Course Title: Analyse financial markets and information

Part B: Course Detail

Teaching Period: Term1 2008

Course Code: ACCT5214C

Course Title: Analyse financial markets and information

School: 650T TAFE Business

Campus: City Campus

Program: C5179 - Diploma of Financial Services

Course Contact : Gowri Raviganesh

Course Contact Phone: 61 3 9925 1377

Course Contact Email:Gowri.raviganesh@rmit.edu.au


Name and Contact Details of All Other Relevant Staff

Nominal Hours: 60

Regardless of the mode of delivery, represent a guide to the relative teaching time and student effort required to successfully achieve a particular competency/module. This may include not only scheduled classes or workplace visits but also the amount of effort required to undertake, evaluate and complete all assessment requirements, including any non-classroom activities.

Pre-requisites and Co-requisites

NONE

Course Description

This unit covers the skills and knowledge required to access, interpret and report on financial markets. It covers underpinning knowledge and skills in investment products and management.
Its aim is to introduce students to modern investment theories and practices, including investment evaluation theories and techniques for a range of financial assets. It will also entail an investigation of the portfolio management practices and cover current industry practice in this area.


National Codes, Titles, Elements and Performance Criteria

National Element Code & Title:

FNSFMKT501A Analyse financial markets and information

Element:

FNSFMKT501A/01 Determine the operations within financial markets

Performance Criteria:

The different financial market sectors that occur within the financial market are identified <o:p></o:p>

The relationship between financial market sectors, participants and the economy are identified<o:p></o:p>

Element:

FNSFMKT501A/02 Access market information

Performance Criteria:

Aims and objectives of financial markets analysis are clearly established in accordance with client and organisational requirements <o:p></o:p>

Clear and quantifiable parameters are set for the identification and sourcing of information in accordance with legislative and organisational requirements <o:p></o:p>

Market information and data is accessed and evaluated in terms of validity, reliability and relevance in accordance with identified analysis requirement <o:p></o:p>

Methods of analysis, testing, assessment and evaluation are appropriate to the information and the goals and objectives of the research<o:p></o:p>

Element:

FNSFMKT501A/03 Interpret trends and market developments

Performance Criteria:

Quantitative and/or qualitative analysis is undertaken of comparative market data using standard financial analysis techniques <o:p></o:p>

Economic trends and market developments are identified and evaluated in terms of potential implications and impacts on business <o:p></o:p>

Risk contingencies are identified and quantified in accordance with industry standards, precedents and techniques <o:p></o:p>

Sound inductive reasoning is applied to ensure consistency of interpretations based on available information<o:p></o:p>

Element:

FNSFMKT501A/04 Report on market data

Performance Criteria:

Market performance, trends and risk analyses are prioritised and prepared for presentation in the required format, style and structure <o:p></o:p>

Conclusions are verified, current and sufficiently detailed to meet identified analysis requirements <o:p></o:p>

Report is prepared and distributed to relevant persons within agreed timeframes in accordance with organisational requirements <o:p></o:p>

The use of market information and data is in accordance with the relevant legal and ethical constraints and organisational requirements<o:p></o:p>


Learning Outcomes


As per the performance elements above.


Details of Learning Activities

In this course students will undertake a range of learning activities, which will include:
An initial introduction to topics and techniques via a teacher directed learning, tutorial-based discussion groups, role-plays to explore individual reactions to particular situations, a group project (case-study, tutorial exercises in order to develop competency including underpinning skills and knowledge.


Teaching Schedule

Week beginningTopicsTutorial/class work
Week 1 – 11 Feb1. The Investment Environment Introduction to investment
-Introduction of financial mathematics
Week 2 – 18 Feb

Topic 1 Continued

2. The investment decision

Analysing the Risk and Return of Investments.
- Summary of financial mathematics.
Week 3 – 25 Feb2. The investment decisionAnalysing the Risk and Return of Investments.
-measures of central tendency and dispersion.
Week 4 – 3 Mar3. Interpret trends and market developments - regression & correlation, time-series analysis
Week 5 – 10 Mar3. Interpret trends and market developments The investment management process and strategy in the portfolio construction process
Week 6 – 17 Mar4. Principles of investing /RevisionThe investment management process and strategy in the portfolio construction process
                                       Easter Break 20th to 26th March 
Week 7 – 31 MarTest 1 
Week 8 – 7 April4. Principles of investing The investment management process and strategy in the portfolio construction process
Week 9 – 14 April4. Principles of investing Process and strategy in the portfolio construction process
Week 10 – 21 April5. Asset Classes Process and strategy in the portfolio construction process
Technical & fundamental analysis
Week 11 – 28 April5. Asset Classes Outline the concepts of modern portfolio theory and asset pricing models. Technical & fundamental analysis
Week 12 – 5 May5. Asset Classes Modern portfolio theory and asset pricing models.
Week 13 – 12 May6. Managed Funds Describe styles used in portfolio management
Week 14 – 19 May6. Managed Funds
Portfolio management (Due date for Assignment)
Week 15 – 26 May7. Derivatives
Portfolio management
Week 16 – 2 JuneRevision 
Week 17 – 9 JuneTest 2 


Learning Resources

Prescribed Texts

There is no prescribed textbook for this course.


References

• Suggested References

Reilly, Frank K. and Edgar A. Norton, Investment (6th Edition), The Dryden Press, 1999.

Bishop, Crapp, Faff and Twite, Corporate Finance (4th Edition), Holt, Rinehart and Winston, 1993/2000 (BCFT)

• Additional Reading
Brailsford and Heaney, Investments – Concepts and Applications

Bodie, Kane and Marcus, Investment (Second Edition), Richard D. Irwin Publishers, 1993, Illinois

Burton G. Malkiel, A Random Walk Down Wall Street,( 6th Edition), W.W.Norton & Co, 1996.

Reilly and Brown, Investment Analysis and Portfolio Management, 5th Edition,
Dryden Press, 1997.


Other Resources

• Print-based resources
There is no prescribed textbook for this course. Extensive course notes and materials in addition to lecture overheads and tutorial questions will be available of the learning hub online@rmiit.edu.au  from the commencement of the course. This includes tutorial discussion questions, short answer questions and problem sets, self-directed exercises, some solutions and core notes for each topic.

• Other prescribed requirements:
You will be required to have access to a financial calculator within the course. Questions in the examination may be based on your having access to a financial calculator to perform financial calculations.

Students must be very familiar with the course material and its entire contents. Additional reading is required from contemporary sources and in the business and financial press. Students are required to undertake their own reading and research of the course independently.


Overview of Assessment

Assessment will incorporate a variety of methods including class tests, a group assignment and an exam.
Class tests may comprise multiple choice, true/false questions and calculations.
The group assignment may cover the operation, features, developments & trends and the evaluation of managed investment funds.
The exam will be closed book and may comprise multiple choice, calculations and short answer questions. A formula sheet will be provided.

You will receive ongoing feedback on your progress in the course. Feedback on assessment will be given in a timely manner. You will be informed about how to improve your performance in the competency/course and what you need to do to be deemed competent or to gain a pass in the assessment.


Assessment Tasks

Assessment for this course takes the following form:
1. Class test: 20%. This will be held during week 7
2. Group assignment: 20% This will be held during week 14
3. Test 2: 60% This will be held during week 17

The assessment will consist of:
The class test will be of two (2) hours duration and comprise multiple choice, true/false questions and calculations. The class test will be held during week 7 or 8. The purpose of the test is to enable the subject coordinator to check students’ understanding of the fundamental concepts in investments and to provide some early feedback to students.

A group assignment on the operation, features, developments & trends and the evaluation of managed investment funds. It will assess all performance elements of the course.

The final examination will be of three (3) hours duration and be closed book. It will comprise multiple choice, true and false, calculations and short answer questions. A formula sheet will be provided.

The final mark is based on all assessment components.  Students are assessed against all the performance elements of the course and must satisfactorily pass all performance criteria. To receive a pass for this course a student must also achieve 50% overall and receive a 50% result for test 2.


Assessment Matrix

 TestGroup assignmentClosed book examination
Determine the operations within financial markets YYY
Access market information YYY
Interpret trends and market developments  YY
Report on market data   Y

Course Overview: Access Course Overview