Faculty of Business, Economics & Accounting

Department of Accounting & Finance

HELP Bachelor of Business (Hons) Year 2

INTERNAL SUBJECT DETAILS

Semester 3, 2021

Subject: FIN 204

Investments Analysis & Decision
Making

Subject Lecturer/ Tutor: Mr. Valliappan Kasi

Telephone: 03-2716 2000
Fax: 03-2093 5311
Email: valliappank@help.edu.my

Consultation: Please call or e-mail for appointment

PRE-REQUISITE(S)

QBM101 BUSINESS STATISTICS &

FIN202 FINANCIAL MANAGEMENT

SYNOPSIS

The subject examines investing in marketable securities. It focuses on the investment

environment and the investment process. The environment includes the types of
marketable securities that exist and where and how they are bought and sold. The
investment process focuses on how an investor should proceed in making decisions about
what marketable securities to invest in, how to allocate the assets and the timing of the
investments.

OBJECTIVES

Upon successful completion of this subject, students should:

 be able to understand investing directly, investing indirectly, the markets in which they
are traded, and the mechanics of securities trading.

 be able to understand and analyze returns and risk, along with the portfolio theory and
capital market theory.

 be equipped with the skills of security analysis in context of the industry, the market
and the economy.

 be able to understand the portfolio management process and the performance

evaluation.

 be able to solve financial problems within the context of a dynamic market place.

PRESCRIBED TEXTBOOK

Jones C. P., Gerald R. J.(2019), Investments: Analysis and Management, 14th edn, John
Wiley & Sons.

RECOMMENDED REFERENCES

Gitman.L.J., & Zutter C.J., (2018), Principle of Managerial Finance: Brief Edition, 15th
edn, Pearson Education Limited.

Edwin J. Elton, Martin J. Gruber, Stephen J. Brown, and William N. Goetzmann, (2017),
Modern Portfolio Theory and Investment Analysis, 9th edn. Wiley.

Kiyosaki R. T., (2020), Rich Dad Poor Dad, Bespoke Books

2
Jones, C.P. & Gerald, R.J. (2014), Investments: Principles and Concepts, 12 th Edition,
John Wiley & Sons.

WEB REFERENCES (optional)

www.hnx.vn
http://www.sseinitiative.org
en.vietstock.com.vn
www.nyse.com
www.londonstcokexchange.com/en-gb/
www.sse.com.sg
www.hkex.com.hk
www.idx.co.id/
www.fundsupermart.com.my
klse.i3investor.com
www.treasury.gov.my/

JOURNALS

Quantitative Finance

The Journal of Finance

Journal of Financial Economics

Quarterly Journal of Finance (World Scientific)

Journal of Finance and Economics

Journal of Economic Literature

International Journal of Finance and Economics

Journal of Accounting and Economics

3
 Subject Outline / Teaching Plan

Department : Accounting & Finance Subject Code : FIN 204

Lecturer : Mr. Valliappan Kasi Subject Title : Investments Analysis &
Decision Making
Topics LECTURE TOPIC TEXTBOOK
1 Introduction to investment Chap 1,2
Financial Assets Investment alternatives
2 Indirect Investing Chap 3,4
Securities Markets

3 Measuring Return and Risk Chap 6

4 Portfolio Theory Chap 7,8
Portfolio Selection
5 Assets Pricing Principle Chap 9,12
Efficient Markets
6 Bonds: analysis & strategies Chap 18
7 Common Stocks Valuation Chap 10
Economy/Market Analysis Chap 13
8 MID SEMESTER
9 Sectors/Industries Analysis Chap 14 and 15
10 Companies Analysis
11 Puts & Calls (Options) Chap 19
12 Forward and Futures Chap 20
13 Professional Ethics in Investment and Portfolio Chap 21
Management
14 Revisions
15 & 16 FINAL EXAMINATION

Textbook: Jones C. P., Gerald R. J.(2019), Investments: Analysis and Management, 14th
edn, John Wiley & Sons.

4
ASSESSMENT

There are 3 assessment items for this subject.

Assessment Items Value Due Date

1. Assignment 1 (Group) 20% 22 October 2021

2. Assignment 2 (Group) 20% 5 November 2021

3. Final Examination (Online) 60% Examination period:

29 November to 11 December 2021

REQUIREMENTS

To gain a pass in this subject, students must:

 Achieve a passing mark in the Final Examination: to score a minimum of 30 marks

out of 60 marks.

 Attempt ALL areas of assessment; and achieve a total result of 50% or better overall.

EXTENSIONS AND PENALTIES FOR LATE SUBMISSION OF ASSIGNMENT(S)

If you are having difficulty in completing work in time due to illness or *extenuating
circumstances, you may apply for an extension through your lecturer with supporting
documentations eg. medical certificate, police report etc.  Applications for extensions on or
after the due date of the assessment will not be considered. A deduction of 10% per day from
the marks awarded after the due date applies, if the piece of work is submitted late without
approved extension.
 *Extenuating circumstances should primarily mean, medical conditions (both physiological and
psychological), family issues (death or illness), and personal misfortune (accident, mugging,
theft).  Student should provide document proof for all of the above and should also obtain prior
approval from the examiner towards late submission.

5
6
 ITEM 1: Assignment 1(100 MARKS) 20% OF TOTAL ASSESSMENT

Due date: 22 October 2021

Value: 20%

Word limit: 2000 words

Assessment Criteria

Make sure you follow the guidelines under Assignment preparation and Assessment
criteria, stated in this Subject Outline.

Rationale

This assignment covers work studied in Weeks 1-6. The aim is to test your understanding
of the theories and concepts covered so far.

Notes: You are required to attach a copy of the Turn-It-In report when submitting the
assignment.
Group Assignment

The assignment requires a group of not more than Three (3) students to attempt ALL the
questions which requires knowledge of the various issues discussed during lectures and
tutorials. It will also allow the students to be resourceful and apply that which they have
studied in this course. Therefore, it is important that students support their answers with
illustrations and examples where possible.

Each team must also include a report signed by the members, indicating the contribution
of each member towards the assignment.

TURNITIN:
 Class ID: 30593507
 Enrollment Password: FIN204S3

Assignment 1 (100 marks)

Read the following and answer the questions that follows:

Risk Analysis in Capital Investment

by 
 David B. Hertz(September 1979) Harvard Business Review
 https://hbr.org/1979/09/risk-analysis-in-capital-investment

7
How can business executives make the best investment decisions? Is there a method of
risk analysis to help managers make wise acquisitions, launch new products, modernize
the plant, or avoid overcapacity? “Risk Analysis in Capital Investment” takes a look at
questions such as these and says “yes”—by measuring the multitude of risks involved in
each situation. Mathematical formulas that predict a single rate of return or “best estimate”
are not enough. The author’s approach emphasizes the nature and processing of the data
used and specific combinations of variables like cash flow, return on investment, and risk
to estimate the odds for each potential outcome. Managers can examine the added
information provided in this way to rate more accurately the chances of substantial gain in
their ventures. The article, originally presented in 1964, continues to interest HBR readers.
In a retrospective commentary, the author discusses the now routine use of risk analysis in
business and government, emphasizing that the method can—and should—be used in any
decision-requiring situations in our uncertain world.

Of all the decisions that business executives must make, none is more challenging—and
none has received more attention—than choosing among alternative capital investment
opportunities. What makes this kind of decision so demanding, of course, is not the
problem of projecting return on investment under any given set of assumptions. The
difficulty is in the assumptions and in their impact. Each assumption involves its own
degree—often a high degree—of uncertainty; and, taken together, these combined
uncertainties can multiply into a total uncertainty of critical proportions. This is where the
element of risk enters, and it is in the evaluation of risk that the executive has been able to
get little help from currently available tools and techniques.

There is a way to help the executive sharpen key capital investment decisions by providing
him or her with a realistic measurement of the risks involved. Armed with this gauge,
which evaluates the risk at each possible level of return, he or she is then in a position to
measure more knowledgeably alternative courses of action against corporate objectives.

Questions:

a) Critique the above article and explain the important steps in the Capital
Budgeting process and the impact of risk in this process. (30
marks)

b) Discuss the risk challenges that an investor will face when deciding to
undertake a new venture in the current pandemic environment.
(30 marks)

c) Give an example of an investment project that you may undertake and discuss
how you would evaluate and incorporate the risk challenges that you may face
in appraising that project. (40
marks)

8
Assignment 2 (100 Marks) 20% of Total
assessment
Group Assignment
The assignment requires a group of not more than Three (3) students to attempt ALL the
questions which requires knowledge of the various issues discussed during lectures and
tutorials. It will also allow the students to be resourceful and apply that which they have
studied in this course. Therefore, it is important that students support their answers with
illustrations and examples where possible.

Each team must also include a report signed by the members, indicating the contribution
of each member towards the assignment.

Assessment Task

Due date: 5 November 2021

Topics covered: Week 1 to week 9
Word limit: 2,000 words maximum, excluding tables and appendices.

TURNITIN:
 Class ID: 30593549
 Enrollment Password: FIN204S3A2

‘Net present value and the cost of capital’ Computerworld.com July 2005

This current affairs article (which appeared in Computerworld.com July 2005) discusses
how understanding net present value (NPV) can increase an information technology
manager's chances of getting approval from corporate finance for IT expenditures.
Exhibit:
‘NPV represents the relationship between a project's expected cash flow and the cost of
capital. "In simplest terms, cost of capital is what you have to pay or give up for the
money you need for operating the business -- for buying new computers and other assets,"
explains Susan Koski-Grafer, a vice president at the Financial Executives Institute in
Morristown, N.J.
Knowing how to calculate NPV and cost of capital can get you a leg up over other internal
departments vying for the same funding dollars, says Alan J. Schneider, treasurer at
Chicago-based Wm. Wrigley Co.
NPV and cost of capital can help assess potential external investments, like stock
purchases or corporate acquisitions. But organisations are also using these equations to
evaluate investments in internal projects. Those projects can range from building a new
manufacturing plant to replacing an aging mainframe with a web-based system.
The cost of capital is generally measured as weighted average cost of capital (WACC).
WACC is the cost of debt, such as interest on a loan, and the cost of equity investment, or
rate of return. For internal investments, though, cost of debt typically doesn't come into
play.
One example of rate of return is the interest on a bank savings account. If your bank's
annual interest rate is 4%, your rate of return on the money you've invested is also 4%.

9
In many organisations today, a project must meet a "hurdle," or minimum requirement for
rate of return, before it can be considered for internal funding. The hurdle is used to help
calculate NPV. If the project meets the organisation's hurdle, NPV will be a positive
number. Conversely, if the project hasn't met the hurdle, NPV will be a negative number.
The higher the rate of return, the greater the chances the project will obtain the stamp of
approval. Let's say that an organisation's hurdle is 12%, for example. If a proposal
submitted by IT yields a 16% rate of return, while a competing department's proposal
brings a 14% rate of return, the IT department will get the edge thanks to its higher NPV.
There are other factors to consider as well. IT projects deliver intangible benefits that can't
be quantified using mathematical equations like NPV, such as better information access,
workflow and customer satisfaction.
Haim Mendelson, James Irvin Miller Professor of Information Systems at Stanford
University in Stanford, Calif., recommends talking about intangible benefits as well as
quantifiable NPV results in proposals to the finance department. "Some of the most
convincing arguments are that the project will bring strategic benefits or a business
restructuring," he says.
Organisations vary, too, in terms of who calculates NPV and cost of capital. At Bentley
College in Waltham, Mass., for instance, the finance department does that job. "But I
certainly get a lot of input from my IT people," says Joanne Yestramski, the college's vice
president of business and finance. Bentley has used these calculations to make computer
lease-or-buy decisions, as well as to predict return on investment from network upgrades
to a new, $20 million building called the Smith Technology Center that's slated to open in
the fall of 2000.
Even at organisations in which the finance department does all the math, it's important for
IT managers to comprehend NPV and cost of capital. "There's going to be a discussion
anyway, and you will have to justify the project. IT managers are in a much better position
if they know a project has already passed the hurdle based on its quantifiable benefits,"
Mendelson says.
"Partnering between IT and finance is critical," according to Ron Brezinski, principal at
Wilmette, Ill.-based Transformation Associates. "Finance can help IT to either look good
or look bad. By speaking the same language as finance, IT managers show that they're
playing on the same team, instead of sitting on the sidelines as outsiders."’

Questions:

1. What is the basic concept and relations of both NPV and cost of capital?

2. Evaluate the use of NPV technique in assessing new projects.

3. Give a practical example of the NPV approach and its challenges.

10
 ASSIGNMENT ASSESSMENT CRITERIA
FIN204

Task Marks
1. Market Analysis Detail analysis Detail analysis Basic analysis Analysis
supported with but supported supported with poorly done.
relevant details with limited minimal details
and excellent details and/or and poor
comment. comments. comments.
(18-20) (13-17) (9-12) (0-8) 20%

2. Industry Detail analysis Detail analysis Basic analysis Analysis

Analysis supported with but supported supported with poorly done.
relevant details with limited minimal details
and excellent details and/or and poor
comment. comments. comments.
(18-20) (13-17) (9-12) (0-8) 20%

3. Companies All Most Most Most

Analysis computations computations computations computations
done correctly. done correctly. done correctly. done
Supported with Supported Supported incorrectly.
relevant details with relevant with minimal .
and excellent details and details and
comment. good comments.
comment.
(36-40) (25-35) (17-24) (0-16) 40%

4. Company Excellent Good Basic Poor

Recommendation explanation. explanation. explanation. explanation.
Supported with Supported Supported
relevant with limited with minimal
details. details. details.

(9-10) (7-8) (5-6) (0-4) 10%

5. Group Appraisal Excellent Good Basic Poor

(9-10) (7-8) (5-6) (0-4) 10%

TOTAL

11
Group Member Appraisal Form

The purpose of this evaluation is to appraise your group member’s commitment in

completing the assignment and to their regard for other members of the group. It should be
based on the contribution given by each member and his or her involvement in this
assignment. Group member should be appraised based on the following criteria:

Mark
s
9-10  Attended all group meetings. If unable to attend, contacted the group in
advance and came to an alternative arrangement that the majority of group
members were happy with.
 Contributed to group discussion.
 Offer to help or volunteered for tasks at all time.
 Completed assigned tasks on time with no error.
7-8  Attended most of the group meetings. If unable to attend, contacted the group
in advance and reasons given were accepted by majority of group members.
 Contributed to group discussion.
 Offer to help or volunteered for tasks most of the time
 Completed assigned tasks on time with little or no error
5-6  Missed some of the group meetings without contacting the group in advance.
 Little contribution to group discussion.
 Completed assigned tasks on time but with some errors.
3-4  Attended only a few group meetings
 Little contribution to group discussion.
 Unable to complete assigned tasks.
1-2  Attended only a few group meetings
 Little contribution to group discussion.
 Never volunteered for any tasks.
0  Did not attend group meetings.
 No contribution to the assignment.

Name of student:

Instructions:
Write the name of your group members in the space provided below. Appraise each of the
members in your group in the scale of 0 to 10 based on the criteria above:

Name of students Mark (0 – 10)

1.
2.
3.
4.

Note:
Failure to submit a Group member appraisal form will result in a ZERO appraisal being
recorded against your name.

12
13
 Assignment No.: __

Assignment Cover Sheet

Student Information (For group assignment, please state names of
Grade/Marks
all members)
Name ID

Office
Module/Subject Information
Acknowledgement
Module/Subject Code
Module/Subject Name
Lecturer/Tutor/Facilitato
r
Due Date
Assignment Title/Topic
Intake (where applicable)
Word Count Date/Time
Declaration

. I/We have read and understood the Programme Handbook that explains on plagiarism, and I/we testify
that, unless otherwise acknowledged, the work submitted herein is entirely my/our own.
. I/We declare that no part of this assignment has been written for me/us by any other person(s) except
where such collaboration has been authorized by the lecturer concerned.
. I/We authorize the University to test any work submitted by me/us, using text comparison software, for
instances of plagiarism. I/We understand this will involve the University or its contractors copying my/our
work and storing it on a database to be used in future to test work submitted by others.

Note:1) The attachment of this statement on any electronically submitted assignments will be deemed to
have the same authority as a signed statement.
2) The Group Leader signs the declaration on behalf of all members.

Signature: Date:

14
 mail:
Feedback/Comments*
Main Strengths

Main Weaknesses

Suggestions for improvement

Student acknowledge feedback/comments

Grader’s signature Student’s signature:

Date: Date:
Note:
1)A soft and hard copy of the assignment shall be submitted.
2)The signed copy of the assignment cover sheet shall be retained by the marker.
3)If the Turnitin report is required, students have to submit it with the assignment. However, departments may allow
students up to THREE (3) working days after submission of the assignment to submit the Turnitin report. The
assignment shall only be marked upon the submission of the Turnitin report.

*Use additional sheets if required.

15
ITEM Final examination (open book) 70%
1. This examination consists of TWO (2) sections:

SECTION A consists of TWENTY (20) multiple choice questions (20 marks). Answer ALL questions in
the Multiple Choice Answer sheet provided with this examination questions (last page) and submit with
you answer for section B

SECTION B consists of FOUR (4) questions. (80 marks). Answer ALL questions.

2. Write your answer on a word document and submit via LMS.

3. This is an online examination.

…………………………………….

SPECIMEN: FINAL EXAMINATION QUESTION

SECTION A – MULTIPLE CHOICE QUESTIONS (20 MARKS)

Answer ALL questions. Each question carries 1 mark.

1. Which of the following statements about the difference between the SML and the CML
is TRUE?
a. The intercept of the CML is the origin while the intercept of the SML is RF.
b. The SML can be used for single security while CML only applies to portfolios.
c. The CML could be downward sloping while that is impossible for the SML.
d. The CML and the SML are essentially the same except in terms of risk factor.

2. Underlying all investments is the tradeoff between:

a. expected return and actual return
b. low risk and high risk
c. actual return and high risk
d. expected return and risk

3. Portfolio weights are found by:

a. dividing standard deviation by expected value.
b. calculating the percentage each asset is to the total portfolio value.
c. calculating the return of each asset to total portfolio return.
d. dividing expected value by the standard deviation.

4. Which of the following statements about Bursa Malaysia is true?

a. Over 10,000 companies are listed on Bursa Malaysia.
b. It is the oldest and most prominent secondary market in Asia.
c. Shares are traded in the multiple of 100 shares per lot.
d. The continuous trading hours is 9:00am to 5:00pm Monday to Friday.

5. What are the charges that are required to be paid by seller of shares in Bursa Malaysia?
a. Brokerage commission only

16
b. Clearing fees only
c. Stamp duty only
d. All of the above

6. The dividend model that is most appropriate for a young company that pays small
dividends now but is expected to increase dividends in a few years is the:
a. zero-growth model.
b. constant growth model.
c. multiple growth model.
d. expansion growth model.

7. What is the result of the widespread usage of the Internet with regards to efficient
markets?
a. It makes information cheaper and more accessible thus making markets more
efficient.
b. It is subject to new regulation thus marking markets less efficient.
c. It increases the volatility of security prices thus making markets less efficient.
d. It increases competition among brokers thus making markets more efficient.

8. Which of the following statements regarding the arithmetic mean and the geometric
mean is true?
a. The arithmetic mean is always a better measure of average performance.
b. The geometric mean is never a better measure of average performance.
c. The arithmetic mean is a better measure of performance over single periods.
d. The geometric mean is the best estimate of the expected return for the next period.

9. The standard deviation measures:

a. total risk of a security.
b. unique risk of a security.
c. systematic risk of a security.
d. the equity risk premium.

10. Which one of the following statements regarding RVAR (Sharpe’s reward-to-
variability measure) and RVOL (Treynor’s reward-to-volatility measure) is true?
a. RVOL is based on total risk while RVAR is based on systematic risk.
b. RVAR is based on total risk while RVOL is based on systematic risk.
c. RVAR is based on unsystematic risk while RVOL is based company unique risk.
d. RVOL is based on labor market risk while RVAR is based on unsystematic risk.

11. Which of the following is not true regarding the Markowitz theory?
a. Markowitz portfolio theory is considered a three-parameter model.
b. Under the Markowitz model, no portfolio on the efficient frontier dominates any other
portfolio on the efficient frontier.
c. The Markowitz model is cumbersome to work with due to the large variance-
covariance matrix needed for a set of stocks.
d. All of the above are true.

12. If a certain stock has a beta greater than 1.0, it means that
a. the stock's return is more volatile than that of the market portfolio.

17
b. an investor can eliminate the risk by combining it with another stock that has a
negative beta.
c. an investor will earn a higher return on his stock than that on the market portfolio.
d. the stock is less risky than the market portfolio.

13. Which of the following statements about bond prices is FALSE?

a. Bond price volatility and time to maturity are directly related.
b. A decrease in yields raises prices more than an increase in yields lowers prices.
c. Bond price fluctuations and bond coupons are directly related.
d. Bond prices move inversely to bond yields.

14. If an investor strongly believes that the stock market is going to have a sharp decline
shortly, he or she could maximize profit by
a. short selling stock-index futures.
b. long the stock-index futures.
c. using stock option to hedge his position.
d. sell all his shares.

15. Which of the following statements concerning the stock market and the economy is
true?
a. The stock market generally leads the economy.
b. The stock market generally follows the economy.
c. The stock market has an inverse relationship with the economy.
d. The stock market has little relationship with the economy.

16. Current stock prices reflect:

a. investors' confidence in the current economy.
b. investors' confidence in the current administration.
c. investors' expectations of the future.
d. investors' attitudes about the past market.

17. The required rate of return for a common stock is defined as the:
a. expected return given an assumed set of probabilities and expected cash flows on the
stock.
b. minimum expected return necessary to induce an investor to purchase the stock.
c. maximum expected return based on estimates of expected cashflows from the stock.
d. expected return after evaluation of the risk on the stock has been taken.

18.Which of the following statements regarding changes in bond prices relative to changes
in market yields is true?
a. Short-term bond prices will increase more than long-term bond prices if market yields
increase.
b. Short-term bond prices will increase less than long-term bond prices if market yields
decrease.
c. Short-term bond prices will increase more than long-term bond prices if market yields
decrease.

18
d. Short-term bond prices will remain constant and long-term bond prices will increase
if market yields decrease.

19. A coworker who is also a friend tells you that he has major concerns about a large
project and plans to tell the vice president about his concern. You just learned the vice
president has been known to fire people who have been opposing this project. Do you
encourage your friend to be honest anyway?
a. Yes, honesty is always the best policy.
b. No, I reveal the dangers of the decision and encourage the friend to protect his job.
c. I explain what I know but try to avoid encouraging my friend one way or another.
d. You should not voice your opinion at all since it is not your concern.

20. You are an engineering office manager and one upper-level manager has repeatedly
used the company credit card for personal expenses. How do you handle the situation?
a. I do nothing. The person is higher than I am in the company, so it must be OK.
b. I confront the person and hope that he will pay me off.
c. I confront the person and reveal what I know to a higher-level manager or someone
in human resources.
d. I will resign.

SECTION B (80 MARKS)

Answer ALL questions.

Question 1

a) Carefully describe the risk-return tradeoff faced by all investors. (10m)

b) “A risk-averse investor will not assume risk.” Agree or disagree with this
statement, and explain your reasoning.(10m)

Question 2

a) How do lending possibilities change the Markowitz model? borrowing

possibilities. (10m)
b) The expected return for the market is 10 percent, and the MGS – 3 months is 5
percent. The following information is available for each of eight stocks.

Stock Beta E(Ri)

1 0.8 13
2 1.4 12
3 0.6 10
4 1.2 13
5 1.0 9
6 1.7 11
7 0.7 6
8 0.2 14

19
 Required

i) Calculate the required return for each stock. (5m)

ii) Assume that an investor, using fundamental analysis, develops the estimates
of expected return labeled E (Ri) for these stocks. Determine which stocks are
undervalued and which are overvalued. (3m)
iii) What is the market’s risk premium? (2m)

Question 3

a) What are the variables that affect the P/E ratio? Is the effect direct or inverse for
each component? (5m)
b) The Horex Tires Supply Company sells at $37 per share, and Michael Wong, the
CEO of this well – known Research Rubber firm, estimates the latest 12-month
earnings are $4.00 per share with a dividend payout of 50 percent. Michael Wong’s
earnings estimates are very accurate.

Required
i) What is Michael Wong’s current P/E ratio? (5m)
ii) If an investor expects earnings to grow by 10 percent a year, what is the
projected price for next year if the P/E ratio remains unchanged? (5m)
iii) Michael Wong’s analyzes the data and estimates that the payout ratio will
remain the same. Assume the expected growth rate of dividend is 10 percent, and
an investor has a required rate of return of 16 percent, would this stock be a good
buy? Why or why not? (5m)

Question 4

a) How do forward contracts differ from futures contracts? (10m)

b) Calculate, using the Black-Scholes formula, the value of a call and put option
given the following information: (10m)

Interest rate = 8%
Time to expiration = 90 days
Stock price = $50.00
Exercise price = $40
Standard deviation = 0.3

20
 Department of Accounting &
Finance

ACADEMIC INTEGRITY

Honesty and Responsibility

Academic integrity is an important tenet for HELP University. In pursuit of the highest
standards of academic integrity, the Department of Business Studies holds it students to
the highest ethical standards defined by the Rules and Regulations section of the
Academic Handbook. All students at the Department of Business Studies are subjected to
and are bound by the Student Academic Misconduct Rule to assure academic honesty.
Students are required to sign a pledge on the assignment cover sheet before submitting
your assignments to the Department of Business Studies.

What is Plagiarism?
Plagiarism is academic dishonesty or academic theft, and it is a serious academic offence.
Plagiarism includes, but is not limited to, the followings:
1. quote, paraphrase or summarize someone else’s ideas, theories or data, in whole or
in part, without appropriate acknowledgement
2. borrow ideas, opinion or words, in whole or in part, from other sources without
properly crediting the author(s)
3. use any facts, statistics, diagrams or graphs, in whole or in part, without
acknowledging the source clearly
4. claim or imply original authorship of someone else’s ideas, theories or data, in
whole or in part, as your own
5. employ or allow someone to help to revise, amend or write your work and pass off
as your own original work
6. collaborate with or allow other students to copy your work
7. draw on sources more than what you have acknowledged by citations

While a student is not discouraged to discuss an assignment with his/her friends or

classmates, the work he/she submits must be done by the student alone. If a student shares
his/her assignment with other students and they plagiarize it, the student is as guilty as
those students who plagiarized his/her assignment. All parties to plagiarism are considered
equally guilty. Under no circumstances should a student be involved in collusion with
other students unless he/she is permitted to work on an assignment jointly by the
lecturer/tutor. If a student is unsure what constitutes plagiarism, he/she is obliged to
consult the lecturer/tutor on the matter before submission of his/her assignment.

When and How to Reference?

Knowing when and how to cite is a student’s responsibility. If he/she is in doubt or need
more help on this matter, the student may consult the lecturer/tutor. The following list
comprises some of the sources a student will need to reference. The list is by no means
exhaustive, but simply consists of the most common sources used by students to complete
their work.
1. Books
2. Chapters in books

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 3. Journal articles
4. Conference papers
5. Newspaper articles
6. Magazines
7. Websites
8. Study guide

Students are advised to cite in the following cases [1]:

1. When he/she quotes two or more words verbatim, or even one word if it is used in
a way that is unique to the source
2. When he/she introduce facts that he/she have found in a source
3. When he/she paraphrase or summarize ideas, interpretations, or conclusions that
he/she find in a source
4. When he/she introduce information that is not common knowledge or that may be
considered common knowledge in your field, but the reader may not know it
5. When he/she borrow the plan or structure of a larger section of a source’s
argument (for example, using a theory from a source and analyzing the same three
case studies that the source uses)
6. When he/she build on another’s method found either in a source or from
collaborative work in a lab
7. When he/she build on another’s program in writing computer code or on a not-
commonly-known algorithm
8. When he/she collaborate with others in producing knowledge

In general, a referencing system requires two parts:

1. In-text citations
This is information about a source within the text of an assignment.
2. List of references
This is a list of all sources a student has used to research his/her assignment. It is
alphabetically arranged by author surname and appears immediately after the last
page of an assignment.

Different faculties or departments may have different requirement on how referencing for
an assignment should be done. The various formats used for in-text citations and list of
references are available in the following websites:
1. Harvard System (http://www.adelaide.edu.au/library/guide/gen/harvard.html)
2. Chicago Style (http://www.chicagomanualofstyle.org/index.html)
3. American Psychological Association or APA Style (http://www.apastyle.org)
4. Modern Language Association of America or MLA Style (http://www.mla.org)

Once a student has selected a referencing style for his/her assignment, he/she must follow
the same style consistently throughout the assignment. We strongly suggest that the
student consults the lecturer/tutor about which method to use before submission of his/her
assignment.

1
http://www.yale.edu/bass/writing/sources/plagiarism/warning.html, accessed May 18, 2008.

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What are the Procedures and Penalties for Plagiarism?
When a lecturer/tutor encounters a possible case of plagiarism, the lecturer/tutor shall
report the matter to the Head of the Department, who then initiates an investigation on the
matter. The following procedures would be carried out:
1. The lecturer/tutor shall provide evidence that substantiates an academic offence
has occurred. The following documentations must be ready prior to reporting of
alleged plagiarism:
a. Copy of the alleged plagiarized assignment
b. Copy of the source material (e.g. articles, websites, newspaper, etc.)
c. Report of plagiarism
d. Any other information that would support the claim of plagiarism
2. If the evidence warrants an accusation of academic offence, the Head of
Department shall establish a Board of Inquiry comprising 3 academic staff. The
Department shall provide all necessary documentations, including report on prior
academic offences if applicable, to the Board of Inquiry.
3. The Board of Inquiry shall put the matter to the student in writing and give him/her
an opportunity to respond to the accusation within 3 working days.
4. The student will be required to attend a meeting with the Board of Inquiry. After
meeting the student, the Board of Inquiry shall decide whether or not the alleged
plagiarism has occurred. The following documentations shall be submitted to the
Head of Department at the end of the meeting:
a. Findings of the investigation
b. Recommended action(s) to be taken or imposed
5. The Head of Department shall review the Board of Inquiry’s report with
supporting evidence and shall decide on an appropriate action(s) based on the
recommendation of the Board of Inquiry.
6. The decision of the Head of Department shall be put in writing to the student.
Copies of all documentations will be retained in the Department.
7. If the student feels that he/she has been unfairly accused or treated, the student may
appeal to the Head of Department within 5 working days.
8. The Head of Department shall review the appeal and the final decision will be
communicated to the student in writing and a copy will be kept with the
Department. Once a determination of plagiarism and penalty has been made by the
Head of Department, the investigative process will be deemed to have ended and
the student will not be allowed to appeal.

Possible penalties for plagiarism range from mark reduction for the assignment to
expulsion from the University. The student will not be allowed to make up the assignment.
If plagiarism has been found to have occurred, the Department will take action(s) as
determined by the forms of plagiarism implicated:

1. Complete plagiarism
Verbatim copying another person’s work without acknowledgement
1st offence : A grade of “F” in the subject and a warning letter will be
issued
nd
2 offence : Expulsion from the University at the discretion of the Head of
Department

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 2. Substantial plagiarism
Near-verbatim copying another person’s work by simply altering the order of the
sentences or the format of presentation or by changing a few words or phrases
without acknowledgement.
1st offence : Zero mark on the assignment and a warning letter will be
issued
2nd offence : A grade of “F” in the subject and a warning letter will be
issued
rd
3 offence : Expulsion from the University at the discretion of the Head of
Department
3. Minimal plagiarism
Acknowledgement is made but paraphrasing by changing and/or eliminating some
words
1st offence : Deduction of 50% of available marks on the assignment and a
warning letter will be issued
2nd offence : A grade of “F” in the subject and a warning letter will be
issued
3rd offence : Expulsion from the University at the discretion of the Head of
Department
4. Unintentional plagiarism
Insufficient acknowledgement by not applying citation or quotation marks
correctly
1st offence : Deduction of up to 50% of available marks on the assignment
and a warning letter will be issued
2nd offence : A grade of “F” in the subject and a warning letter will be
issued
3rd offence : Expulsion from the University at the discretion of the Head of
Department
Pleading ignorance or unintentional plagiarism does not constitute valid reasons for
plagiarism and will not avoid the penalties from being imposed. Excuses for acts of
plagiarism such as the following, but not limited to, will not be entertained:
1. I don’t have time to do the assignment
2. I have too many assignments due on the same day
3. I don’t know, I really didn’t do it
4. I am not aware
5. I don’t understand what plagiarism means
6. I have no intention to plagiarize
7. I forgot to cite the reference
8. I forgot to include the bibliography
9. My English is not good
10. My lecturer/tutor did not explain to me
11. In my country, it is alright to copy someone else’s work
12. My friend copied my assignment when I let him/her to look at my assignment
13. My friend copied my assignment when I allow him/her to use my laptop
14. I did my assignment in the computer lab, someone must have copied my work
15. I asked my friend to submit my assignment and he/she copied my work
16. I discussed my assignment with my friends, so our answers are the same/similar
17. Even though I do not have in-text citation but I have bibliography/reference list

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Students should be reminded that it is their responsibilities to take due care throughout
their written work to effectively reference or cite when they use others’ ideas from any
source.

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