BUSN3029 Investments and Portfolio Management

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.

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.

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