PORTFOLIO MANAGEMENT

FIN3IPM

2020

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.

School: La Trobe Business School (Pre 2022)

Credit points: 15

Subject Co-ordinator: Tony Martin

Available to Study Abroad/Exchange Students: Yes

Subject year level: Year Level 3 - UG

Exchange Students: No

Available as Elective: No

Learning Activities: N/A

Capstone subject: No

Subject particulars

Subject rules

Prerequisites: FIN1FOF OR FIN2FIN

Co-requisites: N/A

Incompatible subjects: N/A

Equivalent subjects: N/A

Quota Management Strategy: N/A

Quota-conditions or rules: N/A

Special conditions: N/A

Minimum credit point requirement: N/A

Assumed knowledge: N/A

Learning resources

Principles of Investments

Resource Type: Book

Resource Requirement: Prescribed

Author: Bodie, Z., Drew, M., Basu, A., Kane, A., and Marcus, A

Year: N/A

Edition/Volume: 1st Edition

Publisher: McGraw Hill

ISBN: N/A

Chapter/article title: N/A

Chapter/issue: N/A

URL: N/A

Other description: N/A

Source location: N/A

Career Ready

Career-focused: No

Work-based learning: No

Self sourced or Uni sourced: N/A

Entire subject or partial subject: N/A

Total hours/days required: N/A

Location of WBL activity (region): N/A

WBL addtional requirements: N/A

Graduate capabilities & intended learning outcomes

Graduate Capabilities

COMMUNICATION - Communicating and Influencing

DISCIPLINE KNOWLEDGE AND SKILLS

INQUIRY AND ANALYSIS - Creativity and Innovation

INQUIRY AND ANALYSIS - Critical Thinking and Problem Solving

INQUIRY AND ANALYSIS - Research and Evidence-Based Inquiry

PERSONAL AND PROFESSIONAL - Adaptability and Self-Management

Intended Learning Outcomes

01. Formulate the risk return trade-off encapsulated in portfolio theory and the Markowitz model

02. Justify the CAPM and its alternative the APT and critique these theories using empirical evidence.

03. Examine the relevance of the term structure of interest rates and relate duration to the management of bond portfolios

04. Analyse the components of the investment process and the central role of asset allocation decisions

05. Justify how industry-wide factors and key macroeconomic factors affect financial asset valuation.

06. Apply the common measures of portfolio performance evaluation and evaluate the issues relating to active portfolio management

Melbourne (Bundoora), 2020, Semester 1, Day

Overview

Online enrolment: Yes

Maximum enrolment size: N/A

Enrolment information: N/A

Subject Instance Co-ordinator: Tony Martin

Class requirements

LectureWeek: 10 - 22
One 2.00 hours lecture per week on weekdays during the day from week 10 to week 22 and delivered via face-to-face.

TutorialWeek: 11 - 22
One 1.00 hour tutorial per week on weekdays during the day from week 11 to week 22 and delivered via face-to-face.

Assessments

Assessment element	Comments	Category	Contribution	Hurdle	%	ILO*
One mid-semester test60-minute test of multiple choice and short answer questions	N/A	N/A	N/A	No	20	SILO1, SILO2
One 3-hour final examination	N/A	N/A	N/A	No	60	SILO1, SILO2, SILO3, SILO4, SILO5, SILO6
Weekly online quizzesStudents need to answer a set of multiple choice questions on LMS starting from Week 2. There are 10 quizzes in total. (Equivalent to a 500 word assessment)	N/A	N/A	N/A	No	20	SILO1, SILO2, SILO3, SILO4, SILO5, SILO6

Melbourne (Bundoora), 2020, Semester 2, Day

Overview

Online enrolment: Yes

Maximum enrolment size: N/A

Enrolment information: N/A

Subject Instance Co-ordinator: Tony Martin

Class requirements

LectureWeek: 31 - 43
One 2.00 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 1.00 hour tutorial per week on weekdays during the day from week 31 to week 43 and delivered via face-to-face.

Assessments

Assessment element	Comments	Category	Contribution	Hurdle	%	ILO*
One mid-semester test60-minute test of multiple choice and short answer questions	N/A	N/A	N/A	No	20	SILO1, SILO2
One 3-hour final examination	N/A	N/A	N/A	No	60	SILO1, SILO2, SILO3, SILO4, SILO5, SILO6
Weekly online quizzesStudents need to answer a set of multiple choice questions on LMS starting from Week 2. There are 10 quizzes in total. (Equivalent to a 500 word assessment)	N/A	N/A	N/A	No	20	SILO1, SILO2, SILO3, SILO4, SILO5, SILO6

Vietnam (Hanoi University), 2020, Semester 2, Day

Overview

Online enrolment: Yes

Maximum enrolment size: N/A

Enrolment information: N/A

Subject Instance Co-ordinator: Tony Martin

Class requirements

LectureWeek: 31 - 43
One 2.00 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 1.00 hour tutorial per week on weekdays during the day from week 31 to week 43 and delivered via face-to-face.

Assessments

Assessment element	Comments	Category	Contribution	Hurdle	%	ILO*
One mid-semester test60-minute test of multiple choice and short answer questions	N/A	N/A	N/A	No	20	SILO1, SILO2
One 3-hour final examination	N/A	N/A	N/A	No	60	SILO1, SILO2, SILO3, SILO4, SILO5, SILO6
Weekly online quizzesStudents need to answer a set of multiple choice questions on LMS starting from Week 2. There are 10 quizzes in total. (Equivalent to a 500 word assessment)	N/A	N/A	N/A	No	20	SILO1, SILO2, SILO3, SILO4, SILO5, SILO6

Sydney, 2020, Study period 1, Day

Overview

Online enrolment: Yes

Maximum enrolment size: N/A

Enrolment information: N/A

Subject Instance Co-ordinator: Tony Martin

Class requirements

LectureWeek: 10 - 22
One 2.00 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 1.00 hour tutorial per week on weekdays during the day from week 10 to week 22 and delivered via face-to-face.

Assessments

Assessment element	Comments	Category	Contribution	Hurdle	%	ILO*
One mid-semester test60-minute test of multiple choice and short answer questions	N/A	N/A	N/A	No	20	SILO1, SILO2
One 3-hour final examination	N/A	N/A	N/A	No	60	SILO1, SILO2, SILO3, SILO4, SILO5, SILO6
Weekly online quizzesStudents need to answer a set of multiple choice questions on LMS starting from Week 2. There are 10 quizzes in total. (Equivalent to a 500 word assessment)	N/A	N/A	N/A	No	20	SILO1, SILO2, SILO3, SILO4, SILO5, SILO6

Sydney, 2020, Study period 2, Day

Overview

Online enrolment: Yes

Maximum enrolment size: N/A

Enrolment information: N/A

Subject Instance Co-ordinator: Tony Martin

Class requirements

Lecture/FilmWeek: 31 - 42
One 2.00 hours lecture/film per week on weekdays during the day from week 31 to week 42 and delivered via face-to-face.

TutorialWeek: 31 - 42
One 1.00 hour tutorial per week on weekdays during the day from week 31 to week 42 and delivered via face-to-face.

Assessments

Assessment element	Comments	Category	Contribution	Hurdle	%	ILO*
One mid-semester test60-minute test of multiple choice and short answer questions	N/A	N/A	N/A	No	20	SILO1, SILO2
One 3-hour final examination	N/A	N/A	N/A	No	60	SILO1, SILO2, SILO3, SILO4, SILO5, SILO6
Weekly online quizzesStudents need to answer a set of multiple choice questions on LMS starting from Week 2. There are 10 quizzes in total. (Equivalent to a 500 word assessment)	N/A	N/A	N/A	No	20	SILO1, SILO2, SILO3, SILO4, SILO5, SILO6