FINS5513: Investments

& Portfolio Selection

Course Overview
Term 3 2022
 Teaching Staff
 Lecturer in Charge: Dr. Luis Goncalves-Pinto
 Primary contact for administrative issues
 Email: l.goncalves-pinto@unsw.edu.au
 Teaching: Lecture weeks 4-6, 9-10
 Consultation: By appointment only. Moodle discussion forum.

 Lecturer: Dr. Benjamin Loos

 Email: b.loos@unsw.edu.au
 Teaching: Lecture weeks 1-3
 Consultation: Moodle discussion forum

Course Overview FINS5513 2

 Finance Study

Course Overview FINS5513 3

 Investment Electives
 A survey course for investment topics
 A basic theoretical framework
 Covers a lot of materials, and set stage for your electives
• Acts as a gateway

• Use the class to plan your studies with your career interests

 Electives
 FINS5517: Applied portfolio mgt and modelling
 FINS5541: Advanced investments and advanced funds mgt
 FINS5542: Applied funds management
 FINS5535: Derivatives and risk management techniques
 FINS5536: Fixed income securities and interest rate derivatives
 FINS5533: Real estate finance and investment
 FINS5523: Alternative asset classes
 FINS5566: Trading in financial securities
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 Prerequisite and
Assumed Knowledge
 Basic statistical analysis - must have:
 COMM5005 or ECON5248 or COMM5011 or equivalent
 Basic calculus and optimization
 Probability, distribution (mean/var/covar)
 Linear regression (OLS)
 Online statistics course: http://onlinestatbook.com/2/index.html

 Financial markets and instruments - should have:

 FINS5512 or equivalent
 30 hours to catch up

 Basic accounting (accounting ratios): 5 hrs

 Basic microeconomics (utility theory): 5 hrs
 Basic macroeconomics (monetary policy): 5 hrs
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 Assumed Knowledge:
FINS5512
 If you are in a degree program with FINS5512 as a required
course, you are strongly advised to take FINS5513 after you
have completed FINS5512 if you find this course difficult in
Lectures 1 and 2
 If you are in program 8413 (Financial Analysis) without the
equivalent of FINS5512, you must allocate more time to this
course beyond the official work load.
 Additional time required is approximately 30 to 50 hours

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 Approach to Teaching
 Course is administered via Moodle:
 Course announcements
 Course materials
 Assessment instructions and assessment (e.g. quizzes)
 Discussion Forum

 Course is designed to:

 Give you opportunities to practice (easy/intermediate/hard Qs)
 Provide experience with using Excel to solve problems
 Allow applied learning through real world examples and case
studies
 Provide real world applications of the theories learnt

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 Approach to Learning
 Multiple learning channels:
 Lecture and Lecture recording provided on Moodle
 Web-based learning support: practice exercises (at various
different difficulty levels), Excel sheets, practice quizzes
 Textbook references in the lecture notes
 PASS classes (weeks 2 - 10)
 Videos and further reading

 Must do
 Check Moodle frequently for new materials and course
announcements (announcements are also delivered via email)

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 Lectures
 Lecture format will be 2 x 2 hours per week and will occur in weeks 1-6, 9-
10
 There will be no lectures in weeks 7 and 8 due to iLabs and Mid-
Term Major Quiz
 There are 3 lecture streams during lecture weeks:
 F2F:
 Stream B, Mon & Wed 6pm-8pm Macauley Theatre (K-E15-1027)
 Online:
 Stream A, Tuesday & Thursday 6pm-8pm
 Stream C, Tuesday & Thursday 2pm-4pm
 Lectures will start promptly so we can comfortably get through
 Please do the assigned textbook and readings (and attempt weekly
example questions) before attending the lectures
 Please attend both lectures each week, as they follow sequentially
 Lecture recordings will be available
Course Overview FINS5513 9
 Videos, Further
Reading, Case Studies
 In response to student feedback, we have incorporated real
world case studies, videos and further reading into each week to
enhance the learning experience
 It would be advantageous to you to read and view as much
material as possible before attending each lecture
 The practical learning tools such as the case studies, excel
spreadsheets, videos and further reading are intended to apply
the concepts taught each week to real life major events in the
financial world
 They are intended to be enlightening and interesting to a
person wanting to enter the financial sector
 The supporting materials are not directly examinable, however
they provide useful examples to help understand core materials
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 Examples and Exercises
 It is useful to attempt example questions and weekly multiple
choice exercises before each week’s lecture so we can go
through them in class together
 All examples in the lecture slides will be available for you to
solve prior to the lecture
 Weekly multiple choice exercises and available for revision and
practice
 You do not need to hand anything in and it will not be marked
 The case studies themselves are not examinable, however the
major quiz and final exam will contain similar questions as those
in the case studies

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 iLabs
 The iLab will occur in two sessions in weeks 7 and 8 (no-lecture
weeks)
 There will be a practical simulation exercise using Factset and
actual security data - conducted online with take-home elements
 The simulation will be based on portfolio optimisation under a
Markowitz and CAPM framework
 Further details for the iLab assessment item will be uploaded to
Moodle later in the term

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 Assessment
 Online quizzes in weeks 3 and 5 (2 x 5% each = 10% total)
 Quiz 1 (week 3) covers lecture weeks 1-2
 Quiz 2 (week 5) covers lecture weeks 3-4
 10 questions, 20 minutes
 Most questions are drawn from the practice questions online
 Exact timing/coverage will be announced on Moodle

 iLabs: (10%)
 iLab 1 is in week 7
• Assessment is based on individual work, due in week 8 (5%)
 iLab 2 is in week 8
• Assessment is based on individual work, due in week 9 (5%)
 Details will be provided on Moodle

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 Assessment
 Ethics Modules: (5%)
 4 online modules

 Online
• Details and access to be provided via Moodle early in the
term
• Due week 10 (further details to be provided)
• Submission via Moodle: submit module completion receipts

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 Assessment
 Mid-Term Major Quiz (20%)
 All students (including those enrolled in the web class)
 Week 7
 2 hrs online
 Covers Lecture Weeks 1 through 6 inclusive
 Further detail to be provided on Moodle closer to time

 Final Exam (55%)

 Held during the UNSW Exam Period (date TBA)
• Check your own myUNSW for the date, time and venue
 Further details to be provided on Moodle closer to time

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 Textbook
 The textbook for the course is: 12th Edition

 You may use earlier versions of the text - up to the 11th edition.
However please always double check for content / examples /
references
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 Textbook
 McGraw Hill
 12ed print:
https://www.mheducation.com.au/ise-investments-9781260571158-aus
 12ed ebook
https://www.vitalsource.com/en-au/products/ise-ebook-online-access-for-
investments-bodie-v9781260590241
UNSW Bookshop
 (P) https://www.bookshop.unsw.edu.au/details.cgi?ITEMNO=9781260571158

 (ebook) https://unswbookshop.vitalsource.com/products/-v9781260590241

 Other Bookshops (Physical/online) or second hand

 Check/compare price (check currency!), conditions, availabilities
etc

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 Study Tips
 The course provides a lot of material
 Compulsory: lectures and textbook readings
 For extra study
 Mini case studies
 Excel files
 Videos explaining core topics in detail
 Further reading on applied topics
 Exercises in form of (unassessed) Moodle online quizzes
• Provided by textbook authors
 Use discussion forums, attend PASS and/or use consultation

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 Contact and Discussion
Forum
 All course related questions MUST be posted on the Moodle
discussion forum
 There will be separate forums:
 Forums are at the top of the Moodle page
 (1) Course Administration; (2) Lecture Content (3) iLabs

 All discussion forums will be monitored

 You will receive an answer promptly (provided you place the
question in the correct forum)
 Students are strongly encouraged to discuss each others’
questions. Lecturers will provide guidance to student
discussions
 Contact regarding private matters can still be emailed (however
special consideration etc should all go through formal channels)
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