Investment and Portfolio Management

Unit code: BAO3403 | Study level: Undergraduate
(One credit point is usually equivalent to one hour of study per week)
City Campus
Online Real Time
BAO1101 - Accounting for Decision Making
(Or equivalent to be determined by unit coordinator)


If you are studying this unit in 2023, check back for changes that have been made as result of student and other feedback.

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.

Learning Outcomes

On successful completion of this unit, students will be able to:

  1. Demonstrate an understanding of the theoretical aspects of financial markets and risks and returns of financial securities;
  2. 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;
  3. Critically review economic and financial theories and concepts through the examination of security valuation and portfolio construction;
  4. 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;
  5. Critique a range of portfolio evaluation approaches and techniques to evaluate professional portfolio managers’ performance;
  6. 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
  7. Elucidate independent expositions of knowledge and ideas to clearly, coherently and succinctly address complex and unpredictable problems.


For Melbourne campuses

Assessment type: Test
Grade: 10%
Multiple Choice Questions
Assessment type: Test
Grade: 30%
Short Answer Questions
Assessment type: Case Study
Grade: 30%
Case Study Analysis (Individual)
Assessment type: Assignment
Grade: 30%
Topic research (group)

Other locations

For students studying at Central University of Finance and Economics, Liaoning University, National School of Business Management, Colombo, Sunway College Johor Bahru, Sunway College Kuala Lumpur
Assessment type: Test
Grade: 20%
Theoretical and Practical Short Answer Questions and/or Multiple Choice Questions
Assessment type: Assignment
Grade: 30%
Case Study Analysis (Group Assignment)
Assessment type: Examination
Grade: 50%
Final Examination - 3 hour

Required reading

Essentials of Investments
Bodie, Z., Kane, A. & Marcus A.J. (2018).| Sydney: McGraw-Hill Education.

As part of a course

This unit is not a compulsorily taken as part of any specific course. Depending on the course you study, this unit may be taken as an elective.

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