Stock Market Simulation

Curriculum Guideline

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Course
FINC 4460
Discontinued
No
Course Code
FINC 4460
Descriptive
Stock Market Simulation
Department
Finance
Faculty
Commerce & Business Administration
Credits
3.00
Start Date
End Term
202030
PLAR
No
Semester Length
15 Weeks X 4 Hours per Week = 60 Hours
Max Class Size
35
Contact Hours
Laboratory: 3 Hours Seminar: 1 Hour Total: 4 Hours
Method(s) Of Instruction
Lab
Seminar
Learning Activities

Material will be presented with a seminar and distance monthly group reporting format.

Students will be divided into "simulation groups" and will act as "portfolio managers’ responsible for all aspects of tracking and assessing and reporting.

Course Description
The objective of this course is to construct equity portfolios for Shanghai A and B Boards and actively assess the impact of various dynamic portfolio strategies in a simulated environment. The simulation will be competitive and will integrate the application of all the portfolio theories previously covered in the Program. The competing teams will be required to examine macro-economic factors, term structure slope, and all the capital market theories into portfolio construction and management through monthly detailed portfolio performance reports.
Course Content
  1. Review of portfolio management and performance theories.
  2. Portfolio construction techniques.
  3. Introduction of the software package and Excel portfolio tracking templates.
  4. Review of Shanghai Board A and B shares and the index valuations.
  5. Introduction of the portfolio simulation rules and requirements.
  6. Weekly portfolio updates (buys, sells and changes in the portfolio mix).
  7. Weekly performance reports (Investment strategies vs. Actual portfolio performance).
  8. Monthly portfolio performance report (to be submitted to instructor for evaluation).
  9. Construction of simple statistical and econometric methods to implement portfolio models of Active Asset Allocation.
Learning Outcomes

At the end of the course, the successful student should be able to:

 

  1. define and explain the tasks and responsibilities of a portfolio manager
  2. describe and differentiate between the various portfolio management and performance tracking strategies
  3. demonstrate a broad understanding of the capital markets in China within which a portfolio manager must operate
  4. demonstrate a broad understanding of all the factors, economic or otherwise, which contribute to the behaviour of capital markets
  5. explain the determinants of pricing of all types of equity stocks and market fluctuations in the Shanghai Stock Exchange
  6. explain and compute the basic statistical measures of variability and demonstrate their general use in valuing risky stocks
  7. demonstrate a broad understanding of the concepts, principles, procedures and practices involved in constructing portfolios
  8. describe the key elements of investment objectives and benefits of the portfolio management and tracking process and be able to compute rates of return on the portfolio mixes
  9. be able to construct, monitor and weekly assess the portfolio values and portfolio management strategy changes based on investment objectives.
Means of Assessment
Monthly comprehensive portfolio reports
     including charts, some technical and statistical analysis            		   50%
Investment Objectives Report  
     Due withing the first 4 weeks of the semester		   10%
Midterm Progress Report
     Defined investment objectives vs Actual performance		   10%
Term End Final Report/Presentation
     consoldiation of all the semester's work		   30%
 Total  100%

The instructor will define the exact format and the criteria for assessment of all the reports required.

Textbook Materials

Textbooks and Materials to be Purchased by Students

As chosen by instructor from:

  • Bodie et al.  Investments, Latest Canadian Ed.  McGraw-Hill Ryerson.
  • Cunningham, R.T., Portfolio Tracker, Kolb Publishing, 1992
  • Reilly, F. & K. Brown.  Investment Analysis:  Portfolio Management, Latest Ed.  Thompson-South-Western.
  • Excel based templates will also be introduced by the instructor for performance tracking
  • A package of journal articles to be provided.
  • All students are expected to read a daily financial newspaper and be aware of important news events.
Prerequisites

4th year standing in Financial Markets and Investment Management Program