1 x 3-hour workshop weekly
^ = may be enrolled concurrently
^ 1 of BUSN2007, BUSN2037
Enrolment not permitted
BUSN3016 has been successfully completed
Assumed knowledge
BUSN3031 Derivatives and Risk Management.
Topic description

This topic focusses on modern portfolio theory and investment analysis and management. It analyses the concepts of risk and return, the securities markets, securities analysis and portfolio management. The topic looks at the operations of Australian financial markets and the opportunities available to investors. A major focus in the topic is on share markets, although parts of the topic are devoted to bond and property investments. A simulated investment game running through the semester will comprise part of the assessment.

Educational aims

This topic aims to help students to understand both the theory and practice of investment management. Students will be introduced to the institutional background of investments, the valuation and analysis of individual securities, and the selection, management and performance evaluation of a portfolio of securities.

The topic will be applied to the Australian investment environment with frequent discussion of Australian institutions, instruments and markets. The impact of international market developments will also be highlighted and the role of international investments in a portfolio will be discussed. Students will be encouraged to apply the theory and concepts studied to current market developments.

Expected learning outcomes
On completion of this topic you will be expected to be able to:

  1. Discuss the structure of securities markets and ethical issues arising from participation in the securities industry
  2. Discuss the relative role of Australian markets in global financial markets
  3. Locate and utilise information available to participants in financial markets
  4. Describe the investment process
  5. Measure portfolio risk and return
  6. Apply the capital asset pricing model
  7. Discuss personal lifetime financial planning issues with the overall objectives of the clients, ethics and regulatory environment
  8. Discuss modern portfolio theory
  9. Recognise the benefits of diversification of assets held in a securities portfolio
  10. Analyse the impacts of the economy, developments in specific industries and decisions made by individual companies on the values of corporate shares
  11. Describe the features of fixed-interest securities, use techniques for valuing them and properly manage their portfolio
  12. Construct an optimal investment portfolio
  13. Explain portfolio management strategies and apply the principles of portfolio performance evaluation

Key dates and timetable

(1), (2)

Each class is numbered in brackets.
Where more than one class is offered, students normally attend only one.

Classes are held weekly unless otherwise indicated.


If you are enrolled for this topic, but all classes for one of the activities (eg tutorials) are full,
contact your College Office for assistance. Full classes frequently occur near the start of semester.

Students may still enrol in topics with full classes as more places will be made available as needed.

If this padlock appears next to an activity name (eg Lecture), then class registration is closed for this activity.

Class registration normally closes at the end of week 2 of each semester.

Classes in a stream are grouped so that the same students attend all classes in that stream.
Registration in the stream will result in registration in all classes.
  Unless otherwise advised, classes are not held during semester breaks or on public holidays.