W04-BAFI3258-A1ø00 words

RMIT Classification: Trusted
School of Economics, Finance and Marketing
‚AFI3258 Managerial Finance
Assessment 1: Essay
Assessment Type: Individual Essay
Word limit: 800 (+/- 10%)
in body text
Weighting: 20%
Overview
You are required to construct an essay of 800 words expressing your personal views as to the effectiveness of
the market in setting prices.
The essay is aimed at providing you with the opportunity to create an intellectually constructed essay that
is well-written. Marks will therefore be awarded for ôyle!s well as for structure and content.
Course Learning outcomes
This assessment is aligned with:
ƒLO1: Appraise the nature and key components of financial systems both domestically and globally.
ƒLO2: Evaluate the concepts of time value of money to various valuation models including debts and
equities.
ƒLO3: Interpret the concept of diversification and examine the impact on the risk and return relationship.
ƒLO4: Analyse the characteristics and functions of arbitrage and derivatives and how they are applied to
risk management strategies.
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RMIT Classification: Trusted
Assessment details
The discussion topic for the first assessment is Sir Isaac Newtonàquote:
`can calculate the motion of heavenly bodies, but not the madness of people.”his quote was his response to the collapse of South Sea Bubble in 1720, in which he lost °,000 (equivalent to
approximately milion in 2022). His remarks suggest that investors be irrational during the bubble period when they
are more likely to follow each other (%rdingn But over the time, a few months to possibly many years, the psychology
factors are subtracted out and stock prices come to reflect the value of the company in relation to economic
fundamentals.
You are required to compose an essay of 800 words expressing your personal views as to the stock market bubble.
Specifically, your views should be developed based on the review of Week 1 and 2 learning materials including related
readings, discussions, and activities.
In week 1 and 2, we discuss a short history of stock markets, including the unfolding of bubble-crisis (¯om-bust`cycle
in the recent time. In your essay, our expectation is that you discuss the investors%xperience and behaviour prior to,
during and post a bubble. You may select a bubble period in the past three decades to demonstrate your viewpoints.
The essay is aimed at providing you with the opportunity to create an intellectually constructed essay that is well-written.
Marks will therefore be awarded for ôyle!s well as for structure and content.
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RMIT Classification: Trusted
Referencing guidelines
You must acknowledge all the sources of information you have used in your assessments.
Refer to the RMIT Easy Cite referencing tool to see examples and tips on how to reference in the
appropriate style. You can also refer to the library referencing page for more tools such as EndNote,
referencing tutorials and referencing guides for printing.
Use the RMIT Harvard referencing method for this assessment.
Submission format
Upload as one single file via the Assignments submission page within Canvas.
Academic integrity and plagiarism
Academic integrity is about honest presentation of your academic work. It means acknowledging the work of
others while developing your own insights, knowledge, and ideas.
You should take extreme care that you have:
¡cknowledged words, data, diagrams, models, frameworks and/or ideas of others you have quoted (i.e.
directly copied), summarised, paraphrased, discussed or mentioned in your assessment through the
appropriate referencing methods
°rovided a reference list of the publication details so your reader can locate the source if necessary. This
includes material taken from internet sites.
If you do not acknowledge the sources of your material, you may be accused of plagiarism because
you have passed off the work and ideas of another person, without appropriate referencing, as if they
were your own.
RMIT University treats plagiarism as a very serious offence constituting misconduct.
Plagiarism covers a variety of inappropriate behaviours, including:
¦ailure to properly document a source
£opyright material from the internet or databases
£ollusion between students
¦or further information on our policies and procedures, please refer to the University website.
Assessment Declaration
When you submit work electronically, you agree to the Assessment Declaration.
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