Course Title: Analyse financial markets and information

Part B: Course Detail

Teaching Period: Term2 2009

Course Code: ACCT5239C

Course Title: Analyse financial markets and information

School: 650T TAFE Business

Campus: City Campus

Program: C5205 - 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 describes the performance outcomes, skills and knowledge required to monitor and assess markets and information, analyse economic trends and developments, and provide market reports.
No licensing, legislative, regulatory or certification requirements apply to this unit at the time of endorsement.

This unit is delivered using a blend of classroom based and self -paced learning activities.
 

If you are undertaking this course in Melbourne from semester 2, 2012 onwards your teacher will advise you if you require access to a computer for the course. It is recommended that you have access to a mobile computing device to allow greater flexibility in terms of where you can work on campus outside class times.


National Codes, Titles, Elements and Performance Criteria

National Element Code & Title:

FNSFMKT501B Analyse financial markets and information

Element:

FNSFMKT501B/01 Determine the operations within financial markets

Performance Criteria:

· The different financial market sectors that occur within the financial market are identified
· The relationship between financial market sectors, participants and the economy are identified

Element:

FNSFMKT501B/02 Access market information

Performance Criteria:

· Aims and objectives of financial markets analysis are clearly established in accordance with client and organisational requirements
· Clear and quantifiable parameters are set for the identification and sourcing of information in accordance with legislative and organisational requirements
· Market information and data is accessed and evaluated in terms of validity, reliability and relevance in accordance with identified analysis requirement
· Methods of analysis, testing, assessment and evaluation are appropriate to the information and the goals and objectives of the research

Element:

FNSFMKT501B/03 Interpret trends and market developments

Performance Criteria:

· Quantitative and/or qualitative analysis is undertaken of comparative market data using standard financial analysis techniques
· Economic trends and market developments are identified and evaluated in terms of potential implications and impacts on business
· Risk contingencies are identified and quantified in accordance with industry standards, precedents and techniques
· Sound inductive reasoning is applied to ensure consistency of interpretations based on available information

Element:

FNSFMKT501B/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
· Conclusions are verified, current and sufficiently detailed to meet identified analysis requirements
· Report is prepared and distributed to relevant persons within agreed timeframes in accordance with organisational requirements
· The use of market information and data is in accordance with the relevant legal and ethical constraints and organisational requirements


Learning Outcomes



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 1. The Investment Environment Introduction to investment
-Introduction of financial mathematics
Week 2

Topic 1 Continued, 2. The investment decision

Analysing the Risk and Return of Investments.
- Summary of financial mathematics.
Week 3 2. The investment decisionAnalysing the Risk and Return of Investments.
-measures of central tendency and dispersion.
Week 4 3. Interpret trends and market developments - regression & correlation, time-series analysis
Week 5 3. Interpret trends and market developments The investment management process and strategy in the portfolio construction process
Week 6 4. Principles of investing /RevisionThe investment management process and strategy in the portfolio construction process
Week 7 4. Principles of investing
 
Week 8 Test 1 The investment management process and strategy in the portfolio construction process
Week 9 4. Principles of investing,  Assignment Process and strategy in the portfolio construction process
Week 10 5. Asset Classes Process and strategy in the portfolio construction process
Technical & fundamental analysis
Week 11 –5. Asset Classes Outline the concepts of modern portfolio theory and asset pricing models. Technical & fundamental analysis
Week 12 5. Asset Classes Modern portfolio theory and asset pricing models.
Week 13 6. Managed Funds Describe styles used in portfolio management
Week 14 6. Managed Funds
Portfolio management (Due date for Assignment)
Week 15 –7. Derivatives
Portfolio management
Week 16 Revision 
Week 17 Test 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

Students must demonstrate an understanding of all elements of competency to be deemed competent.

A range of assessment methods are used to assess practical skills and knowledge.

Critical aspects of assessment

Evidence of the following is essential

• interpret and use economic concepts
• identify market participants, economic trends and market development and monitor and evaluate changes in market conditions using a range of data sources
• work within legal and ethical constraints and access market information and produce reports using relevant data analysis methods and techniques
• formulate and draw effective conclusions from the correct interpretation of data analysis.


You are required to complete 3 Assessments tasks comprising of two tests and one group assignment. You must successfully complete all 3 tasks to be deemed competent in this unit.  You will receive feedback on each assessment task that will inform you whether you are competent or not and how well you are performing. Once competent in all elements of the unit you receive a competency grading.


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.   Grading for this course is based on the grade criteria below.

Course Grade Criteria
HD > = 80 High Distinction
DI 70 - 79 Distinction
CR 60 - 69 Credit
PA 50 - 59 Pass
NN < 50 Fail
DNS Did Not Submit
NYC Not Yet Competent


Assessment Matrix

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

Course Overview: Access Course Overview