Investment Science

Course aim

The aim of this course is to expose students to principles and techniques of Investment Science.

Course content

Deterministic cash flow streams: present and future values, fixed income securities, term structure of interest rate. Single period random cash flows: mean-variance portfolio theory, general principle of pricing. Derivative securities: forward and futures, models of asset dynamics, basic option theory, Black-Scholes equation. General cash flow streams: optimal portfolio growth, general investment evaluation.

Textbook(s)

Luenberger, David G 1998, Investment Science, Oxford University Press

Prerequisite(s)

Common to all relevant programs
Subject Area & Catalogue Number	Course Name
MATH 1055	Calculus 2
MATH 2014	Linear Programming and Networks

Corequisite(s)

Nil

Teaching method

Component	Duration
INTERNAL, CITY WEST
Lecture	3 hours x 13 weeks
Tutorial	1 hour x 13 weeks
Directed Study (Meetings and activities as agreed with Course Coordinator)	N/A x 13 weeks

Note: These components may or may not be scheduled in every study period. Please refer to the timetable for further details.

Assessment

Assignment 1, Assignment 2, Final examination, Progress tests (best 6 out of 7)

Fees

EFTSL*: 0.125
Commonwealth Supported program (Band 1)
To determine the fee for this course as part of a Commonwealth Supported program, go to:
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Fee-paying program for domestic and international students
International students and students undertaking this course as part of a postgraduate fee paying program must refer to the relevant program home page to determine the cost for undertaking this course.

Non-award enrolment
Non-award tuition fees are set by the university. To determine the cost of this course, go to:
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Not all courses are available on all of the above bases, and students must check to ensure that they are permitted to enrol in a particular course.

* Equivalent Full Time Study Load. Please note: all EFTSL values are published and calculated at ten decimal places. Values are displayed to three decimal places for ease of interpretation.