fin3ipm portfolio management
PORTFOLIO MANAGEMENT
FIN3IPM
2019
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. You will look 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. You will also be introduced to the valuation of equity securities. Finally, you 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-ordinatorKok-Boon Oh
Available to Study Abroad StudentsYes
Subject year levelYear Level 3 - UG
Exchange StudentsYes
Subject particulars
Subject rules
Prerequisites FIN2FIN or FIN1FOF
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 | McGraw Hill , 1st Edition |
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:
- Literacies and Communication Skills(Writing,Quantitative Literacy)
- Literacies and Communication Skills(Writing,Quantitative Literacy)
- 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)
- Personal and Professional Skills(Autonomy and independence)
- 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:
- Literacies and Communication Skills(Writing,Quantitative Literacy)
- Literacies and Communication Skills(Writing,Quantitative Literacy)
- 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)
- Personal and Professional Skills(Autonomy and independence)
- Discipline -Specific Knowledge and Skills(Discipline-Specific Knowledge and Skills)
03. Examine the relevance of the term structure of interest rates and relate duration to the management of bond portfolios
- Activities:
- Lectures and tutorials
- Related graduate capabilities and elements:
- Literacies and Communication Skills(Writing,Quantitative Literacy)
- Literacies and Communication Skills(Writing,Quantitative Literacy)
- 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)
- Personal and Professional Skills(Autonomy and independence)
- Discipline -Specific Knowledge and Skills(Discipline-Specific Knowledge and Skills)
04. Analyse the components of the investment process and the central role of asset allocation decisions
- Activities:
- Lectures and tutorials
- Related graduate capabilities and elements:
- Literacies and Communication Skills(Writing,Quantitative Literacy)
- Literacies and Communication Skills(Writing,Quantitative Literacy)
- 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)
- Personal and Professional Skills(Autonomy and independence)
- 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:
- Literacies and Communication Skills(Writing,Quantitative Literacy)
- 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)
- Personal and Professional Skills(Autonomy and independence)
- 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:
- Literacies and Communication Skills(Writing,Quantitative Literacy)
- Literacies and Communication Skills(Writing,Quantitative Literacy)
- 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)
- Personal and Professional Skills(Autonomy and independence)
- Discipline -Specific Knowledge and Skills(Discipline-Specific Knowledge and Skills)
Subject options
Select to view your study options…
Melbourne, 2019, Semester 1, Day
Overview
Online enrolmentYes
Maximum enrolment sizeN/A
Enrolment information
Subject Instance Co-ordinatorKok-Boon Oh
Class requirements
TutorialWeek: 11 - 22
One 1.0 hours tutorial per week on weekdays during the day from week 11 to week 22 and delivered via face-to-face.
LectureWeek: 10 - 22
One 2.0 hours lecture per week on weekdays during the day from week 10 to week 22 and delivered via face-to-face.
Assessments
| Assessment element | Comments | % | ILO* |
|---|---|---|---|
| One mid-semester test | 60-minute test of multiple choice and short answer questions | 20 | 01, 02 |
| One 3-hour final examination | 60 | 01, 02, 03, 04, 05, 06 | |
| Weekly online quizzes | Students need to answer a set of multiple choice questions on LMS starting from Week 2. There are 10 quizzes in total. (Broadly equivalent to a 500 word assessment) | 20 | 01, 02, 03, 04, 05, 06 |
Melbourne, 2019, Semester 2, Day
Overview
Online enrolmentYes
Maximum enrolment sizeN/A
Enrolment information
Subject Instance Co-ordinatorKok-Boon Oh
Class requirements
TutorialWeek: 31 - 43
One 1.0 hours tutorial per week on weekdays during the day from week 31 to week 43 and delivered via face-to-face.
LectureWeek: 31 - 43
One 2.0 hours lecture per week on weekdays during the day from week 31 to week 43 and delivered via face-to-face.
Assessments
| Assessment element | Comments | % | ILO* |
|---|---|---|---|
| One mid-semester test | 60-minute test of multiple choice and short answer questions | 20 | 01, 02 |
| One 3-hour final examination | 60 | 01, 02, 03, 04, 05, 06 | |
| Weekly online quizzes | Students need to answer a set of multiple choice questions on LMS starting from Week 2. There are 10 quizzes in total. (Broadly equivalent to a 500 word assessment) | 20 | 01, 02, 03, 04, 05, 06 |
Sydney, 2019, Study Period 1, Day
Overview
Online enrolmentYes
Maximum enrolment sizeN/A
Enrolment information
Subject Instance Co-ordinatorKok-Boon Oh
Class requirements
LectureWeek: 10 - 22
One 2.0 hours lecture per week on weekdays during the day from week 10 to week 22 and delivered via face-to-face.
TutorialWeek: 10 - 22
One 1.0 hours tutorial per week on weekdays during the day from week 10 to week 22 and delivered via face-to-face.
Assessments
| Assessment element | Comments | % | ILO* |
|---|---|---|---|
| One mid-semester test | 60-minute test of multiple choice and short answer questions | 20 | 01, 02 |
| One 3-hour final examination | 60 | 01, 02, 03, 04, 05, 06 | |
| Weekly online quizzes | Students need to answer a set of multiple choice questions on LMS starting from Week 2. There are 10 quizzes in total. (Broadly equivalent to a 500 word assessment) | 20 | 01, 02, 03, 04, 05, 06 |
Sydney, 2019, Study Period 3, Day
Overview
Online enrolmentYes
Maximum enrolment sizeN/A
Enrolment information
Subject Instance Co-ordinatorNgan Nguyen
Class requirements
Lecture/FilmWeek: 46
One 2.0 hours lecture/film per week on weekdays during the day in week 46 and delivered via face-to-face.
TutorialWeek: 46
One 1.0 hours tutorial per week on weekdays during the day in week 46 and delivered via face-to-face.
Assessments
| Assessment element | Comments | % | ILO* |
|---|---|---|---|
| One mid-semester test | 60-minute test of multiple choice and short answer questions | 20 | 01, 02 |
| One 3-hour final examination | 60 | 01, 02, 03, 04, 05, 06 | |
| Weekly online quizzes | Students need to answer a set of multiple choice questions on LMS starting from Week 2. There are 10 quizzes in total. (Broadly equivalent to a 500 word assessment) | 20 | 01, 02, 03, 04, 05, 06 |
Vietnam (Hanoi University), 2019, Semester 2, Day
Overview
Online enrolmentYes
Maximum enrolment sizeN/A
Enrolment information
Subject Instance Co-ordinatorKok-Boon Oh
Class requirements
LectureWeek: 31 - 43
One 2.0 hours lecture per week 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 per week on weekdays during the day from week 31 to week 43 and delivered via face-to-face.
Assessments
| Assessment element | Comments | % | ILO* |
|---|---|---|---|
| One mid-semester test | 60-minute test of multiple choice and short answer questions | 20 | 01, 02 |
| One 3-hour final examination | 60 | 01, 02, 03, 04, 05, 06 | |
| Weekly online quizzes | Students need to answer a set of multiple choice questions on LMS starting from Week 2. There are 10 quizzes in total. (Broadly equivalent to a 500 word assessment) | 20 | 01, 02, 03, 04, 05, 06 |