• Class Number 2442
  • Term Code 2930
  • Class Info
  • Unit Value 6 units
  • Mode of Delivery In Person
    • Dr Kun Li
    • Dr Kun Li
  • Class Dates
  • Class Start Date 25/02/2019
  • Class End Date 31/05/2019
  • Census Date 31/03/2019
  • Last Date to Enrol 04/03/2019
SELT Survey Results

Investment is designed to prepare students for designing investment portfolios. It covers duties to clients, types of investment products, explores links between investment risk and return, introduces tools for use in portfolio construction, brings in analysis of fixed income products and introduces techniques to evaluate past investment performance.

Learning Outcomes

Upon successful completion, students will have the knowledge and skills to:

  1. Demonstrate an understanding of core investments theory;
  2. Demonstrate a knowledge of the issues associated with the application of investments theory in a practical setting:
  3. Be able to perform in group environments; and,
  4. Be effective in communicating the results of empirical research.

Research-Led Teaching

This course will cover methods which are applicable in both a research and practical context. Examples will be provided during the course of the semester which will demonstrate the practical application of research based models.

Bodie, Z., Kane, A. and Marcus, A., (2018), Investments 11th Ed., Mc-Graw Hill, New York.

CFA Institute Code of Ethics and Standards of Professional Conduct  http://www.cfapubs.org/doi/pdf/10.2469/ccb.v2014.n6.1

Brailsford, T., Heaney, R. and Bilson, C. (2015), Investments: Concepts and Applications 5th Ed., Cengage, South Melbourne.

The textbooks listed above are both available for 2 hour loan from the ANU Library.

Staff Feedback

We use feedback from students, professional bodies and staff to make regular improvements to the course. In response to this feedback, design improvements from the previous version of the course include:

  • Incorporation of prior examination questions in the tutorial program;
  • Additional emphasis on real world examples using Australian data; and
  • Changes to the assessment structure.

Student Feedback

ANU is committed to the demonstration of educational excellence and regularly seeks feedback from students. Students are encouraged to offer feedback directly to their Course Convener or through their College and Course representatives (if applicable). The feedback given in these surveys is anonymous and provides the Colleges, University Education Committee and Academic Board with opportunities to recognise excellent teaching, and opportunities for improvement. The Surveys and Evaluation website provides more information on student surveys at ANU and reports on the feedback provided on ANU courses.

Other Information

Consultation hours will be confirmed at the start of the semester.

?Any student identified, either during the current semester or in retrospect, as having used ghost writing services will be investigated under the University’s Academic Misconduct Rule.

Class Schedule

Week/Session Summary of Activities Assessment
1 Lecture topic: Introduction to Investments Required reading: Lecture Notes, Chapters 1 to 4 (Chapters 1 to 4 provide necessary background reading. A proportion of the material contained in these chapters was introduced in FINM1001 Foundations of Finance. However, as these concepts are crucial to FINM2003 Investments, students will be assumed to have read and understood them). Tutorial preparation: N/A
2 Lecture topic: Risk, Return, and the Historical Record Required reading: Lecture Notes, Chapter 5 Tutorial preparation: Tutorial 1 questions as per Wattle
3 Lecture topic: Capital Allocation and Optimal Risky Portfolios Required reading: Lecture Notes, Chapters 6 and 7 Tutorial preparation: Tutorial 2 questions as per Wattle
4 Lecture topic: Index Models Required reading: Lecture Notes, Chapter 8 Tutorial preparation: Tutorial 3 questions as per Wattle
5 Lecture topic: The Capital Asset Pricing Model Required reading: Lecture Notes, Chapter 9 Tutorial preparation: Tutorial 4 questions as per Wattle
6 Lecture topic: Multifactor Asset Pricing Models and Empirical Evidence on Security Returns Required reading: Lecture Notes, Chapters 10 and 13 Tutorial preparation: Tutorial 5 questions as per Wattle Online Quiz
7 Lecture topic: The Efficient Market Hypothesis and Behavioural Finance Required reading: Lecture Notes, Chapters 11 and 12 Tutorial preparation: Tutorial 6 questions as per Wattle Mid-semester examination
8 Lecture topic: Bond Prices and Yields and The Term Structure of Interest Rates Required reading: Lecture Notes, Chapters 14 and 15 Tutorial preparation: Tutorial 7 questions as per Wattle
9 Lecture topic: Managing Bond Portfolios Required reading: Lecture Notes, Chapter 16 Tutorial preparation: Tutorial 8 questions as per Wattle
10 Lecture topic: Portfolio Performance Evaluation Required reading: Lecture Notes, Chapter 24 Tutorial preparation: Tutorial 9 questions as per Wattle Assignment due
11 Lecture topic: Hedge Funds Required reading: Lecture Notes, Chapter 26 Tutorial preparation: Tutorial 10 questions as per Wattle
12 Lecture topic: Investment Policy and the Framework of the CFA Institute & Review Required reading: Lecture Notes, Chapter 28, CFA Code of Ethics and Standards of Professional Conduct Tutorial preparation: Tutorial 11 questions as per Wattle

Tutorial Registration

Tutorial signup for this course will be done via the Wattle website. Detailed information about signup times will be provided on Wattle or during your first lecture. When tutorials are available for enrolment, follow these steps:

1.   Log on to Wattle, and go to the course site

2.   Click on the link “Tutorial enrolment”

3.   On the right of the screen, click on the tab “Become Member of…..” for the tutorial class you wish to enter

4.   Confirm your choice

If you need to change your enrolment, you will be able to do so by clicking on the tab “Leave group….” and then re-enrol in another group. You will not be able to enrol in groups that have reached their maximum number. Please note that enrolment in ISIS must be finalised for you to have access to Wattle.

Assessment Summary

Assessment task Value Due Date Return of assessment Learning Outcomes
Mid-Semester Examination 20 % 23/04/2019 30/04/2019 1,2
Group Assignment 20 % 06/05/2019 20/05/2019 1,2,3,4
Final Examination 60 % 06/06/2019 04/07/2019 1,2
Online Quiz 0 % 01/04/2019 01/04/2019 1,2

* If the Due Date and Return of Assessment date are blank, see the Assessment Tab for specific Assessment Task details


ANU has educational policies, procedures and guidelines, which are designed to ensure that staff and students are aware of the University’s academic standards, and implement them. Students are expected to have read the Academic Misconduct Rule before the commencement of their course. Other key policies and guidelines include:

Assessment Requirements

The ANU is using Turnitin to enhance student citation and referencing techniques, and to assess assignment submissions as a component of the University's approach to managing Academic Integrity. For additional information regarding Turnitin please visit the ANU Online website. Students may choose not to submit assessment items through Turnitin. In this instance you will be required to submit, alongside the assessment item itself, hard copies of all references included in the assessment item.

Moderation of Assessment

Marks that are allocated during Semester are to be considered provisional until formalised by the College examiners meeting at the end of each Semester. If appropriate, some moderation of marks might be applied prior to final results being released.


This course involves a mid-semester and final examination, to be scheduled by central timetabling. The time and location of these exams will be released when confirmed via the ANU timetabling website http://timetable.anu.edu.au/exams/. Details regarding permitted materials and what to expect will be provided during the lecture in Week 6 (for the Mid- Semester Examination), and in Week 12 (for the Final Examination).

Assessment Task 1

Value: 20 %
Due Date: 23/04/2019
Return of Assessment: 30/04/2019
Learning Outcomes: 1,2

Mid-Semester Examination

Date: Week 7 (The mid-semester exam will be scheduled centrally, with the expectation being that it will be held during Week 7. This may be subject to change in the unforeseen event of timetabling restrictions. Should this be the case, students will be advised well in advance, by the lecturer).

Value or Weighting (%): 20% (or 0% if not attempted/redeemed).

Marks: 20

Duration: 90 mins

Instructions: This will be an optional and redeemable closed book examination covering all topics from week 1, up to and including the material lectured in week 5. There will be no special examinations for the mid-semester exam, therefore in the event of student absence, its weighting will be allocated to the final exam. There will be no formula sheet for this examination, so please ensure you study with this expectation in mind.

Purpose: To review the material covered up to, and including, week 5. The mid- semester examination provides a good source of feedback on your progress, and worked solutions will be provided subsequent to the exam to assist with revision.

Assessment Task 2

Value: 20 %
Due Date: 06/05/2019
Return of Assessment: 20/05/2019
Learning Outcomes: 1,2,3,4

Group Assignment

Due Date: 11am Monday 6 May 2019

Value or Weighting (%): 20%

Marks: 20

Length: 2000 words max.

Instructions: To be completed in groups of 3-4 students. Groups will be randomly assigned by the lecturer and an assignment handout containing further information to be made available by Week 1.

Purpose: Empirical assignment designed to provide experience applying the methods developed in class thus far, to real-world data.

Marking Criteria: As per specified on assignment handout.

Submission Details: To be submitted electronically via Wattle by 11am, Monday 6 May 2019.

Assessment Task 3

Value: 60 %
Due Date: 06/06/2019
Return of Assessment: 04/07/2019
Learning Outcomes: 1,2

Final Examination

Due Date: To be scheduled by the ANU examinations office to take place during the final exam period.

Value or Weighting (%): 60% (or 80% if the mid-semester exam is not attempted/redeemed)

Marks: 60

Duration: 3 hours

Instructions: This will be a closed book examination which may include all topics covered throughout the semester, with emphasis placed on the topics from weeks 6 to 12. There will be no formula sheet for this examination, so please ensure you study with this expectation in mind.

Purpose: Review the material covered throughout the course.

Assessment Task 4

Value: 0 %
Due Date: 01/04/2019
Return of Assessment: 01/04/2019
Learning Outcomes: 1,2

Online Quiz

Due Date: 1-5 April, 2019.

Value or Weighting (%): 0%

Duration: Students have 30 minutes to complete the quiz from when they first open the quiz.

Instructions: This will be a online quiz available on Wattle. Quiz answers will be available to students immediately after they finish the online quiz.

Purpose: Review the material covered from week 1 to 4.

Academic Integrity

Academic integrity is a core part of our culture as a community of scholars. At its heart, academic integrity is about behaving ethically. This means that all members of the community commit to honest and responsible scholarly practice and to upholding these values with respect and fairness. The Australian National University commits to embedding the values of academic integrity in our teaching and learning. We ensure that all members of our community understand how to engage in academic work in ways that are consistent with, and actively support academic integrity. The ANU expects staff and students to uphold high standards of academic integrity and act ethically and honestly, to ensure the quality and value of the qualification that you will graduate with. The University has policies and procedures in place to promote academic integrity and manage academic misconduct. Visit the following Academic honesty & plagiarism website for more information about academic integrity and what the ANU considers academic misconduct. The ANU offers a number of services to assist students with their assignments, examinations, and other learning activities. The Academic Skills and Learning Centre offers a number of workshops and seminars that you may find useful for your studies.

Online Submission

You will be required to electronically sign a declaration as part of the submission of your assignment. Please keep a copy of the assignment for your records. Unless an exemption has been approved by the Associate Dean (Education) as submission must be through Turnitin.

Hardcopy Submission

For some forms of assessment (hand written assignments, art works, laboratory notes, etc.) hard copy submission is appropriate when approved by the Associate Dean (Education). Hard copy submissions must utilise the Assignment Cover Sheet. Please keep a copy of tasks completed for your records.

Late Submission

No submission of assessment tasks without an extension after the due date will be permitted. If an assessment task is not submitted by the due date, a mark of 0 will be awarded.

Referencing Requirements

Accepted academic practice for referencing sources that you use in presentations can be found via the links on the Wattle site, under the file named “ANU and College Policies, Program Information, Student Support Services and Assessment”. Alternatively, you can seek help through the Students Learning Development website.

Returning Assignments

Assignment marks will be uploaded to the Wattle gradebook for the course. The lecturer will detail the procedure for collection of assignments containing any comments on Wattle, upon completion of marking.

Extensions and Penalties

Extensions and late submission of assessment pieces are covered by the Student Assessment (Coursework) Policy and Procedure. The Course Convener may grant extensions for assessment pieces that are not examinations or take-home examinations. If you need an extension, you must request an extension in writing on or before the due date. If you have documented and appropriate medical evidence that demonstrates you were not able to request an extension on or before the due date, you may be able to request it after the due date.

Privacy Notice

The ANU has made a number of third party, online, databases available for students to use. Use of each online database is conditional on student end users first agreeing to the database licensor’s terms of service and/or privacy policy. Students should read these carefully. In some cases student end users will be required to register an account with the database licensor and submit personal information, including their: first name; last name; ANU email address; and other information.
In cases where student end users are asked to submit ‘content’ to a database, such as an assignment or short answers, the database licensor may only use the student’s ‘content’ in accordance with the terms of service – including any (copyright) licence the student grants to the database licensor. Any personal information or content a student submits may be stored by the licensor, potentially offshore, and will be used to process the database service in accordance with the licensors terms of service and/or privacy policy.
If any student chooses not to agree to the database licensor’s terms of service or privacy policy, the student will not be able to access and use the database. In these circumstances students should contact their lecturer to enquire about alternative arrangements that are available.

Distribution of grades policy

Academic Quality Assurance Committee monitors the performance of students, including attrition, further study and employment rates and grade distribution, and College reports on quality assurance processes for assessment activities, including alignment with national and international disciplinary and interdisciplinary standards, as well as qualification type learning outcomes.

Since first semester 1994, ANU uses a grading scale for all courses. This grading scale is used by all academic areas of the University.

Support for students

The University offers students support through several different services. You may contact the services listed below directly or seek advice from your Course Convener, Student Administrators, or your College and Course representatives (if applicable).

Dr Kun Li

Research Interests

Industrial Organization, Macroeconomics and Finance

Dr Kun Li

Monday 00:00 00:00
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Dr Kun Li
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Research Interests

Dr Kun Li

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