Sheet1CategoryPointsScoreDescriptionDocumentation & Formatting1010Project will be done in Excel and will contain formulas to receive maximum credit.Organization and Cohesiveness1515Calculations for all parts should be organized and correctly labeled.Content1010Journal EntriesA quality case study will have all required work completed and will be correct.Content33Closing EntriesContent66Statement of Revenues, Expenditures, and Changes in Fund BalanceContent66Balance SheetTotal5050A quality project will meet or exceed all of the above requirements.
Sheet2
Sheet3
Group Assignment (Due Date: Friday, 17 October 2014 at 6:00 pm)
This item of assessment is Compulsory.
You are a Graduate Trainee Investment Analyst at a renowned fund management company. After six (6) months of joining the company, you are asked by your superior to produce a comprehensive report on a publicly listed company on the New Zealand Stock Exchange Limited (NZX) (Meridian Energy) or Australian Stock Exchange Limited (ASX). This assignment is important in determining your confirmation as a permanent employee of the company.
The intended audiences for your report are potential institutional investors who are existing clients of the company. Your report should be at least 2,000 words. As a guide, your report should comprise at least the following:-
1. Executive Summary
2. Introduction - Purpose and Objectives
3. General Company Description – Shareholders and Management Team
4. Products and/or Services
5. Industry/Sectoral Analysis
6. SWOT (Strength, Weaknesses, Opportunities and Threats) Analysis
7. Porter’s Five Forces Analysis
8. Financial Ratio Analysis
9. Competitors Analysis
10. Scenario Analysis (Good / Average / Poor)
11. Conclusions and Recommendations
12. Appendices
13. References
Hints:
1. Limit the executive summary to one page, in point form of between 8 and 10 points only. It summarizes the whole report for a busy reader who only wants to know the salient points of your report.
2. Be specific on the purpose of your report. Provide some objectives that you think are very relevant and important. A good report will also include scope and limitations.
3. On the company’s description, a copy and paste from the latest annual report will not deserve an A. Be resourceful by including major shareholder changes, director changes, or corporate moves that are pertinent to the company.
4. Point (3) above applies to products and/or services of the company too.
5. Provide a review and development of only the principal business activity of the company.
6. No need for a lengthy elaboration in SWOT Analysis.
7. Same goes for Porter’s Five Forces Analysis (please refer to Chapter 17). This is a finance paper, not management. The SWOT and Porter analyses are only there so that students have an idea of what should be there in a complete ‘Company Analysis’.
8. Perform a financial ratio analysis (please refer to Chapter 19) for the two (2) subsequent latest years. For any annual report of.
1. Sheet1CategoryPointsScoreDescriptionDocumentation &
Formatting1010Project will be done in Excel and will contain
formulas to receive maximum credit.Organization and
Cohesiveness1515Calculations for all parts should be organized
and correctly labeled.Content1010Journal EntriesA quality case
study will have all required work completed and will be
correct.Content33Closing EntriesContent66Statement of
Revenues, Expenditures, and Changes in Fund
BalanceContent66Balance SheetTotal5050A quality project will
meet or exceed all of the above requirements.
Sheet2
Sheet3
Group Assignment (Due Date: Friday, 17 October 2014 at 6:00
pm)
This item of assessment is Compulsory.
You are a Graduate Trainee Investment Analyst at a renowned
fund management company. After six (6) months of joining the
company, you are asked by your superior to produce a
comprehensive report on a publicly listed company on the New
Zealand Stock Exchange Limited (NZX) (Meridian Energy) or
Australian Stock Exchange Limited (ASX). This assignment is
important in determining your confirmation as a permanent
employee of the company.
The intended audiences for your report are potential
institutional investors who are existing clients of the company.
Your report should be at least 2,000 words. As a guide, your
report should comprise at least the following:-
1. Executive Summary
2. Introduction - Purpose and Objectives
3. General Company Description – Shareholders and
Management Team
4. Products and/or Services
2. 5. Industry/Sectoral Analysis
6. SWOT (Strength, Weaknesses, Opportunities and Threats)
Analysis
7. Porter’s Five Forces Analysis
8. Financial Ratio Analysis
9. Competitors Analysis
10. Scenario Analysis (Good / Average / Poor)
11. Conclusions and Recommendations
12. Appendices
13. References
Hints:
1. Limit the executive summary to one page, in point form of
between 8 and 10 points only. It summarizes the whole report
for a busy reader who only wants to know the salient points of
your report.
2. Be specific on the purpose of your report. Provide some
objectives that you think are very relevant and important. A
good report will also include scope and limitations.
3. On the company’s description, a copy and paste from the
latest annual report will not deserve an A. Be resourceful by
including major shareholder changes, director changes, or
corporate moves that are pertinent to the company.
4. Point (3) above applies to products and/or services of the
company too.
5. Provide a review and development of only the principal
business activity of the company.
6. No need for a lengthy elaboration in SWOT Analysis.
7. Same goes for Porter’s Five Forces Analysis (please refer to
Chapter 17). This is a finance paper, not management. The
SWOT and Porter analyses are only there so that students have
an idea of what should be there in a complete ‘Company
Analysis’.
8. Perform a financial ratio analysis (please refer to Chapter 19)
for the two (2) subsequent latest years. For any annual report of
a public-listed company, there will be financial reports for the
current year and the previous year. Thus, you only need to get
3. the latest annual report of the company. Provide comments on
the trend of the ratios.
9. Select a competitor from the same industry with your
company and compare their financial ratios for the latest
financial year only. If you just provide the figures, your report
will not deserve an A. Provide your comments by comparing the
ratios of your company and the competitor.
10. Perform a scenario analysis on three (3) conditions, good,
average, and poor. Depending on your company, look at what
would be a factor that will have the most significant impact on
the profitability of the company. For example, for New Zealand
Oil & Gas Limited, it will be the price of crude oil. Forecast the
net profit of the company for three (3) different levels of crude
oil. Then, calculate the prospective earnings per share and
prospective price earnings ratio.
11. Summarize your analyses in the conclusions and provide
your stock recommendations. It can be Strong Buy, Buy,
Accumulate, Buy on Weakness, Hold, Sell on Strength, Sell, or
Strong Sell. Look at broker’s reports for guidance.
12. Include important articles or write-up that you quote in the
appendices. If you have many of them, prepare a table of
appendices.
PAPER OUTLINE
Paper Title: Portfolios and Markets
Paper Code: FINA312-14B (HAM)
School: Waikato Management School
Department: Finance
4. Location: Main Campus, Hillcrest Road, Hamilton
Convenor: Sazali Abidin (Dr)
ph. ext: 4513
room : MSB.3.38H
Email:[email protected]
Table of Contents
Staffing
Timetable Details
Purpose Statement
Learning Outcomes
Activities
Topics
Assessment
Resources
Schedule
Research
Review and Evaluation
Linkages
Other Information
STAFF
Tutor:
Noor Muhammad (Mr)
Email:[email protected]
Administrator:
Denise Martin (Miss)
ph. ext: 4448
room : MSB.3.38B
Office Hours: 12.30-5
Email:[email protected]
Student Representative(s)
5. Jinge Guo [email protected]
Zoe Hughes [email protected]
TIMETABLE DETAILS:
Lectures
Lecture Name Lecture Time Room
LEC 01 Wed 9am – 11am L.G.03
Laboratories
The laboratory groups are now closed (since 31/07/2014 at 12 m
idnight)
Group No. Room Time Max. No.
1 MSB.0.22 Mon at 9 am for 1hr. 26 25
2 MSB.0.21 Mon at 2 pm for 1hr. 25 23
3 Full MSB.0.21 Tue at 1 pm for 1hr. 26 26
4 Full MSB.0.21 Tue at 2 pm for 1hr. 27 27
5 Full MSB.0.21 Tue at 3 pm for 1hr. 26 26
6 Full MS6.G.30 THU at 10 am for 1hr. 26 26
Projects
The project groups are now closed (since 31/07/2014 at 12 midn
ight)
6. Group No. Room Time Max. No.
1 Full - - 3 3 Abano Healthcare Group
2 Full - - 3 3 Acurity Health Group
3 Full - - 3 3 Auckland International Airport
4 Full - - 3 3 Air New Zealand Limited
5 Full - - 3 3 Allied Farmers Limited
6 - - 3 0 Aorere Resources Limited
7 Full - - 3 3 Argosy Property Limited
8 - - 3 1 The a2 Milk Company
9 Full - - 3 3 Augusta Capital Limited
10 Full - - 3 3 AWF Group Limited
11 Full - - 3 3 Airwork Holdings Limited
mailto:[email protected]
mailto:[email protected]
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9. 27 Full - - 3 3 Fletcher Building
28 Full - - 3 3 Finzsoft
Solution
s
29 Full - - 3 3 Fisher & Paykel Healthcare
30 Full - - 3 3 Freightways Limited
31 Full - - 3 3 Fonterra Shareholder
32 Full - - 3 3 Goodman Property Trust
33 Full - - 3 3 Genesis Energy Limited
34 Full - - 3 3 Green Cross Health
35 Full - - 3 3 Hellaby Holdings
36 Full - - 3 3 Horizon Energy Distribution
10. 37 Full - - 3 3 Hallenstein Glasson
38 Full - - 3 3 Heartland New Zealand
39 Full - - 3 3 Infratil Limited
40 Full - - 3 3 Kingfish Limited
41 Full - - 3 3 Kiwi Income Property
42 Full - - 3 3 Kathmandu Holdings
43 Full - - 3 3 Kirkcaldie & Stains
44 Full - - 3 3 Lyttelton Port Company
45 Full - - 3 3 Energy Mad Limited
46 Full - - 3 3 Millennium & Copthorne
47 Full - - 3 3 Meridian Energy
52 Full - - 3 3 Marlin Global Limited
53 Full - - 3 3 Moa Group Limited
11. 54 - - 3 1 Mowbray Collectables
55 Full - - 3 3 Mighty River Power
56 Full - - 3 3 Methven Limited
57 Full - - 3 3 NPT Limited Ordinary
Note: Provisional enrolments in groups are denoted by *.
Group Information
PURPOSE STATEMENT
This paper introduces the fundamental concepts related to portf
olio decisions of individual and institutional investors. Based o
n the concept of risk-return trade-off, it discusses
the techniques and implications of efficient portfolio diversifica
tion and the allocation of assets among different securities. A sp
ecial feature of this paper is that it provides an
opportunity to students to work on an investment project using r
eal world data.
LEARNING OUTCOMES
By the end of this paper, students are expected to be able to:
12. 1 :
Understand how financial assets are being categorized and the t
ypes of financial instruments.
2 :
Learn how financial securities are being traded and some market
terminology.
3 : Compute returns and the measures of risk.
4 :
Understand the concept of diversification, efficient portfolios, a
nd asset valuation models.
5 : Determine undervalued and overvalued securities.
6 :
Differentiate active versus passive portfolio management techni
ques, and understand the basic concept of Eastern Banking and
Finance.
7 : Understand the mechanisms of derivative instruments.
8 : Evaluate performance of investment portfolios.
13. ACTIVITIES
1 : 40 Hours .... Attend classes
2 : 70 Hours .... Complete Group Assignment
3 : 50 Hours .... Prepare for and attend Quizzes
4 :
30 Hours .... Complete the Fund Management Simulation Proje
ct
5 : 10 Hours .... Study and sit for the Examination
TOPICS
This paper will cover the following topics:
•
The Investment Environment, Asset Classes and Financial Instru
ments
• How Securities are Traded
•
Mutual Funds and Other Investment Companies, Risk and Retur
14. n
• Optimal Risky Portfolios, Index Model
•
Capital Asset Pricing Model, Arbitrage Pricing Theory and Mult
ifactor Models
•
Efficient Market Hypothesis, Behavioral Finance and Technical
Analysis
• Bond Prices and Yields, Term Structure of Interest Rates
javascript:toolwindow('/school/utilities/TutorialReport/classlist.
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asp?crs=FINA312-
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asp?crs=FINA312-
14B%20(HAM)&gp=13&tuttype=G&person=student')
javascript:toolwindow('/school/utilities/TutorialReport/classlist.
asp?crs=FINA312-
20. • Futures Markets, Options Markets
• International Diversification, Hedge Funds
• Portfolio Performance Evaluation
ASSESSMENT
Internal Assessment/Final Examination 1:1
Internally Assessed Components
Component Details Submission Details
Component Due Date Weighting
Comp-
ulsory
Where How Status
Fund Management Simulation Project - Report 1 8/08/2014
at 6:00 pm
2.40% Online Web Submit
Information
21. Only
Fund Management Simulation Project - Report 2 15/08/2014
at 6:00 pm
2.40% Online Web Submit
Information
Only
Fund Management Simulation Project - Report 3 12/09/2014
at 6:00 pm
2.40% Online Web Submit
Information
Only
Fund Management Simulation Project - Report 4 26/09/2014
at 6:00 pm
2.40% Online Web Submit
Information
22. Only
Fund Management Simulation Project - Report 5 10/10/2014
at 6:00 pm
2.40% Online Web Submit
Information
Only
Quizzes, Best 4 of 5 60.00% Other Other
Information
Only
Quiz 1 1/08/2014
at 6:00 pm
- Online
Web Submit
FINA Tutorial Quiz
Information
Only
23. Quiz 2 19/08/2014
at 6:00 pm
- Online
Web Submit
FINA Tutorial Quiz
Information
Only
Quiz 3 9/09/2014
at 6:00 pm
- Online
Web Submit
FINA Tutorial Quiz
Information
Only
Quiz 4 23/09/2014
at 6:00 pm
24. - Online
Web Submit
FINA Tutorial Quiz
Information
Only
Quiz 5 7/10/2014
at 6:00 pm
- Online
Web Submit
FINA Tutorial Quiz
Information
Only
Tutorial Completions, Best 4 of 5 8.00% Other Other
Information
Only
25. Tutorial Completion 1 22/07/2014
at 6:00 pm
- Online Web Submit
Information
Only
Tutorial Completion 2 5/08/2014
at 6:00 pm
- Online Web Submit
Information
Only
Tutorial Completion 3 19/08/2014
at 6:00 pm
- Online Web Submit
Information
Only
Tutorial Completion 4 16/09/2014
26. at 6:00 pm
- Online Web Submit
Information
Only
Tutorial Completion 5 30/09/2014
at 6:00 pm
- Online Web Submit
Information
Only
Group Assignment 17/10/2014
at 6:00 pm
20.00% MSC Web Submit
Information
Only
Total 100%
27. Notes
The above Internally assessed components make up 50.00% of t
he total assessment.
The Final Examination makes up the remaining 50.00%
You are required to complete the Assessments marked as "Comp
ulsory".
YOU MUST do the Compulsory Assessment otherwise you will
not pass the Paper.
Examination
Examination Starts Ends Weighting
Comp-
ulsory
Where How
Exam Not Available Ends: 50.00% at Exam Printed
Assignment Details
Fund Management Simulation Project - Report 1 (Due Date: Fri
day, 8 August 2014 at 6:00 pm)
Details will be posted on MyWeb in due course. This assessmen
28. t relates to Learning Outcome 1 - Understand how financial asse
ts are being categorized and the types
of financial instruments.
Fund Management Simulation Project - Report 2 (Due Date: Fri
day, 15 August 2014 at 6:00 pm)
Details will be posted in MYWeb in due course. This assessmen
t relates to Learning Outcome 2 - Learn how financial securities
are being traded and some market
terminology, and Learning Outcome 3 - Compute returns and th
e measures of risk.
Fund Management Simulation Project - Report 3 (Due Date: Fri
day, 12 September 2014 at 6:00 pm)
Details will be posted in MyWeb in due course. This assessment
relates to Learning Outcome 4 - Understand the concept of dive
rsification, efficient portfolios, and
asset valuation models, and Learning Outcome 5 - Determine un
dervalued and overvalued securities.
Fund Management Simulation Project - Report 4 (Due Date: Fri
day, 26 September 2014 at 6:00 pm)
29. Details will be posted in MyWeb in due course. This assessment
relates to Learning Outcome 6 - Differentiate active versus pas
sive portfolio management techniques,
and understand the basic concept of Eastern Banking and Financ
e.
Fund Management Simulation Project - Report 5 (Due Date: Fri
day, 10 October 2014 at 6:00 pm)
Details will be posted in MyWeb in due course. This assessment
relates to Learning Outcome 7 - Understand the mechanisms of
derivative instruments, and Learning
Outcome 8 - Evaluate performance of investment portfolios.
Quizzes, Best 4 of 5
The best 4 scores out of 5 quizzes will be taken into account. If
you miss a quiz due to sickness, or a family bereavement, you a
utomatically drop that quiz. If you miss
more than 1 quiz for valid reasons then you can apply for specia
l consideration. You are expected to attempt all 5 quizzes.
Quiz 1(Due Date: Friday, 1 August 2014 6:00 pm)
Will cover Chapters 1, 2, and 3. This assessment relates to Lear
30. ning Outcome 1 - Understand how financial assets are being cat
egorized and the types of
financial instruments.
Quiz 2(Due Date: Tuesday, 19 August 2014 6:00 pm)
Will cover Chapters 4, 5, 7, and 8. This assessment relates to Le
arning Outcome 2 - Learn how financial securities are being tra
ded and some market
terminology, and Learning Outcome 3 - Compute returns and th
e measures of risk.
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ent.asp?crs_off_id=FINA312%2D14B+%28HAM%29&compone
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A00+pm')
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34. earning Outcome 6 - Differentiate active versus passive portfoli
o management techniques,
and understand the basic concept of Eastern Banking and Financ
e.
Quiz 5(Due Date: Tuesday, 7 October 2014 6:00 pm)
Will cover Chapters 18, 19, 22, and 20. This assessment relates
to Learning Outcome 7 - Understand the mechanisms of derivati
ve instruments, and
Learning Outcome 8 - Evaluate performance of investment portf
olios.
Tutorial Completions, Best 4 of 5
The best 4 scores out of 5 tutorial completions will be taken int
o account. Tutorial completions are scored 100% if at least 70%
of the tutorial questions are
completed, regardless of correct or incorrect answers.
Tutorial Completion 1(Due Date: Tuesday, 22 July 2014 6:00 p
m)
35. Will cover Chapters 1, 2, and 3. This assessment relates to Lear
ning Outcome 1 - Understand how financial assets are being cat
egorized and the types of
financial instruments.
Tutorial Completion 2(Due Date: Tuesday, 5 August 2014 6:00
pm)
Will cover Chapters 4, 5, 7, and 8. This assessment relates to Le
arning Outcome 2 - Learn how financial securities are being tra
ded and some market
terminology, and Learning Outcome 3 - Compute returns and th
e measures of risk.
Tutorial Completion 3(Due Date: Tuesday, 19 August 2014 6:00
pm)
Will cover Chapters 9, 10, 11, and 12. This assessment relates t
o Learning Outcome 4 - Understand the concept of diversificati
on, efficient portfolios, and
asset valuation models, and Learning Outcome 5 - Determine un
dervalued and overvalued securities.
Tutorial Completion 4(Due Date: Tuesday, 16 September 2014 6
:00 pm)
36. Will cover Chapters 14, 15, and 17. This assessment relates to L
earning Outcome 6 - Differentiate active versus passive portfoli
o management techniques,
and understand the basic concept of Eastern Banking and Financ
e.
Tutorial Completion 5(Due Date: Tuesday, 30 September 2014 6
:00 pm)
Will cover Chapters 18, 19, 22, and 20. This assessment relates
to Learning Outcome 7 - Understand the mechanisms of derivati
ve instruments, and
Learning Outcome 8 - Evaluate performance of investment portf
olios.
Group Assignment (Due Date: Friday, 17 October 2014 at 6:00
pm)
This item of assessment is Compulsory.
You are a Graduate Trainee Investment Analyst at a renowned f
und management company. After six (6) months of joining the c
ompany, you are asked by your superior
to produce a comprehensive report on a publicly listed company
37. on the New Zealand Stock Exchange Limited (NZX) or Australi
an Stock Exchange Limited (ASX). This
assignment is important in determining your confirmation as a p
ermanent employee of the company.
The intended audiences for your report are potential institutiona
l investors who are existing clients of the company. Your report
should be at least 2,000 words. As a
guide, your report should comprise at least the following:-
1. Executive Summary
2. Introduction - Purpose and Objectives
3. General Company Description –
Shareholders and Management Team
4. Products and/or Services
5. Industry/Sectoral Analysis
6.
SWOT (Strength, Weaknesses, Opportunities and Threats) Anal
ysis
7. Porter’s Five Forces Analysis
8. Financial Ratio Analysis
9. Competitors Analysis
10. Scenario Analysis (Good / Average / Poor)
11. Conclusions and Recommendations
12. Appendices
38. 13. References
Hints:
1.
Limit the executive summary to one page, in point form of betw
een 8 and 10 points only. It summarizes the whole report for a b
usy reader who only wants to
know the salient points of your report.
2.
Be specific on the purpose of your report. Provide some objecti
ves that you think are very relevant and important. A good repor
t will also include scope and
limitations.
3.
On the company’s description, a copy and paste from the latest
annual report will not deserve an A. Be resourceful by including
major shareholder changes,
director changes, or corporate moves that are pertinent to the co
mpany.
4.
Point (3) above applies to products and/or services of the compa
39. ny too.
5.
Provide a review and development of only the principal busines
s activity of the company.
6. No need for a lengthy elaboration in SWOT Analysis.
7.
Same goes for Porter’s Five Forces Analysis (please refer to Ch
apter 17). This is a finance paper, not management. The SWOT
and Porter analyses are only there
so that students have an idea of what should be there in a compl
ete ‘Company Analysis’.
8.
Perform a financial ratio analysis (please refer to Chapter 19) fo
r the two (2) subsequent latest years. For any annual report of a
public-listed company, there will
be financial reports for the current year and the previous year. T
hus, you only need to get the latest annual report of the compan
y. Provide comments on the
trend of the ratios.
9.
Select a competitor from the same industry with your company a
nd compare their financial ratios for the latest financial year onl
40. y. If you just provide the figures,
your report will not deserve an A. Provide your comments by co
mparing the ratios of your company and the competitor.
10.
Perform a scenario analysis on three (3) conditions, good, avera
ge, and poor. Depending on your company, look at what would
be a factor that will have the
most significant impact on the profitability of the company. For
example, for New Zealand Oil & Gas Limited, it will be the pric
e of crude oil. Forecast the net
profit of the company for three (3) different levels of crude oil.
Then, calculate the prospective earnings per share and prospecti
ve price earnings ratio.
11.
Summarize your analyses in the conclusions and provide your st
ock recommendations. It can be Strong Buy, Buy, Accumulate,
Buy on Weakness, Hold, Sell on
Strength, Sell, or Strong Sell. Look at broker’s reports for guida
nce.
12.
Include important articles or write-up that you quote in the appe
ndices. If you have many of them, prepare a table of appendices
41. .
Examination ( Date: Unavailable )
No extra Information
Assessment Policy
All tutorial completions, quizzes, and the semester project repor
t must be the work of each student. Group work must be the wor
k of each group. Instances of
academic dishonesty will be dealt with according to University
Policy.
Late submission of any assessments will not be accepted and wil
l not be marked unless there are grounds for special considerati
on which normally means health or
bereavement.
The application for such consideration can be found under Files.
Further information is available at http//www.waikato.ac.nz/sas
d/examinations/exams3.shtml
42. Group Policy: A group may comprise a minimum of 2 members
and a maximum of 3 members. Students who wish to complete t
he group assignment by themselves can
do so, if they email the instructor before the end of the second
week (before 5.00pm on July 25). Otherwise students are rando
mly assigned into groups of 3 students.
If conflicts arise within a group, students can write a memo to t
he instructor indicating why they cannot continue in the group a
nd, if the instructor concurs, the
student may be allowed to leave the group and complete the assi
gnments individually, carrying the group marks for completed a
ssignments. He or she will not be
allowed to join another group. A group that chooses to continue
with 2 members cannot add another person to the group. Invaria
bly, people leaving groups are fed-up
with the lack of effort by others in the group: if you think it is u
nfair to have 2 members in a group, then contribute to the group
, as you will not receive any
dispensation whatsoever for having only 2 members. It is recom
mended that groups get everyone to contribute to each assignme
nt to prevent conflict among members
as results are awarded later in the semester.
RESOURCES
43. Required
Bodie, Kane, and Marcus, Investments, 10th ed., McGraw-Hill,
2014
Recommended
Ismail, Abdul Ghafar, Money, Islamic Banks and The Real Econ
omy, Cengage, 2010
Timothy R. Mayes and Todd M. Shanks, Financial Analysis wit
h Microsoft Excel, 5th ed., Cengage, 2010. This book is helpful
if you need help with Microsoft Excel. It is
very basic and also illustrates finance concepts as you learn Exc
el. Other instructors have recommended similiar books and you
are welcome to use those books
instead.
Other Resources
1. Extensive use of online databases.
2. Articles published in the NBR are examinable.
SCHEDULE
44. Title Topics
Week1
beginning 14/07/2014
Staff :Sazali Abidin
The Investment Environment, Asset Classes and Financial Instru
ments
Investments by Bodie, Kane and Marcus, 10th. Edition - Chapte
rs 1 and 2
Week2
beginning 21/07/2014
Staff :Sazali Abidin
Mutual Funds and Other Investment Companies, How Securities
are Traded
Investments by Bodie, Kane and Marcus, 10th. Edition - Chapte
rs 3 and 4
45. 12 - Tutorial Completion 1 22/07/2014 6:00:00 p.m.
Week3
beginning 28/07/2014
Staff :Sazali Abidin
Risk and Return, Optimal Risky Portfolios, Index Model
Investments by Bodie, Kane and Marcus, 10th. Edition - Chapte
rs 5, 7, and 8
6 - Quiz 1 1/08/2014 6:00:00 p.m.
Week4
beginning 4/08/2014
Staff :Sazali Abidin
Capital Asset Pricing Model, Arbitrage Pricing Theory and Mult
ifactor Models
Investments by Bodie, Kane and Marcus, 10th. Edition - Chapte
rs 9 and 10
46. 1 - Fund Management Simulation Project - Report 1 8/08/2014 6
:00:00 p.m.
13 - Tutorial Completion 2 5/08/2014 6:00:00 p.m.
Week5
beginning 11/08/2014
Staff :Sazali Abidin
Efficient Market Hypothesis, Behavioral Finance and Technical
Analysis
Investments by Bodie, Kane and Marcus, 10th. Edition - Chapte
rs 11 and 12
2 - Fund Management Simulation Project - Report 2 15/08/2014
6:00:00 p.m.
Week6
beginning 18/08/2014
Staff :Sazali Abidin
Bond Prices and Yields, Term Structure of Interest Rates
47. Investments by Bodie, Kane and Marcus, 10th Edition - Chapter
s 14 and 15
7 - Quiz 2 19/08/2014 6:00:00 p.m.
14 - Tutorial Completion 3 19/08/2014 6:00:00 p.m.
Week7
beginning 25/08/2014
Teaching Recess
Week8
beginning 1/09/2014
Teaching Recess
Week9
Staff :Sazali Abidin
Macroeconomic and Industry Analysis
beginning 8/09/2014
48. Investments by Bodie, Kane and Marcus, 10th Edition - Chapter
17
3 - Fund Management Simulation Project - Report 3 12/09/2014
6:00:00 p.m.
8 - Quiz 3 9/09/2014 6:00:00 p.m.
Week10
beginning 15/09/2014
Staff :Sazali Abidin
Introduction to Eastern Banking and Finance
Money, Islamic Banks and the Real Economy, Abdul Ghafar Ism
ail - Chapters 1 and 3
15 - Tutorial Completion 4 16/09/2014 6:00:00 p.m.
Week11
beginning 22/09/2014
Staff :Sazali Abidin
Equity Valuation Models, Financial Statement Analysis
49. Investments by Bodie, Kane and Marcus, 10th Edition - Chapter
s 18 and 19
4 - Fund Management Simulation Project - Report 4 26/09/2014
6:00:00 p.m.
9 - Quiz 4 23/09/2014 6:00:00 p.m.
Week12
beginning 29/09/2014
Staff :Sazali Abidin
Futures Markets, Options Markets
Investments by Bodie, Kane and Marcus, 10th Edition - Chapter
s 20 and 22
16 - Tutorial Completion 5 30/09/2014 6:00:00 p.m.
Week13
beginning 6/10/2014
Staff :Sazali Abidin
50. International Diversification, Hedge Funds
Investments by Bodie, Kane and Marcus, 10th Edition - Chapter
s 25 and 26
5 - Fund Management Simulation Project - Report 5 10/10/2014
6:00:00 p.m.
10 - Quiz 5 7/10/2014 6:00:00 p.m.
11 - Quizzes, Best 4 of 5 7/10/2014 6:00:00 p.m.
17 - Tutorial Completions, Best 4 of 5 10/10/2014 6:00:00 p.m.
Week14
beginning 13/10/2014
Staff :Sazali Abidin
Portfolio Performance Evaluation
Investments by Bodie, Kane and Marcus, 10th Edition - Chapter
24
18 - Group Assignment 17/10/2014 6:00:00 p.m.
RESEARCH
51. The results of the Fund Management Simulation Project for the
entire class will be reviewed half-way through the semester and
at the end of the experiment. The instructor will
review the results and provide feedbacks on how the various str
ategies performed.
REVIEW AND EVALUATION
The Department strives to make all papers relevant, timely, stim
ulating, interesting and as up-to-date as possible. Towards the e
nd of each paper students will be asked to
evaluate both the content and teaching of the paper. The results
of the evaluations are not seen until after the final grades have b
een submitted to Examinations. Comments
about the content and teaching are also welcome as the paper pr
ogresses.
LINKAGES TO OTHER PAPERS
Pre-requisites: FINA201
Restrictions: FINA517
EXTRA INFORMATION
Your attention is drawn to the following regulations and policie
52. s which are published in the University Calendar. Also, please r
efer to “Statement and Policies” (which can be viewed
on www.mngt.waikato.ac.nz/myweb) outlining Waikato Manage
ment School and Departmental policies. Regulations Governing
Examinations and Assessment Discipline
Regulations Computer System Regulations Policy on the Use of
Maori for Assessment Policy on the Ethical Conduct of Coursew
ork Assignments Regulations on Plagiarism.
DEPARTMENTAL POLICY
http://www.mngt.waikato.ac.nz/myweb
Discussion Questions and Case study
1) A governmental budget is legally binding in that
expenditures (and revenues) are "appropriated". This means that
the total expenditures for the year are approved by the
governing body, such as the City Council or Board of Trustees.
In our city code, there are laws about how and when municipal
53. budgets must be approved. These are called "Municipal Fiscal
Procedures".
It is illegal to spend over the appropriated budgetary authority.
We track our expenditures during the year, and if we need more
budgetary authority, we have an budget hearing. Many
municipalities (like cities and school districts) do one budget
adjustment hearing at the end of the fiscal year to account for
any overruns. To me, this goes against the spirit of the law as
appropriations should be made before the funds are expended.
Too often, I have seen the budgetary authority viewed as a
"license to spend", meaning there is more focus on spending all
of the budget instead of sound financial management. There is a
"use it or lose it" mentality.
Class, what are your thoughts on this?
2) Recall from week one that the measurement focus of the
General Fund is different from the measurement focus of the
governmental-wide financial statements. Why is there a
different focus?
The basis of accounting is also different -- why is this?
3) Fund journal entries and financial statements compared to
government wide journal entries and financial statements.
54. Class, let's take a look at the homework template I provided --
notice how outflow of funds, like payments to vendors, are
called "expenditures" in the general fund and "expenses" in the
governmental activities. Why is there this difference? What
other differences do you notice?
The template for 4-10, which is much like the problem for your
week 2 case study, is a good place to start this discussion. Also
please let me know if you have any questions on the homework!
4) Class, the general fund, which is the most major fund of a
government, uses the current financial resources focus. What
are your thoughts about this "current" focus, and fiscal
responsibility focusing on the budget? Is this too narrow of a
focus, or too short-term of a focus? Why or why not? As a
financial manager in a governmental or NFP entity, how would
you also focus on the longer term viability of your programs?
55. ACCT567 Case Study I (Week 2)
The General Fund of Middleville has presented you with the
following trial balance as of June 30, 2011.
Debits Credits
Cash
$ 40,000
Taxes Receivable- Delinquent
142,000
56. Estimated Uncollectible Taxes- Delinquent
9,100
Interest and Penalties Receivable
32,000
Vouchers Payable
24,000
Budgetary Fund Balance-Reserve for Encumbrances
10,200
Fund Balance
_________ 170,700
$ 214,000 $214,000
The information that is being presented to you pertains to the
transactions for the city of Middleville for the fiscal year ended
June 30, 2012.
1. The following budget was adopted by the city council:
Estimated Revenues:
Property Taxes $
650,000
Fines and Penalties
44,000
Licenses and Permits
150,000
57. Federal Grant
85,000
929,000
Appropriations and Other Financing Uses
Public Safety
402,000
General Government
263,000
Public Works
102,000
Parks and Recreation
92,000
Transfers Out
34,000
893,000
2. Encumbrances outstanding at the end of the year were re-
opened.
3. Property taxes of $ 660,000 were levied. It is estimated that
2.5% of the property taxes levied are expected to be
uncollectible/
4. Purchase orders issued for the 2012 fiscal year were as
follows:
58. Public Safety, $ 395,000; General Government, $ 259,000;
Public Works, $ 100,000; Parks and Recreation, $ 98,000.
5. Cash collected for the Federal Grant from the Federal
Government, $ 94,000.
6. Cash collected and transferred in as follows:
Fines and Penalties 43,000
Licenses and Permits 164,000
7. Cash collected on property taxes were as follows: Current
taxes, $559,000, Delinquent Taxes, $ 41,000 and $ 22,000 of
interest and penalties were collected.
8. Purchase orders issued in 2012 in the following amounts were
filled in at the following amounts:
Estimated Actual
Public Safety $ 395,000 $ 393,600
General Government $ 259,000 $ 258,200
Public Works $ 100,000 $ 99,400
Parks and Recreation $ 98,000 $ 97,500
--------------- ---------------
$ 852,000 $ 848,700
9. Vouchers paid amounted to $ 840,000 and the transfer out to
59. the Debt Service Fund, $34,000.
10. Please reclassify the Taxes Receivable –Current and
Estimated Uncollectible Taxes- Change from Current to
Delinquent.
Instructions:
a. Prepare journal entries for the fiscal year ending 2012.
b. Prepare closing entries.
c. Prepare a General Fund Statement of Revenues, Expenditures,
and Changes in Fund Balance for the year ended June 30, 2012.
d. Prepare a General Fund Balance Sheet as of June 30, 2012.
Grading Rubric for Case Study 1:
Category
Points
%
Description
Documentation & Formatting
10
20%
Project will be done in Excel and will contain formulas to
receive maximum credit.
60. Organization and Cohesiveness
15
30%
Calculations for all parts should be organized and correctly
labeled.
Content
25
50%
A quality case study will have all required work completed and
will be correct.
Total
50
100%
A quality project will meet or exceed all of the above
requirements.
