Posted: May 8th, 2019

Financial Markets and Institutions (BANK 1005) Assessment

Financial Markets and Institutions (BANK 1005)
Assessment 2
Study Period 2, 2019
Due at 5 pm (S.A. Time), Monday 20 May, 2019
Instructions
• This assignment will require the use of the IRESS software for accessing and
collecting information. It is essential that all internal students participate in the two
sessions of trading room activities as scheduled in the course calendar. External
students can choose to use the online version of the IRESS software. An instruction
video will be uploaded on the course website for external students.
• Students should work in teams of up to three students (that is, between one to three
students per team). You are responsible for forming your own team and managing its
activities.

• Break the report into sections through careful use of headings highlighted in bold
and include a reference list at the end. This report needs to be written in a general
report format.
• Your report should be supported by graphs and tables where appropriate. Your
report should not exceed 1500 words. The appendix of your report does not count
towards this limit.
• One nominated team member should submit your assessment online, using the Learn
Online facility, as one Microsoft Word document including the submission
coversheet. Only ONE final assignment should be submitted per team. The
nominated team member should also submit the assessment feedback form
separately including the names, student identification numbers and study mode
of all team members.
• Record the assessment title and the name of each member of your team in capital
letters on the coversheet, with the surname (last name) first, followed by the first
name (given name or forename), the student identification number and the study
mode (i.e. internal or external).
• It is expected that all team members will contribute equally and therefore will
receive the same mark for the assignment regardless of individual input.
• There is a penalty of 10% of the total possible marks for late submission of each day.
The only exception to this is if your course coordinator approves an extension prior to
the due date, for legitimate reasons based on documented evidence.
• You must ensure that your submitted assignment is your own work. The electronic
version of your submitted assignment will be used for a plagiarism check. If found,
you will be penalised. The Academic Integrity section of the Course Outline
details the various University policies that will apply to academic integrity and
misconduct.

2
Background
Assume that you work as a senior equity analyst in a financial services firm. Your job is
to provide advice and wealth creation strategies to private and institutional investors and
corporate clients throughout Australia. As such, you investigate a number of publicly
listed companies in Australia. These companies are:
1. Domino’s Pizza Enterprise Limited (DMP.ASX)
2. Nine Entertainment Co. Holdings Limited (NEC.ASX)
3. Idp Education Limited (IEL.ASX)
4. Coco-Cola Amatil Limited (CCL.ASX)
5. Santos Limited (STO.ASX)
6. Westpac Banking Corporation (WBC. ASX)
7. Healthscope Limited (HSO.ASX)
8. IRESS Limited (IRE.ASX)
9. TPG Telecom Limited (TPM.ASX)
10. AGL Energy Limited (AGL.ASX)
Task
As part of your job, you prepare reports for the benefit of your clients.
Perform the following tasks and write a report to present your research findings.
• Identify and describe a recent company (from the list provided above)
announcement that is expected to influence the price of its stock. The company
announcement must be made after Monday the 1st of April 2019.
• Conduct your own investigation, regarding the market reaction in relation to the
announcement you have identified. Collect and use relevant information such as
company share prices, market index data, risk-free rates and market capitalisation as
supporting evidence if applicable.
• Is the observed market reaction as per your expectation? This discussion should be
related to, and based on, your understanding of the Efficient Market Hypothesis
(EMH).
• Based on your analysis and findings, provide your own comments and critical
thinking on the article: ‘The theory of stock market efficiency: Accomplishments
and limitations’ by Ray Ball (available in eReadings).
A report should consist of the following aspects:
• Introduction including some theoretical aspects as indicated in the above notes.
• Discussion including the announcement affecting one of the followed companies
and the effect of the announcement on the share price whilst utilising theoretical
knowledge.
• Conclusion including informative results and any recommendations to investors.
• Appendixes including the evidence of using IRESS data. For example, the use of
empirical evidence in graphs and tables in support of your discussion and findings,
and brief descriptions of the followed company and the identified announcement.

Assessment Feedback Form
You should read the Assessment feedback form below and note the listed requirements
to enhance the content and presentation of your work.
3
Assessment feedback
BANK 1005 Financial Markets and Institutions
Due Date: 20 May 2019 at 5.00 pm (Adelaide time) via Learnonline
Weighting (as % of total for the course): 20%
Names, ID and study mode: Total Marks:
Key components of this assignment Performance on this component Comments/Suggested improvements
Very
Good
Good Fair Poor Very
Poor
A: The Effect of the News Announcement (Essay) – 70%
Introduction sets the scene interestingly addressing key
concepts and a point of view. (10%)
Discussion
Examines the news and its importance as information.
Links the news to theory and the company’s business.
Shows good understanding of Ball’s article and the
importance of its content. (15%)

Discussion
Write a word essay – Evaluate s the data analysis as to the evidence it provides.
Links the evidence to the theory, integrating this
evidence into the discussion.
Makes application of the content of Ball’s article. (25%)

Conclusion
Leads to an informative and compelling
conclusion/recommendation. (15%)
Overall, the essay is well presented, structured, has
logical and integrated flow as a whole with a clear
focus. It is written in your own succinctly chosen words
with sound grammar.

Presentation
Presents the work informatively, neatly and clearly
following the essentials for good presentation. Numbers
all the pages sequentially, shows references, and includes
a contents page. (5%)

Subtotal marks for Part A

B: Appendixes (Evidence of using the IRESS software) – 30%
(1): Tables
Presents the data accurately in a table using proper
formatting and units for the numbers.
Shows the title, column headings and the source of data.
Shows neat and compact presentation on a single page
with good visual appeal to highlight what is important.
(10%)

(2): Charting
Presents each graph neatly and accurately to enhance
visual appeal using a single page for each with the
appropriate trading lab software.
Shows title (and figure #), source of data, uses suitable
scales/axes and charting tool effectively to highlight the
information (including dates). (10%)

(3): Description
This part should be well sorted out and with brief
descriptions of the company and the announcement, so
that they are easy to follow. (10%)

Subtotal marks for Part B

Summary comments/Suggestions for improvement: