Also refer to the MCom + MIB Student Guide

Description

This unit provides an understanding of the theory, empirical evidence and practice of security selection. Models of security pricing are reviewed during the first weeks of the semester. Techniques are then considered to enable the student to select superior equity investments. The semester concludes with a review of investment in fixed interest securities.

During the semester student teams utilise these concepts and methods to select a range of securities in an investment simulation. At the end of the semester each team presents both verbal and written reports on their selections. Use of the Internet is integrated into the security selection task via links to Australian and international data sources.

The unit allows students with some finance knowledge to review basic theoretical and empirical concepts relating to security selection. For students with a more detailed understanding of the theoretical underpinnings of finance, the investment simulation provides an opportunity to extend their understanding of the operation of financial markets.

Topics

• Securities Trading
• Asset Returns
• Risk and Risk Aversion
• Capital Asset Pricing Model
• Arbitrage Pricing Theory
• Market Efficiency
• Empirical Evidence on Security Returns
• Macroeconomic/Industry Factors
• Equity Pricing
• Firm Characteristics
• Bond Returns
• Investment Report