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Registration for the Fall 2019 semester begins June 25.  Watch your email for more details.

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Stock Market Simulation

Course Code: FINC 4460
Faculty: Commerce & Business Administration
Department: Finance
Credits: 3.0
Semester: 15 Weeks X 4 Hours per Week = 60 Hours
Learning Format: Lab, Seminar
Typically Offered: TBD. Contact Department Chair for more info.
course overview

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.

Methods of Instruction

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.

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.

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.

course prerequisites

4th year standing in Financial Markets and Investment Management Program

curriculum guidelines

Course Guidelines for previous years are viewable by selecting the version desired. If you took this course and do not see a listing for the starting semester/year of the course, consider the previous version as the applicable version.

course schedule and availability
course transferability

Below shows how this course and its credits transfer within the BC transfer system. 

A course is considered university-transferable (UT) if it transfers to at least one of the five research universities in British Columbia: University of British Columbia; University of British Columbia-Okanagan; Simon Fraser University; University of Victoria; and the University of Northern British Columbia.

For more information on transfer visit the BC Transfer Guide and BCCAT websites.

assessments

If your course prerequisites indicate that you need an assessment, please see our Assessment page for more information.