General Information
In this subject, students explore the fundamentals of investment analysis, asset allocation, and portfolio management. The subject will also introduce various investment vehicles, including stocks, bonds, mutual funds, ETFs, and alternative investments to provide students with a solid understanding of the principles of investments and portfolio management. Theories underlying asset pricing models, efficient market hypotheses, behavioural finance, and modern portfolio theory are examined throughout the subject. Students will develop customized investment strategies that demonstrate innovative thinking in response to both investor mandates and evolving economic scenarios.
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Details
Academic unit: Bond Business School Subject code: FINC71-303 Subject title: Portfolio Analysis and Investments Subject level: Postgraduate Semester/Year: January 2025 Credit points: 10.000 -
Delivery & attendance
Timetable: https://bond.edu.au/timetable Delivery mode: Standard Workload items: - Personal Study Hours: x12 (Total hours: 72) - Recommended study time & reviewing materials
- Computer Lab: x12 (Total hours: 24) - Computer Lab 1
- Computer Lab: x12 (Total hours: 24) - Computer Lab 2
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. +++++ BBS uses a self and peer feedback system to support students engaged in assessments. Students are expected to provide this feedback in a timely fashion as part of their assessment. -
Resources
Prescribed resources: Books
- Frank K. Reilly,Keith C. Brown,Brindha Gunasingham,Asjeet Lamba,Dr Frank Elston (2019). Investment Analysis & Portfolio Management. n/a, Cengage AU 1062
iLearn@Bond & Email: iLearn@Bond is the Learning Management System at Bond University and is used to provide access to subject materials, class 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: | FINC71-303 |
| Subject title: | Portfolio Analysis and Investments |
| Subject level: | Postgraduate |
| Semester/Year: | January 2025 |
| Credit points: | 10.000 |
| Timetable: | https://bond.edu.au/timetable |
|---|---|
| Delivery mode: | Standard |
| Workload items: |
|
| 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. +++++ BBS uses a self and peer feedback system to support students engaged in assessments. Students are expected to provide this feedback in a timely fashion as part of their assessment. |
| Prescribed resources: | Books
|
|---|---|
| iLearn@Bond & Email: | iLearn@Bond is the Learning Management System at Bond University and is used to provide access to subject materials, class 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:
- Apply appropriate models of investment risk and return for common and advanced investment types.
- Use sophisticated models to apply the concept of pricing financial assets to equites and fixed income and evaluate fund performance.
- Analyse historical and current market trends to identify underexploited investment opportunities to develop creative portfolios that capitalize on these insights using common and advanced investments.
- Verbally present detailed portfolio information to a professional audience using appropriate and sophisticated visual aids with references to historical and current market trends.
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) Cumulative final examination of subject knowledge using applied question formats 30.00% Final Examination Period 1,2,3 Project Plan Prepare a written proposal for a new investment fund. 20.00% Week 7 1,2,3 Presentation Deliver a presentation that summarizes and evaluates the performance of your investment fund. 20.00% Week 12 2,3,4 Computer-aided Test (Open) Weekly practice opportunities to ensure students are keeping up with all the content and techniques in the subject 20.00% Weekly 1,2 Student Engagement Weekly preparation for and active participation in all class sessions allowing for formative feedback opportunities 10.00% Ongoing 1,2,3 - * 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) | Cumulative final examination of subject knowledge using applied question formats | 30.00% | Final Examination Period | 1,2,3 |
| Project Plan | Prepare a written proposal for a new investment fund. | 20.00% | Week 7 | 1,2,3 |
| Presentation | Deliver a presentation that summarizes and evaluates the performance of your investment fund. | 20.00% | Week 12 | 2,3,4 |
| Computer-aided Test (Open) | Weekly practice opportunities to ensure students are keeping up with all the content and techniques in the subject | 20.00% | Weekly | 1,2 |
| Student Engagement | Weekly preparation for and active participation in all class sessions allowing for formative feedback opportunities | 10.00% | Ongoing | 1,2,3 |
- * 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 the Lead Educator grants an extension. 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
Bond University‘s Student Code of Conduct Policy , Student Charter, Academic Integrity Policy and our Graduate Attributes guide expectations regarding student behaviour, their rights and responsibilities. Information on these topics can be found on our Academic Integrity webpage recognising that academic integrity involves demonstrating the principles of integrity (honesty, fairness, trust, professionalism, courage, responsibility, and respect) in words and actions across all aspects of academic endeavour.
Staff are required to report suspected misconduct. This includes all types of plagiarism, cheating, collusion, fabrication or falsification of data/content or other misconduct relating to assessment such as the falsification of medical certificates for assessment extensions. The longer term personal, social and financial consequences of misconduct can be severe, so please ask for help if you are unsure.
If your work is subject to an inquiry, you will be given an opportunity to respond and appropriate support will be provided. Academic work under inquiry will not be marked until the process has concluded. Penalties for misconduct include a warning, reduced grade, a requirement to repeat the assessment, suspension or expulsion from the University.
Feedback on assessment
Feedback on assessment will be provided to students according to the requirements of the Assessment Procedure Schedule A - Assessment Communication Procedure.
Whilst in most cases feedback should be provided within two weeks of the assessment submission due date, the Procedure should be checked if the assessment is linked to others or if the subject is a non-standard (e.g., intensive) subject.
Accessibility and Inclusion Support
Support is available to students where a physical, mental or neurological condition exists that would impact the student’s capacity to complete studies, exams or assessment tasks. For effective support, special requirement needs should be arranged with the University in advance of or at the start of each semester, or, for acute conditions, as soon as practicable after the condition arises. Reasonable adjustments are not guaranteed where applications are submitted late in the semester (for example, when lodged just prior to critical assessment and examination dates).
As outlined in the Accessibility and Inclusion Policy, to qualify for support, students must meet certain criteria. Students are also required to meet with the Accessibility and Inclusion Advisor who will ensure that reasonable adjustments are afforded to qualifying students.
For more information and to apply online, visit BondAbility.
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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Investment setting
This topic outlines what investments are and why we invest. Students learn how return and risk are measured and calculated, and the differences between expected and historical returns. Students understand that the concept of a required rate of return for an investment and what risk factors impact the required rate of return.
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Asset allocation decision
This topic outlines how to distribute an investor’s portfolio among different asset categories, such as stocks, bonds, and cash. Students learn that the goal is to maximize returns while minimizing risk based on the investor’s time frame, financial goals, and risk tolerance. Students understand that the asset allocation decision is a dynamic process that requires periodic review and adjustment to align with changing market conditions and personal circumstances.
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Markets & trading
This topic outlines the dynamics of financial markets, and the mechanisms of buying and selling securities, like stocks and bonds. Students learn about primary and secondary markets for trading financial securities. They understand the different trading services and practise using the order types offered by financial brokers and exchanges such as the New York Stock Exchange (NYSE) and the Australian Stock Exchange (ASX).
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Portfolio management
This topic outlines portfolio management and explains the use of the efficient frontier that involves creating investment portfolios that provide the highest expected return for a given level of risk. Students learn that the efficient frontier represents the optimal portfolios that maximize returns without increasing risk unnecessarily, based on Modern Portfolio Theory (MPT). Students understand that portfolio management is a strategic approach that emphasizes diversification and regular rebalancing to align with an investor’s goals and market conditions.
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Asset pricing models
This topic outlines that asset pricing models are financial tools used to determine the expected return of securities based on their risk. Students learn of models such as the Capital Asset Pricing Model (CAPM) and Arbitrage Pricing Theory (APT) that relate an asset’s risks to its expected return via a linear relationship. Students understand that these models are essential for investors to price risk and make informed decisions on the valuation of assets in financial markets.
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Portfolio performance
This topic outlines that evaluating investment portfolio performance is a critical process that involves analysing the returns generated by the portfolio against the level of risk taken to achieve those returns. Students learn about key performance metrics such as the Treynor, Sharpe, and Jensen ratios that provide a composite measure of risk-adjusted returns, helping investors to see the complete investment picture beyond mere returns. Students understand that it is essential to consider factors like risk assessment, return assessment, and benchmark comparison to ensure the investment strategy aligns with the investor’s objectives and risk tolerance.
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Security valuation
This topic outlines that security valuation as the process of determining the intrinsic value of a financial security, such as stocks or bonds, using various analytical methods and financial models. Students learn that this involves examining factors like the company’s financial health, market trends, and economic indicators to estimate the security’s true worth. Students understand that the goal of security valuation is to make informed investment decisions by comparing the market price of a security with its calculated intrinsic value to identify under- or over-valued assets.
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Equities
This topic outlines that equities, commonly known as stocks or shares, represent ownership interests in companies and are traded on stock markets, providing investors with potential capital gains and dividends. Students learn that the valuation of equities involves analysing a company’s financial statements, market conditions, and growth prospects to determine the stock’s fair market value. Students understand that investors in equities participate in the company’s success or failure, with the performance of their investments closely tied to the company’s profitability and economic factors influencing the stock market.
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Fixed Income
This topic outlines that fixed income refers to investments that provide a return in the form of fixed periodic payments and the eventual return of principal at maturity. Students learn that the valuation of fixed income securities, like bonds, involves understanding key features such as par value, coupon, and yield curves, and how these factors contribute to the security’s price and yield relationship. Students understand that risk management in fixed income investing is crucial, with strategies often focusing on duration, convexity, and credit spreads to manage and measure the sensitivity of bond prices to changes in interest rates.
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Market efficiency & behavioural finance
This topic outlines that efficient market hypotheses and behavioural finance are two contrasting perspectives on how financial markets operate and how investors make decisions. Efficient market theory posits that markets are rational and reflect all available information, making it impossible to consistently achieve returns above the market average. Behavioural finance, on the other hand, suggests that psychological factors and cognitive biases can lead to irrational financial decisions and market anomalies, challenging the notion of market efficiency. Students learn how to use these theories to support and explain different investment strategies according to investor preferences and beliefs.
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Alternative investments & thematic investing.
This topic outlines that alternative investments encompass a range of non-traditional assets (e.g. hedge funds, private equity, real estate, commodities) and thematic investments (e.g., exchange traded funds (ETFs), impact investing) which can diversify an investment portfolio beyond conventional investments and strategies. Students learn that these advanced investment strategies often exhibit different risk-return characteristics from traditional investments and may require more complex valuation methods. Students understand that advanced investment strategies are increasingly popular for their potential for providing unique opportunities for growth, offering a hedge against market volatility, and achieving an investor’s unique goals and preferences.