Wiley & Sons.
  • ^ Bodie, Z., Drew, M., Basu, A., Kane, A., & Marcus, A.J. (2013). Principles of investments. North Ryde, NSW: McGraw Hill Education.

^ Mandatory reference


Disability Standards for Education (Commonwealth 2005)

For the purposes of considering a request for Reasonable Adjustments under the Disability Standards for Education (Commonwealth 2005), inherent requirements for this subject are articulated in the Unit Description, Learning Outcomes and Assessment Requirements of this entry. The University is dedicated to provide support to those with special requirements. Further details on the support for students with disabilities or medical conditions can be found at the Access and Inclusion website.

Academic Misconduct

Edith Cowan University has firm rules governing academic misconduct and there are substantial penalties that can be applied to students who are found in breach of these rules. Academic misconduct includes, but is not limited to:

  • plagiarism;
  • unauthorised collaboration;
  • cheating in examinations;
  • theft of other students' work;

Additionally, any material submitted for assessment purposes must be work that has not been submitted previously, by any person, for any other unit at ECU or elsewhere.

The ECU rules and policies governing all academic activities, including misconduct, can be accessed through the ECU website.

ECF2226|1|2