Security Valuation and Portfolio Management

    Unit code: BAO7002 | Study level: Postgraduate
    (Generally, 1 credit = 10 hours of classes and independent study.)
    City Campus


    This unit develops knowledge in the field of Security Valuation and Portfolio Management both at individual and institutional levels. Students examine portfolio concepts as they relate to the construction of efficient portfolios of both risky and risk-free assets. Central to the unit is an understanding of the trade-off between risk and returns in the development of portfolios consisting both domestic and international financial assets. This unit will equip students to decide how much of an individual’s or an institution’s total wealth to hold in broad asset classes and to decide which securities within broad asset classes must be included in a portfolio.

    Learning Outcomes

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

    1. Critically review investment concepts, theories and analytical techniques employed in the process of managing institutional valuation of securities and investment portfolios;
    2. Justify creative, defensible and sustainable solutions in different institutional investment contexts;
    3. Exemplify the role of culture, values and dispositions in achieving consensual outcomes through consideration of procedures for managing investment portfolios in the context of globally integrated financial markets, particularly in respect to diversification, risk classes, currency issues and hedging techniques;
    4. Exemplify professional practice in funds design and decision-making; practical allocation of funds across asset classes and within different financial markets (industries); portfolio optimisation; portfolio monitoring; market sector volatilities and risk management and; measurement and evaluation of funds managers’ performance; and
    5. Exhibit high level personal autonomy and accountability within collaborative decision making activities in achieving ethical and socially responsible team outcomes.


    For Melbourne campuses

    Assessment type: Assignment
    Grade: 30%
    Group assignment on portfolio risk management strategies
    Assessment type: Project
    Grade: 40%
    Investment portfolio simulation project report
    Assessment type: Case Study
    Grade: 30%
    Case Studies on bond portfolio management and equity valuation

    Required reading

    Essentials of investments
    Bodie, Z., Kane, A., and Marcus, A.J. (2022).| McGraw-Hill Education.

    As part of a course

    This unit is studied as part of the following course(s):

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