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 2014	Linear Programming and Networks
MATH 1055	Calculus 2

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:
How to determine your Commonwealth Supported course fee. (Opens new window)

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:
How to determine the relevant non award tuition fee. (Opens new window)

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.