PORTFOLIO MANAGEMENT

FIN3IPM

2021

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-ordinatorTony Martin

Available to Study Abroad/Exchange StudentsYes

Subject year levelYear Level 3 - UG

Available as ElectiveNo

Learning ActivitiesLectures and tutorials

Capstone subjectNo

Subject particulars

Subject rules

PrerequisitesFIN1FOF OR FIN2FIN

Co-requisitesN/A

Incompatible subjectsN/A

Equivalent subjectsN/A

Quota Management StrategyN/A

Quota-conditions or rulesN/A

Special conditionsN/A

Minimum credit point requirementN/A

Assumed knowledgeN/A

Readings

Principles of Investments

Resource TypePrescribed

Resource RequirementN/A

AuthorBodie, Z., Drew, M., Basu, A., Kane, A., and Marcus, A

YearN/A

Edition/Volume1st Edition

PublisherMcGraw Hill

ISBN9780071012386

Chapter/article titleN/A

Chapter/issueN/A

URLN/A

Other descriptionN/A

Source locationN/A

Career Ready

Career-focusedNo

Work-based learningNo

Self sourced or Uni sourcedN/A

Entire subject or partial subjectN/A

Total hours/days requiredN/A

Location of WBL activity (region)N/A

WBL addtional requirementsN/A

Graduate capabilities & intended learning outcomes

Graduate Capabilities

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

Subject options

Select to view your study options…

Start date between: and    Key dates

Sydney, 2021, Semester 1, Day

Overview

Online enrolmentYes

Maximum enrolment sizeN/A

Subject Instance Co-ordinatorTony Martin

Class requirements

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

Assessments

Assessment elementCommentsCategoryContributionHurdle% ILO*

One mid-semester test 60-minute test of multiple choice and short answer questions

N/AOtherIndividualNo20 SILO1, SILO2

One 3-hour final examination

N/ACentral examIndividualNo60 SILO1, SILO2, SILO3, SILO4, SILO5, SILO6

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. (Equivalent to a 500 word assessment)

N/AQuizzesIndividualNo20 SILO1, SILO2, SILO3, SILO4, SILO5, SILO6

Melbourne (Bundoora), 2021, Semester 2, Day

Overview

Online enrolmentYes

Maximum enrolment sizeN/A

Subject Instance Co-ordinatorTony Martin

Class requirements

LectureWeek: 30 - 42
One 2.00 h lecture per week on weekdays during the day from week 30 to week 42 and delivered via face-to-face.

TutorialWeek: 30 - 42
One 1.00 h tutorial per week on weekdays during the day from week 30 to week 42 and delivered via face-to-face.

Assessments

Assessment elementCommentsCategoryContributionHurdle% ILO*

One mid-semester test 60-minute test of multiple choice and short answer questions

N/AOtherIndividualNo20 SILO1, SILO2

One 3-hour final examination

N/ACentral examIndividualNo50 SILO1, SILO2, SILO3, SILO4, SILO5, SILO6

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. (Equivalent to a 500 word assessment)

N/AQuizzesIndividualNo20 SILO1, SILO2, SILO3, SILO4, SILO5, SILO6

Completion of the Bloomberg Market Concepts (BMC) Certificate

N/AOtherIndividualNo10 SILO3, SILO4, SILO5, SILO6

Sydney, 2021, Semester 2, Day

Overview

Online enrolmentYes

Maximum enrolment sizeN/A

Subject Instance Co-ordinatorTony Martin

Class requirements

Lecture/FilmWeek: 30 - 42
One 2.00 h lecture/film per week on weekdays during the day from week 30 to week 42 and delivered via face-to-face.

TutorialWeek: 30 - 42
One 1.00 h tutorial per week on weekdays during the day from week 30 to week 42 and delivered via face-to-face.

Assessments

Assessment elementCommentsCategoryContributionHurdle% ILO*

One mid-semester test 60-minute test of multiple choice and short answer questions

N/AOtherIndividualNo20 SILO1, SILO2

One 3-hour final examination

N/ACentral examIndividualNo60 SILO1, SILO2, SILO3, SILO4, SILO5, SILO6

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. (Equivalent to a 500 word assessment)

N/AQuizzesIndividualNo20 SILO1, SILO2, SILO3, SILO4, SILO5, SILO6

Vietnam (Hanoi University), 2021, Semester 2, Day

Overview

Online enrolmentYes

Maximum enrolment sizeN/A

Subject Instance Co-ordinatorTony Martin

Class requirements

LectureWeek: 30 - 42
One 2.00 h lecture per week on weekdays during the day from week 30 to week 42 and delivered via face-to-face.

TutorialWeek: 30 - 42
One 1.00 h tutorial per week on weekdays during the day from week 30 to week 42 and delivered via face-to-face.

Assessments

Assessment elementCommentsCategoryContributionHurdle% ILO*

One mid-semester test 60-minute test of multiple choice and short answer questions

N/AOtherIndividualNo20 SILO1, SILO2

One 3-hour final examination

N/ACentral examIndividualNo60 SILO1, SILO2, SILO3, SILO4, SILO5, SILO6

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. (Equivalent to a 500 word assessment)

N/AQuizzesIndividualNo20 SILO1, SILO2, SILO3, SILO4, SILO5, SILO6