General Information
This subject explores the fundamentals of investment analysis, asset allocation, and portfolio management. Students will learn how to evaluate investment opportunities, construct and manage portfolios, and portfolio performances by assessing risk and return profiles. The subject will also introduce various investment vehicles, including stocks, bonds, mutual funds, and alternative investments, to provide students with a solid understanding of the principles of investments and portfolio management. Theories underlying asset pricing models, efficient markets, behavioural finance, and portfolio optimisation are examined in detail throughout the subject.
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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 2024 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
- Computer Lab: x12 (Total hours: 24) - Computer Lab 2
- 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
- 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 2024 |
| 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. |
| 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 to a given investment.
- Apply advanced models to apply the concept of pricing financial assets to equities and fixed income.
- Construct investment portfolios that reflect a sophisticated understanding of investor utility preferences and risk and return profiles of investment assets in the economic cycle.
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) Comprehensive assessment of all material. 30.00% Final Examination Period 1,2,3 Project Plan§ Prepare a report and deliver a pitch for an investment fund. 10.00% Week 4 3 Project Report§ Prepare a final report assessing the performance of your investment fund. 10.00% Week 12 1,2,3 Presentation§ Present your final report assessing the performance of your investment fund. 20.00% Week 12 2,3 Computer-aided Test (Open) Complete tests to assess knowledge of weekly topics taught in the subject material. 20.00% Ongoing 1,2,3 Student Engagement Preparation for and active participation in all class activities. 10.00% Ongoing 2,3 - § Indicates group/teamwork-based assessment
- * 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) | Comprehensive assessment of all material. | 30.00% | Final Examination Period | 1,2,3 |
| Project Plan§ | Prepare a report and deliver a pitch for an investment fund. | 10.00% | Week 4 | 3 |
| Project Report§ | Prepare a final report assessing the performance of your investment fund. | 10.00% | Week 12 | 1,2,3 |
| Presentation§ | Present your final report assessing the performance of your investment fund. | 20.00% | Week 12 | 2,3 |
| Computer-aided Test (Open) | Complete tests to assess knowledge of weekly topics taught in the subject material. | 20.00% | Ongoing | 1,2,3 |
| Student Engagement | Preparation for and active participation in all class activities. | 10.00% | Ongoing | 2,3 |
- § Indicates group/teamwork-based assessment
- * 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
A peer evaluation system will be used in this subject to help determine the individual marks for all group assessments. 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 is an investment the appropriate measures of return and risk. The determinants of required rates of return and relationship between risk and return is introduced.
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Asset allocation
This topic builds upon the previous topic to understand the individual investor life cycle. It explores the asset allocation and investment strategies that are appropriate for the investor’s risk and return preferences at different stages of life. This topic considers why an investment policy statement is needed, guidelines for crafting an investment policy statement with appropriate objectives and constraints.
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Markets & trading
This topic explores what a financial market is and the concept of primary capital and secondary financial markets. The trading services and the order types commonly available with most financial exchanges and brokers are introduced. Concepts like margin trading and short selling are discussed.
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Portfolio theory
This topic explores the efficient market hypotheses and behavioural finance and their implications for portfolio management. Students develop a greater understanding on risk aversion and alternative measures of risk such as correlation, variance and co-variance. Markowitz portfolio theory is explored by constructing the efficient frontier.
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Asset pricing models
This topic introduces the capital market theory and delves into the capital asset pricing model (CAPM) and its empirical tests. Student also learn about arbitrage pricing theory and multifactor models and risk estimation and their role in portfolio management.
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Security valuation
This topic provides an overview of the security valuation process starting off with a broader, macroeconomic view with country & industry analysis followed by a focus on a microeconomic view that is company specific. Valuation techniques such as cashflow valuations and relative valuation techniques are explored at a high level.
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Equities
This topic focuses on valuation techniques specific to equities such as macroanalysis and microvaluation of the share market and industry analyses. Company specific-analyses such as cash flow models (e.g., dividend discount model) relative valuation techniques (e.g., price/book, price/sales) will be applied to public-listed firms.
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Bonds
This topic focuses on the fundamentals of bond valuation and covering key inputs such as yields, term structure, duration, convexity for bond pricing. Different bond portfolio management strategies such as passive, active, matched-funding, contingent and structured management strategies will be discussed.
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Portfolio performance
This topic covers models used to evaluate risk-adjusted portfolio performance (e.g., Sharpe Ratio, Treynor Ratio, Jensen) and holdings-based performance measures (i.e., Grinblatt-Titman). Factor-based performance decomposition will be discussed.
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Alternative investments
This topic explores derivatives such as forwards, futures and options in broad detail. Concepts such as hedging are introduced. We introduce other more financial products such as cryptocurrencies, collateralised debt obligations, collateralised mortgage obligations.