Assessment 1

For this assessment, you will need to perform the following tasks. These tasks will need to be completed and submitted in a professional, word processed, format. Each task must be minimum in length.

Task 1

For this task you are to report detailing how you could apply economic principles to work in the financial services industry. You report must include details on the following:

How you could apply economic principles and theories related to financial services functions and tasks

How you could evaluate economic aspects that apply to decision making

How you could review your own work

How you could maintain a personal understanding of economic policies

Task 2

For this task you must research and answer the following points :

Outline key features of common economic theories that relate to the financial services industry

Outline key features of microeconomic principles and how they relate to financial services industry products, services and organisational practices

Explain capital adequacy requirements for financial services organisations based on financial product mix

Explain asset pricing models and their use in identifying organisational value and capital structures

Explain and apply economic theories and valuation of assets

Identify and apply financial modelling techniques and tools

Outline industry or organisation financial markets, products and services

Describe key features of relevant legislation, statutory requirements and industry codes of practice

Identify and describe techniques and tools for evaluation and interpretation of research data

Describe the economic and political climate relating to the financial services industry

Assessment 2

Scenario 1:

You work for Australian Super, one of Australia's largest super funds. This Superannuation Fund is committed to passing on all the good things that size has to offer. The vision of this organisation is: "every Australian should have a solid financial future, so our purpose is to help achieve better retirement outcomes for all".

Australian Super is committed to providing quality service by employing managers and specialist staff in-house, and complements their expertise with external service providers.

Your manager has asked you to do a comprehensive financial model for the purpose of determining where $100 million dollars will be invested. The Strategic Plan for Australian Super over the next 3 years is achieve 10% return on investment.

Your task is to choose 2 ASX listed companies from the list below, using Microsoft excel do a financial model to determine the value and ongoing viability of both companies for a period of 3 years, make your recommendations as to your preferred organisation and explain your reasons.

1.Develop an asset pricing model to determine the required or expected rate of return on the asset

2.Determine the value in relation to the capital structure of both companies.

3.Determine if the theoretically appropriate rate of return will be 10% over the 5 years period from the purchase of shares in the organisation.

4.The model should take into account the asset's sensitivity to non-diversifiable risk, as well as the expected return of the market and the expected return of a theoretical risk-free asset.

5.Detailed market analysis and other information to support projected numbers

6.Consider how the economic and political climate might relate to the financial industry when undertaking financial modelling.

ASX Listed companies include:

Woolworths Ltd

Toll Holdings

Qantas Airways

Lend Lease Group

Goodman Group

assessment 3

1. What steps would you take to identify economic principles and theories related to financial services functions and tasks?

1. How would you evaluate economic aspects that apply to decision making?

1. What would you do to review your own work?

1. How will you maintain a personal understanding of economic policies?

1. Briefly describe positive economics.

1. What is microeconomics?

1. What is NPV and how do you calculate it?

1. What is IRR? Briefly describe.

1. What are cost and benefits?

1. What are economic models? Briefly describe.

1. Briefly explain modern capitalism.

1. Briefly describe the value theory.