FNCE3001: Introduction to Financial Instruments and Markets
2026 A2. Research Project
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Introduction to Financial Instruments and Markets A2. Group Project Report (25%)
This project is worth 50 marks.
Formatting requirements:
(excluding references and appendices).
suitable group member will need to complete this assignment individually.
FNCE3001: Introduction to Financial Instruments and Markets
2026 A2. Research Project
Page | 2
Question 1 Market Efficiency, Behavioural Finance and Technical Analysis [Total: 25 Marks]
Pick one U.S. or Australian listed company. You will consider the daily share price of the
company for the time period from the 3 February 2025 to 2 March 2026. Provide a bar or
candlestick chart (or multiple charts) of the daily share price for the period above.
(3 marks)
Identify at least three days, where news stories, events or issues related to the company have
majorly impacted the share price. Evaluate and discuss the magnitude and direction of the
price changes (opening to close) of the instances you have identified. Were there any other
considerations (e.g., market, behavioural) besides the identified news articles that you
believe could have impacted the share price. (12 marks)
Next, use the live chart on the day you complete this part and two technical analysis tools
(e.g. chart patterns, technical indicators) from learning module 4 to make stock
recommendations (please take screenshot of the live charts and/or indicators). If you were
a current shareholder, would you buy, sell or hold this stock on the next trading day? Explain
your reasoning. (10 marks)
FNCE3001: Introduction to Financial Instruments and Markets
2026 A2. Research Project
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Question 2 Benchmark Comparison and Valuation Multiple [Total: 15 Marks]
You have decided to do further analysis of your chosen company in Question 1.
i) Identify and discuss at least one benchmark index you have chosen to compare with your
company. Explain the considerations behind your choice of benchmark index. Chart your
choice of benchmark index against your company’s share price over the same period in
Question 1. Compare and analyse their performance and explain the key differences
observed in the chart. In your opinion, what has been the main driver for the share price
movement? (8 Marks)
ii) Valuation multiples are often used to compare companies quickly. Identify an appropriate
valuation multiple/ratio and evaluate whether your company appears over, under or fairly
valued based on cross-sectional and/or time-series analysis. Explain the reasoning behind
your choice of multiple that you utilised for your analysis. Are there any limitations of
utilising multiples that you might need to consider? (7 Marks)
FNCE3001: Introduction to Financial Instruments and Markets
2026 A2. Research Project
Page | 4
Question 3 Ethics and Behavioural Finance [Total 10 Marks]
a) Jimmy just visited a restaurant for dinner. During dinner time, he overheard two customers
saying that company EFP will expect its workforce to go on strike after two weeks, which
will halt manufacturing and distribution of products. When Jimmy gets back home, he
immediately uses this information to update his analyst forecast on company EFP from a
buy to a sell. Please state and explain which CFA Code and Standard is most likely
breached/related. (3 marks)
FNCE3001: Introduction to Financial Instruments and Markets
2026 A2. Research Project
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b) Lisa is the founder and lead portfolio manager of TAZ and John is a trader for the firm. TAZ
is participating in private placements for two publicly listed commercial banks, and the
placement agents shared confidential information with Lisa and John about both
companies. In the days prior to the private placement, Lisa directed John to make short
sales in each stock. TAZ earned $10.8 million by using the discounted private placement
shares they received to cover the short sales. Please state and explain which CFA Code and
Standard is most likely breached/related. (3 marks)
FNCE3001: Introduction to Financial Instruments and Markets
2026 A2. Research Project
Page | 6
c) Assume that no new information or announcement has been released for Stock FNE in the
market over the past several days. Based on the 9-day price and trading volume pattern
shown in the chart, identify and explain two behavioural biases that could explain the
observed price streak and subsequent reversal, along with the changes in daily trading
volume. Please use the terminologies covered in the lecture. (4 marks)
FNCE3001: Introduction to Financial Instruments and Markets
2026 A2. Research Project
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Rubric:
Exceeds Expectations (70% – 100%) Meets expectations (50 69%) Below expectations (0 – 49%)
Q1. Market efficiency and
technical analysis (25 marks)
A bar or candlestick chart has been
provided for the investigation period
with correct labels.
Identified at least 3 news/events with
sources referenced and discussed the
impact of each event on the share
price including market/behavioural
impacts.
Clear discussion of the magnitude
and direction of the price changes
Used Live chart and discussed two
technical tools correctly.
Clear explanation of how the tools
support recommendation.
Recommendation consistent with the
analyses.
Chart provided but clarity
could be improved (e.g.
missing labels, incorrect dates)
Three events identified, but
some or limited discussion on
the news impact or
market/behavioural
considerations.
Used two technical tools.
Recommendation stated and
technical tools discussed, but
they are not clearly linked.
Live chart is required.
o No bar or candlestick chart.
o Incorrect time period.
o Less than three events
identified.
o No clear connection between
the events and the price
change.
o No discussion on the
magnitude and direction of the
price change or the news
impact.
o Only one tool or tools
incorrectly applied.
o No live chart screenshot.
o Poor or very limited discussion
on the use of technical tools
for stock recommendation.
Q2. Benchmark comparison and
valuation multiple (15 marks)
Clear and well-justified discussion of
an appropriate index for comparison.
Clear and accurate chart showing
both company and index
performance over the same period as
Question 1.
Thorough discussion of performance
comparison and the main drivers of
the companys price movement.
Appropriate valuation multiple/ratio
selected, with cross-sectional
analysis and/or time-series analysis
performed to evaluate the company.
Clear and accurate discussion of the
limitation of the chosen valuation
multiple/ratio.
Appropriate benchmark
selected but limited
justification.
Chart comparison provided
with only basic analysis.
Some discussion of
performance drivers.
Valuation multiple identified.
Superficial or no discussion of
cross-sectional or time-series
analysis, and the limitation of
the selected valuation
multiple/ratio.
o Inappropriate or no
benchmark selected.
o No chart comparison or
discussion.
o Very limited or no discussion
of valuation multiple/ratio.
o No discussion of limitation.
FNCE3001: Introduction to Financial Instruments and Markets
2026 A2. Research Project
Page | 8
Q3 Ethics and behavioural
finance (10 marks)
Correctly identifies relevant CFA
standards in the ethics questions.
Provides clear and accurate
explanation.
Correctly identifies two relevant
behavioural biases.
Clearly explains how each bias relates
to the observed patterns in the chart.
Correctly identifies the CFA
Standards, but the discussion is
weak or partially correct.
Minor inaccuracies in
behavioural bias terminology
or interpretation.
Explanation partially links
biases to the pattern.
o Incorrect identification of the
relevant CFA standards.
o Limited understanding of
behavioural concepts, biases
incorrectly identified or poorly
explained.
o Weak or no linkage to the
observed behaviour in the
chart.
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