This unit addresses problems and challenges that the international financial environment presents to modern day investment analysts and fund Managers. It interrogates investment analysis and portfolio management while addressing asset allocation decisions, securities markets organization, functioning and Indexes. Students will apply theories in economics and finance namely Efficient Market Hypothesis (EMH), modern portfolio theory, Capital Asset Pricing Model (CAPM) and multifactor models to analyse asset pricing, equity, bond, and derivatives valuation and managing securities portfolio and evaluation of portfolio performance.

Unit details

Location:
Study level:
Undergraduate
Credit points:
12
Unit code:
BAO3403

Prerequisites

BAO1101 - Accounting for Decision Making

Learning Outcomes

On successful completion of this unit, students will be able to:
  1. Analyse a range of pricing models including Capital Asset Pricing Model (CAPM) and multifactor models with reference to both conceptual and practical implications arising in investment settings, asset allocation decision-making, the functioning of securities markets, indexes, and achieving capital market efficiency;  
  2. Critically review economic and financial theories and concepts through the examination of security valuation and portfolio construction;  
  3. Derive, evaluate and apply technical knowledge to achieve ethical and professional outcomes relevant to the distinctive nature of derivative securities in a variety of local and global contexts;  
  4. Critique a range of portfolio evaluation approaches and techniques to evaluate professional portfolio managers' performance;  
  5. Exhibit effective interpersonal skills to collaborate with and influence team members, respecting the diversity of team contributions and commitment to achieving team outcomes whilst assuming responsibility and accountability for their own learning and professional practice; and  
  6. Elucidate independent expositions of knowledge and ideas to clearly, coherently and succinctly address complex and unpredictable problems.  

Assessment

Assessment type Description Grade
Test Theoretical and Practical Short Answer Questions and/or Multiple Choice Questions 20%
Assignment Case Study Analysis (Group Assignment) 20%
Examination Final Examination - 3 hour 60%

Required reading

Principles of Investments, 1st Edition,
Bodie, Z., Drew, M.E., Basu, A., Kane, A. & Marcus A.J., 2013,
Sydney: McGraw-Hill Education.

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