General Information
Portfolio Analysis and Investment Management builds on the material presented in Fundamentals of Finance. In the introductory Finance subject, the building blocks consisting of both application and theory were introduced. In this subject, these fundamental concepts are explored in substantially greater detail in terms of their importance and relevance to practitioners. The theories underlying asset pricing models and efficient markets, portfolio formation and management are examined in detail. An introduction to options, futures and other derivative securities is also included.
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Details
Academic unit: Bond Business School Subject code: FINC13-303 Subject title: Portfolio Analysis and Investment Management Subject level: Undergraduate Semester/Year: January 2021 Credit points: 10.000 -
Delivery & attendance
Timetable: https://bond.edu.au/timetable Delivery mode: Standard Workload items: - Computer Lab: x12 (Total hours: 24) - Computer Lab 1
- Lecture: x12 (Total hours: 24) - Lecture 1
- Personal Study Hours: x12 (Total hours: 72) - Recommended study time & reviewing materials
Attendance and learning activities: Attendance at all class sessions is expected. Students are expected to notify the instructor of any absences with as much advance notice as possible. -
Resources
Prescribed resources: Books
- Zvi Bodie,Alex Kane,Alan Marcus (2018). Essentials of Investments. 11th Edition, McGraw-Hill Education
iLearn@Bond & Email: iLearn@Bond is the online learning environment at Bond University and is used to provide access to subject materials, lecture recordings and detailed subject information regarding the subject curriculum, assessment and timing. Both iLearn and the Student Email facility are used to provide important subject notifications. Additionally, official correspondence from the University will be forwarded to students’ Bond email account and must be monitored by the student. To access these services, log on to the Student Portal from the Bond University website as www.bond.edu.au
| Academic unit: | Bond Business School |
|---|---|
| Subject code: | FINC13-303 |
| Subject title: | Portfolio Analysis and Investment Management |
| Subject level: | Undergraduate |
| Semester/Year: | January 2021 |
| Credit points: | 10.000 |
| Timetable: | https://bond.edu.au/timetable |
|---|---|
| Delivery mode: | Standard |
| Workload items: |
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| Attendance and learning activities: | Attendance at all class sessions is expected. Students are expected to notify the instructor of any absences with as much advance notice as possible. |
| Prescribed resources: | Books
|
|---|---|
| iLearn@Bond & Email: | iLearn@Bond is the online learning environment at Bond University and is used to provide access to subject materials, lecture recordings and detailed subject information regarding the subject curriculum, assessment and timing. Both iLearn and the Student Email facility are used to provide important subject notifications. Additionally, official correspondence from the University will be forwarded to students’ Bond email account and must be monitored by the student. To access these services, log on to the Student Portal from the Bond University website as www.bond.edu.au |
Enrolment requirements
| Requisites: |
Nil |
|---|---|
| Assumed knowledge: |
Assumed knowledge is the minimum level of knowledge of a subject area that students are assumed to have acquired through previous study. It is the responsibility of students to ensure they meet the assumed knowledge expectations of the subject. Students who do not possess this prior knowledge are strongly recommended against enrolling and do so at their own risk. No concessions will be made for students’ lack of prior knowledge. Assumed Prior Learning (or equivalent):
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| Restrictions: |
Nil |
Assurance of learning
Assurance of Learning means that universities take responsibility for creating, monitoring and updating curriculum, teaching and assessment so that students graduate with the knowledge, skills and attributes they need for employability and/or further study.
At Bond University, we carefully develop subject and program outcomes to ensure that student learning in each subject contributes to the whole student experience. Students are encouraged to carefully read and consider subject and program outcomes as combined elements.
Program Learning Outcomes (PLOs)
Program Learning Outcomes provide a broad and measurable set of standards that incorporate a range of knowledge and skills that will be achieved on completion of the program. If you are undertaking this subject as part of a degree program, you should refer to the relevant degree program outcomes and graduate attributes as they relate to this subject.
Subject Learning Outcomes (SLOs)
On successful completion of this subject the learner will be able to:
- Demonstrate the ability to place orders in a virtual market to create a virtual portfolio.
- Apply appropriate models of investment risk and return to a given investment.
- Apply the concept of financial asset pricing to shares, interest rate securities and derivative securities.
- Apply strategies for assessing investment performance.
Generative Artificial Intelligence in Assessment
The University acknowledges that Generative Artificial Intelligence (Gen-AI) tools are an important facet of contemporary life. Their use in assessment is considered in line with students’ development of the skills and knowledge which demonstrate learning outcomes and underpin study and career success. Instructions on the use of Gen-AI are given for each assessment task; it is your responsibility to adhere to these instructions.
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Assessment details
Type Task % Timing* Outcomes assessed Computer-Aided Examination (Open) Assessment of material to date. 30% Week 6 (Mid-Semester Examination Period) 2 Written Report Practical application and analysis of course topics. 10% Week 12 1,2,3,4 Computer-Aided Examination (Open) Comprehensive assessment of all material. 40% Week 13 2,3,4 *Online Quiz Multiple choice quizzes conducted online with immediate feedback. 10% Weekly 2,3,4 *Class Participation In class performance including responses to Poll Everywhere, preparation prior to class, asking and answering questions during class, and leading lab sections in solving pre-assigned problems. 10% Ongoing 1,2,3,4 - * Assessment timing is indicative of the week that the assessment is due or begins (where conducted over multiple weeks), and is based on the standard University academic calendar
- C = Students must reach a level of competency to successfully complete this assessment.
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Assessment criteria
Assessment criteria
High Distinction 85-100 Outstanding or exemplary performance in the following areas: interpretative ability; intellectual initiative in response to questions; mastery of the skills required by the subject, general levels of knowledge and analytic ability or clear thinking. Distinction 75-84 Usually awarded to students whose performance goes well beyond the minimum requirements set for tasks required in assessment, and who perform well in most of the above areas. Credit 65-74 Usually awarded to students whose performance is considered to go beyond the minimum requirements for work set for assessment. Assessable work is typically characterised by a strong performance in some of the capacities listed above. Pass 50-64 Usually awarded to students whose performance meets the requirements set for work provided for assessment. Fail 0-49 Usually awarded to students whose performance is not considered to meet the minimum requirements set for particular tasks. The fail grade may be a result of insufficient preparation, of inattention to assignment guidelines or lack of academic ability. A frequent cause of failure is lack of attention to subject or assignment guidelines. Quality assurance
For the purposes of quality assurance, Bond University conducts an evaluation process to measure and document student assessment as evidence of the extent to which program and subject learning outcomes are achieved. Some examples of student work will be retained for potential research and quality auditing purposes only. Any student work used will be treated confidentially and no student grades will be affected.
| Type | Task | % | Timing* | Outcomes assessed |
|---|---|---|---|---|
| Computer-Aided Examination (Open) | Assessment of material to date. | 30% | Week 6 (Mid-Semester Examination Period) | 2 |
| Written Report | Practical application and analysis of course topics. | 10% | Week 12 | 1,2,3,4 |
| Computer-Aided Examination (Open) | Comprehensive assessment of all material. | 40% | Week 13 | 2,3,4 |
| *Online Quiz | Multiple choice quizzes conducted online with immediate feedback. | 10% | Weekly | 2,3,4 |
| *Class Participation | In class performance including responses to Poll Everywhere, preparation prior to class, asking and answering questions during class, and leading lab sections in solving pre-assigned problems. | 10% | Ongoing | 1,2,3,4 |
- * Assessment timing is indicative of the week that the assessment is due or begins (where conducted over multiple weeks), and is based on the standard University academic calendar
- C = Students must reach a level of competency to successfully complete this assessment.
Assessment criteria
| High Distinction | 85-100 | Outstanding or exemplary performance in the following areas: interpretative ability; intellectual initiative in response to questions; mastery of the skills required by the subject, general levels of knowledge and analytic ability or clear thinking. |
|---|---|---|
| Distinction | 75-84 | Usually awarded to students whose performance goes well beyond the minimum requirements set for tasks required in assessment, and who perform well in most of the above areas. |
| Credit | 65-74 | Usually awarded to students whose performance is considered to go beyond the minimum requirements for work set for assessment. Assessable work is typically characterised by a strong performance in some of the capacities listed above. |
| Pass | 50-64 | Usually awarded to students whose performance meets the requirements set for work provided for assessment. |
| Fail | 0-49 | Usually awarded to students whose performance is not considered to meet the minimum requirements set for particular tasks. The fail grade may be a result of insufficient preparation, of inattention to assignment guidelines or lack of academic ability. A frequent cause of failure is lack of attention to subject or assignment guidelines. |
Quality assurance
For the purposes of quality assurance, Bond University conducts an evaluation process to measure and document student assessment as evidence of the extent to which program and subject learning outcomes are achieved. Some examples of student work will be retained for potential research and quality auditing purposes only. Any student work used will be treated confidentially and no student grades will be affected.
Study Information
Submission procedures
Students must check the iLearn@Bond subject site for detailed assessment information and submission procedures.
Policy on late submission and extensions
A late penalty will be applied to all overdue assessment tasks unless an extension is granted by the subject coordinator. The standard penalty will be 10% of marks awarded to that assessment per day late with no assessment to be accepted seven days after the due date. Where a student is granted an extension, the penalty of 10% per day late starts from the new due date.
Academic Integrity
University’s Academic Integrity Policy defines plagiarism as the act of misrepresenting as one’s own original work: another’s ideas, interpretations, words, or creative works; and/or one’s own previous ideas, interpretations, words, or creative work without acknowledging that it was used previously (i.e., self-plagiarism). The University considers the act of plagiarising to be a breach of the Student Conduct Code and, therefore, subject to the Discipline Regulations which provide for a range of penalties including the reduction of marks or grades, fines and suspension from the University.
Bond University utilises Originality Reporting software to inform academic integrity.Feedback on assessment
Feedback on assessment will be provided to students within two weeks of the assessment submission due date, as per the Assessment Policy.
Accessibility and Inclusion Support
If you have a disability, illness, injury or health condition that impacts your capacity to complete studies, exams or assessment tasks, it is important you let us know your special requirements, early in the semester. Students will need to make an application for support and submit it with recent, comprehensive documentation at an appointment with a Disability Officer. Students with a disability are encouraged to contact the Disability Office at the earliest possible time, to meet staff and learn about the services available to meet your specific needs. Please note that late notification or failure to disclose your disability can be to your disadvantage as the University cannot guarantee support under such circumstances.
Additional subject information
As part of the requirements for Business School quality accreditation, the Bond Business School employs an evaluation process to measure and document student assessment as evidence of the extent to which program and subject learning outcomes are achieved. Some examples of student work will be retained for potential research and quality auditing purposes only. Any student work used will be treated confidentially and no student grades will be affected.
Subject curriculum
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Trading
An introduction to trading stocks on an organised exchange including different types of orders and the purpose and calculation of margin accounts.
SLOs included
- Demonstrate the ability to place orders in a virtual market to create a virtual portfolio.
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Return and Risk
Examines the theory and calculation of return and volatility for individual assets and for portfolios of assets, as well as a discussion of different averaging methods and when it is appropriate to use each method.
SLOs included
- Apply appropriate models of investment risk and return to a given investment.
- Apply strategies for assessing investment performance.
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Optimisation
Examines the origins and theory behind the procedures used by portfolio managers to determine the minimum variance set, the efficient frontier, the optimal risky portfolio and the optimal complete portfolio.
SLOs included
- Apply appropriate models of investment risk and return to a given investment.
- Apply strategies for assessing investment performance.
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Models of the Risk-return trade-off
Explores multiple models of return as a function of risk. These include the single index model, the Fama-French three-factor model, The Capital Asset Pricing Model (CAPM), and the underlying assumption of market efficiency. Includes discussion of behavioural biases and Prospect Theory.
SLOs included
- Apply appropriate models of investment risk and return to a given investment.
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Valuing financial assets
An overview and application of the generic procedure for pricing all financial assets, with specific application to valuing stocks, bonds and derivatives.
SLOs included
- Apply the concept of financial asset pricing to shares, interest rate securities and derivative securities.
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Interest rate portfolio management
Introduces the concept of duration and modified duration used to manage interest rate risk in fixed income portfolios. Includes a discussion of the yield curve.
SLOs included
- Apply appropriate models of investment risk and return to a given investment.
- Apply the concept of financial asset pricing to shares, interest rate securities and derivative securities.