Assessment Type: Individual coursework worth 100 % of the module
Assignment Question:
(a) Analyze the shape of the US yield curve and with reference to academic literature offer explanations for its shape.
(20 marks)
(b) Research the concept of the US market risk premium and critically discuss the relevance of this concept under existing market conditions.
(20 marks)
(c) You will be given a company on the New York Stock Exchange. The company is INMARSAT PLC (ISAT.L) Access data such as share prices and annual reports on the company from the public domain. Using the Dividend Valuation Model evaluate the price of the share and use it to make a recommendation on whether the share as at 1 June 2015, should be held, bought or sold.
(35 marks)
(d) Critically appraise all assumptions you have made in making your recommendation, including a critique of the model used.
(20 marks)
(e) Good clear presentation, referencing, spelling and grammar.
(5 marks)
Your individual assignment:
• Gives you an opportunity to apply some of learning from the module to your chosen company.
Assessment requirements:
• The submission of your work should be organized and clearly structured.
• The overall word limit is 2,000 words: this is about 8 A4 pages (size 12, times new roman, 1.5 line spacing). The appendices will include a reference list and the weekly data on prices of the share the sector and the entire market. The word count must appear on the top right hand corner of page 1 of your assignment. The pages must be numbered in the bottom right hand corner. You name can appear in the assignment at the footer.
• Indicate the sources of information and literature review by including all the necessary citations and references adopting the Harvard Referencing system.
• Please note that this is an individual assignment and the policy of the University on Plagiarism and Academic Misconduct applies.
• Students who have been found to have committed acts of Plagiarism are automatically considered to have failed the entire module.
• Plagiarism involves taking someone else’s words, thoughts, ideas or essays from online essay banks and trying to pass them off as your own. It is a form of cheating which is taken very seriously.
• Marks will be deducted for poor presentation and inadequate referencing.
• All workings must be shown.
Assignment Structure:
• Introduction.
• The context of your chosen listed company.
• Attempts at parts (a), (b) and (c).
o with reference to academic literature, critical discussion of your findings in (a), (b) and (c) and the usefulness of the concepts of market efficiency, portfolio theory and the CAPM.
o References and bibliography; the Harvard style of referencing should be followed (see below)
o Appendix – data on th this may include extracts of the relevant financial statements/information of
the chosen listed company.
Harvard Referencing
The structure of a citation under the Harvard referencing system is the author’s surname, year of publication, and page number or range, in parentheses, as illustrated in the Smith example near the top of this article.
• The page number or page range is omitted if the entire work is cited. The author’s surname is omitted if it appears in the text. Thus we may say: “Jones (2001) revolutionized the field of trauma surgery.”
• Two or three authors are cited using “and” or “&”: (Deane, Smith, and Jones, 1991) or (Deane, Smith & Jones, 1991). More than three authors are cited using et al. (Deane et al. 1992).
• An unknown date is cited as no date (Deane n.d.). A reference to a reprint is cited with the original publication date in square brackets (Marx [1867] 1967, p. 90).
• If an author published two books in 2005, the year of the first (in the alphabetic order of the references) is cited and referenced as 2005a, the second as 2005b.
• A citation is placed wherever appropriate in or after the sentence. If it is at the end of a sentence, it is placed before the period, but a citation for an entire block quote immediately follows the period at the end of the block since the citation is not an actual part of the quotation itself.
• Complete citations are provided in alphabetical order in a section following the text, usually designated as “Works cited” or “References”. The difference between a “works cited” or “references” list and a bibliography is that a bibliography may include works not directly cited in the text.
• All citations are in the same font as the main text.
Examples
Examples of book references are:
• Smith, J. (2005a). Dutch Citing Practices. The Hague: Holland Research Foundation.
• Smith, J. (2005b). Harvard Referencing. London: Jolly Good Publishing.
In giving the city of publication, an internationally well-known city (such as London, The Hague, or New York) is referenced as the city alone. If the city is not internationally well known, the country (or state and country if in the U.S.) are given.
Examples of journal references are:
• Smith, John Maynard. “The origin of altruism,” Nature 393, 1998, pp. 639-40.
• Bowcott, Owen. “Street Protest”, The Guardian, October 18, 2005, accessed February 7, 2006.
Module learning outcome: –
The set coursework will cover the following learning outcomes of the module, while the remaining will be covered in the class-lectures
Learning Outcomes:
• Discuss the concepts underpinning the role of interest rates and markets, including their term structure and the wider implications in a global context
• Critically evaluate the most appropriate sources for financing, how to raise it, and what are the conditioning factors within localised and global market contexts which need to be considered when taking decisions on these matters
• Evaluate, appraise and critically discuss the efficient market hypothesis and portfolio theory and the manner in which these may be mapped against case study examples and models
• Analyse, discuss and form reflective judgements on how markets transfer funds and risk between people and the global, individualised, ethical and contemporary issues which contribute to this area of debate
• Demonstrate a critical awareness of the importance of research in evaluating the evolution of investment analysis
Marking scheme: June 14, CMET FMIA assignment
Part Marks awarded/
allocated Marker Comments
(a) concept of the yield curve properly researched in the light of various theories and practical implications
—/20
(b) concept of the yield curve properly researched in the light of various theories and practical implications
—-/20
(c) Evaluation of share performance using the Dividend Valuation model to arrive at justifiable share price.
—-/35
(d) Critical appraisal of all assumptions made in making the recommendation, including a critique of the model used.
—-/20
(f) good clear presentation, referencing, spelling and grammar.
—-/5
Total
—-/100
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