fin3ipm investmnt
INVESTMENT AND PORTFOLIO MANAGEMENT
FIN3IPM
2015
Credit points: 15
Subject outline
This subject focuses on the principles of investment. The key components of the subject include portfolio theory and the application of risk and return concepts to portfolio construction. The subject looks at equilibrium in equity markets, including CAPM as a theory of asset pricing. This leads to the study of the market model and multi-factor models of security returns. Students will also be introduced to the valuation of equity securities. Finally, students will examine portfolio theory and its practical application to portfolio evaluation and management as it relates to both equity and bond portfolios.
SchoolLa Trobe Business School
Credit points15
Subject Co-ordinatorEdward Podolski-Boczar
Available to Study Abroad StudentsYes
Subject year levelYear Level 3 - UG
Exchange StudentsYes
Subject particulars
Subject rules
Prerequisites FIN2FIN or FIN1FOF or BUS1AFB
Co-requisitesN/A
Incompatible subjectsN/A
Equivalent subjectsN/A
Special conditionsN/A
Learning resources
Readings
| Resource Type | Title | Resource Requirement | Author and Year | Publisher |
|---|---|---|---|---|
| Readings | Principles of Investments | Prescribed | Bodie, Z., Drew, M., Basu, A., Kane, A., and Marcus, A (2015) | McGraw Hill |
Graduate capabilities & intended learning outcomes
01. Formulate the risk return trade-off encapsulated in portfolio theory and the Markowitz model
- Activities:
- Lectures and tutorials
- Related graduate capabilities and elements:
- Inquiry and Analytical Skills(Critical Thinking,Creative Problem-solving,Inquiry/Research)
- Inquiry and Analytical Skills(Critical Thinking,Creative Problem-solving,Inquiry/Research)
- Inquiry and Analytical Skills(Critical Thinking,Creative Problem-solving,Inquiry/Research)
- Discipline -Specific Knowledge and Skills(Discipline-Specific Knowledge and Skills)
02. Justify the CAPM and its alternative the APT and critique these theories using empirical evidence.
- Activities:
- Lectures and tutorials
- Related graduate capabilities and elements:
- Inquiry and Analytical Skills(Critical Thinking,Creative Problem-solving,Inquiry/Research)
- Inquiry and Analytical Skills(Critical Thinking,Creative Problem-solving,Inquiry/Research)
- Inquiry and Analytical Skills(Critical Thinking,Creative Problem-solving,Inquiry/Research)
- Discipline -Specific Knowledge and Skills(Discipline-Specific Knowledge and Skills)
03. Estimate the value of fixed income securities, understand the relevance of the term structure of interest rates and apply duration to the management of bond portfolios
- Activities:
- Lectures and tutorials
- Related graduate capabilities and elements:
- Inquiry and Analytical Skills(Critical Thinking,Creative Problem-solving,Inquiry/Research)
- Inquiry and Analytical Skills(Critical Thinking,Creative Problem-solving,Inquiry/Research)
- Inquiry and Analytical Skills(Critical Thinking,Creative Problem-solving,Inquiry/Research)
- Discipline -Specific Knowledge and Skills(Discipline-Specific Knowledge and Skills)
04. Value share values using multi-stage discount and other equity valuation models
- Activities:
- Lectures and tutorials
- Related graduate capabilities and elements:
- Inquiry and Analytical Skills(Critical Thinking,Creative Problem-solving,Inquiry/Research)
- Inquiry and Analytical Skills(Critical Thinking,Creative Problem-solving,Inquiry/Research)
- Inquiry and Analytical Skills(Critical Thinking,Creative Problem-solving,Inquiry/Research)
- Discipline -Specific Knowledge and Skills(Discipline-Specific Knowledge and Skills)
05. Justify how industry-wide factors and key macroeconomic factors affect financial asset valuation.
- Activities:
- Lectures and tutorials
- Related graduate capabilities and elements:
- Inquiry and Analytical Skills(Critical Thinking,Creative Problem-solving,Inquiry/Research)
- Inquiry and Analytical Skills(Critical Thinking,Creative Problem-solving,Inquiry/Research)
- Inquiry and Analytical Skills(Critical Thinking,Creative Problem-solving,Inquiry/Research)
- Discipline -Specific Knowledge and Skills(Discipline-Specific Knowledge and Skills)
06. Apply the common measures of portfolio performance evaluation and evaluate the issues relating to active portfolio management
- Activities:
- Lectures and tutorials
- Related graduate capabilities and elements:
- Inquiry and Analytical Skills(Critical Thinking,Creative Problem-solving,Inquiry/Research)
- Inquiry and Analytical Skills(Critical Thinking,Creative Problem-solving,Inquiry/Research)
- Inquiry and Analytical Skills(Critical Thinking,Creative Problem-solving,Inquiry/Research)
- Discipline -Specific Knowledge and Skills(Discipline-Specific Knowledge and Skills)
Subject options
Select to view your study options…
Melbourne, 2015, Semester 1, Day
Overview
Online enrolmentYes
Maximum enrolment sizeN/A
Enrolment information
Subject Instance Co-ordinatorEdward Podolski-Boczar
Class requirements
LectureWeek: 10 - 22
One 2.0 hours lecture other recurrence on weekdays during the day from week 10 to week 22 and delivered via face-to-face.
TutorialWeek: 11 - 22
One 1.0 hours tutorial other recurrence on weekdays during the day from week 11 to week 22 and delivered via face-to-face.
Assessments
| Assessment element | Comments | % | ILO* |
|---|---|---|---|
| one 1-hour mid-semester test | 10 | 01, 02, 03, 04, 05 | |
| one 3-hour final examination | 70 | 01, 02, 03, 04, 05, 06 | |
| tutorial participation | Students will be assessed throughout the semester on the level of their preparation for tutorial (ie. completion of tutorial questions) and the level of participation in classroom discussions. | 10 | 01, 02, 03, 04, 05, 06 |
| Weekly online quiz | 10 | 01, 02, 03, 04, 05, 06 |
Melbourne, 2015, Semester 2, Day
Overview
Online enrolmentYes
Maximum enrolment sizeN/A
Enrolment information
Subject Instance Co-ordinatorEdward Podolski-Boczar
Class requirements
LectureWeek: 31 - 43
One 2.0 hours lecture other recurrence on weekdays during the day from week 31 to week 43 and delivered via face-to-face.
TutorialWeek: 31 - 43
One 1.0 hours tutorial other recurrence on weekdays during the day from week 31 to week 43 and delivered via face-to-face.
Assessments
| Assessment element | Comments | % | ILO* |
|---|---|---|---|
| one 1-hour mid-semester test | 10 | 01, 02, 03, 04, 05 | |
| one 3-hour final examination | 70 | 01, 02, 03, 04, 05, 06 | |
| tutorial participation | Students will be assessed throughout the semester on the level of their preparation for tutorial (ie. completion of tutorial questions) and the level of participation in classroom discussions. | 10 | 01, 02, 03, 04, 05, 06 |
| Weekly online quiz | 10 | 01, 02, 03, 04, 05, 06 |
Sydney, 2015, ACN Semester 1, Day
Overview
Online enrolmentYes
Maximum enrolment sizeN/A
Enrolment information
Subject Instance Co-ordinatorEdward Podolski-Boczar
Class requirements
LectureWeek: 11 - 22
One 2.0 hours lecture other recurrence on weekdays during the day from week 11 to week 22 and delivered via face-to-face.
TutorialWeek: 12 - 22
One 1.0 hours tutorial per week on weekdays during the day from week 12 to week 22 and delivered via face-to-face.
Assessments
| Assessment element | Comments | % | ILO* |
|---|---|---|---|
| one 1-hour mid-semester test | 10 | 01, 02, 03, 04, 05 | |
| one 3-hour final examination | 70 | 01, 02, 03, 04, 05, 06 | |
| tutorial participation | Students will be assessed throughout the semester on the level of their preparation for tutorial (ie. completion of tutorial questions) and the level of participation in classroom discussions. | 10 | 01, 02, 03, 04, 05, 06 |
| Weekly online quiz | 10 | 01, 02, 03, 04, 05, 06 |
Sydney, 2015, ACN Summer Semester, Day
Overview
Online enrolmentYes
Maximum enrolment sizeN/A
Enrolment information
Subject Instance Co-ordinatorEdward Podolski-Boczar
Class requirements
TutorialWeek: 46 - 53
One 1.0 hours tutorial per week on weekdays during the day from week 46 to week 53 and delivered via face-to-face.
LectureWeek: 45 - 53
One 2.0 hours lecture per week on weekdays during the day from week 45 to week 53 and delivered via face-to-face.
Assessments
| Assessment element | Comments | % | ILO* |
|---|---|---|---|
| one 1-hour mid-semester test | 10 | 01, 02, 03, 04, 05 | |
| one 3-hour final examination | 70 | 01, 02, 03, 04, 05, 06 | |
| tutorial participation | Students will be assessed throughout the semester on the level of their preparation for tutorial (ie. completion of tutorial questions) and the level of participation in classroom discussions. | 10 | 01, 02, 03, 04, 05, 06 |
| Weekly online quiz | 10 | 01, 02, 03, 04, 05, 06 |
Vietnam, 2015, Semester 2, Day
Overview
Online enrolmentYes
Maximum enrolment sizeN/A
Enrolment information
Subject Instance Co-ordinatorEdward Podolski-Boczar
Class requirements
LectureWeek: 31 - 43
One 2.0 hours lecture other recurrence on weekdays during the day from week 31 to week 43 and delivered via face-to-face.
Assessments
| Assessment element | Comments | % | ILO* |
|---|---|---|---|
| one 1-hour mid-semester test | 10 | 01, 02, 03, 04, 05 | |
| one 3-hour final examination | 70 | 01, 02, 03, 04, 05, 06 | |
| tutorial participation | Students will be assessed throughout the semester on the level of their preparation for tutorial (ie. completion of tutorial questions) and the level of participation in classroom discussions. | 10 | 01, 02, 03, 04, 05, 06 |
| Weekly online quiz | 10 | 01, 02, 03, 04, 05, 06 |