Course coordinator
Ms Zoe Zhao
Course overview
- Study period
- Semester 2, 2025 (28/07/2025 - 22/11/2025)
- Study level
- Undergraduate
- Location
- St Lucia
- Attendance mode
- In Person
- Units
- 2
- Administrative campus
- St Lucia
- Coordinating unit
- Business School
This course provides students with techniques for evaluating investments on an individual basis and in the context of portfolio theory and asset pricing. Techniques for analysing investments focus on maximising expected returns while minimising risk are covered. Fixed income security analysis and fund performance are detailed.
This course covers the two main types of investmentsﾠ- equity and debt investments - along with two weeks on alternative investments and a week on ethics and standards . Our objective is to develop skills in pricing financial assets and forming portfolios which maximise expected return for a given level of risk.
The way this course is integrated with other finance courses is as follows. Note that these are not necessarily the only topics covered in the other courses. The table below illustrates this integration.
FINM2415 Corporate Finance considers the financial decisions managers undertake in order to minimise their weighted average cost of capital, the components of which are the cost of debt and equity capital. We also need to estimate the cost of debt and equity capital in order to value investments and construct portfolios.
FINM3403 International Financial Management considers the international exposure of investments by discussing exchange rate risk, foreign currency derivatives, political risk and international taxation.
FINM3404 Banking and Lending Decisions considers credit risk in various lending situations and the information content of financial statements in assessing this risk.
FINM3405 Derivatives and Risk Management discusses the use of derivatives as a risk management technique. Derivatives allow portfolio managers to structure portfolios to achieve a specified level of risk and expected return.
FINM2416 topics
Relationship to other courses
Securities markets
FINM2415 Corporate Finance: Raising equity capital in initial public offers and secondary equity offers
Equity investment
FINM2415 Corporate Finance: Valuation of initial public offers and acquisitions using discounted cash flow techniques
Debt investments
FINM3404 Banking and Lending Decisions: Credit risk measured using financial ratios
Portfolio management
FINM2415 Corporate Finance: Cost of equity capital estimation using the Capital Asset Pricing Model
FINM3403 International Financial Management: Extension to maximising the reward-for-risk trade-off in an international equities portfolio
FINM3405 Derivatives and Risk Management: Extension to portfolio management to incorporate derivatives to manage risk exposure. ﾠ
Course requirements
Prerequisites
You'll need to complete the following courses before enrolling in this one:
FINM1415 or 2401 or 2411 or 2412
Incompatible
You can't enrol in this course if you've already completed the following:
FINM3402 or 3412 or 7403
Restrictions
Not to be studied by BAdvFinEcon(Hons) students
Course contact
Course staff
Lecturer
Ms Zoe Zhao
Timetable
The timetable for this course is available on the UQ Public Timetable.
Additional timetable information
The course will consist of one lecture (2 hours) and one tutorial (2 hours) per week. Students are requested to sign on for a lecture session and tutorial session via "My Timetable".
Please note: Teaching staff do not have access to the timetabling system to help with class allocation. Therefore, should you need help with your timetable and/or allocation of classes, please ensure you email business.mytimetable@uq.edu.au from your UQ student email account with the following details:
- Full name
- Student ID
- Course Code
Aims and outcomes
This course provides students with techniques for pricing financial investments on an individual basis and evaluating in the context of a portfolio. Techniques for analysing portfolio investments focus on maximising expected returns while minimising risk. Therefore, students should achieve the ability to value investments and quantify the contribution they make to the risk of a portfolio. Students will also learn the role of ethics and professional standards within the investment management process.
Learning outcomes
After successfully completing this course you should be able to:
LO1.
Understand factors that impact financial markets.
LO2.
Analyse financial data in order to assess a particular investment or investment strategy.
LO3.
Perform and evaluate different techniques to value equity, debt, and alternative investments.
LO4.
Explain and evaluate the risks associated with investing, including understanding ethical and professional standards in an investment management context.
LO5.
Analyse techniques for portfolio creation and to measure portfolio performance.
Assessment
Assessment summary
| Category | Assessment task | Weight | Due date |
|---|---|---|---|
| Examination |
In-Semester Exam
|
30% |
In-semester Saturday 6/09/2025 - 20/09/2025 |
| Computer Code, Paper/ Report/ Annotation, Project | Free Cash Flow Valuation of a Company | 25% |
24/09/2025 1:00 pm |
| Examination |
Final Exam
|
45% |
End of Semester Exam Period 8/11/2025 - 22/11/2025 |
Assessment details
In-Semester Exam
- Identity Verified
- In-person
- Mode
- Activity/ Performance
- Category
- Examination
- Weight
- 30%
- Due date
In-semester Saturday
6/09/2025 - 20/09/2025
- Other conditions
- Time limited, Secure.
- Learning outcomes
- L01, L02, L03
Task description
- More details about the exam will be posted to our course BB site.
- The in-semester exam date will be advised as soon as we are made aware by the university.
AI Statement:
This assessment task is to be completed in-person. The use of generative Artificial Intelligence (AI) tools will not be permitted. Any attempted use of Generative AI may constitute student misconduct under the Student Code of Conduct
Exam details
| Planning time | 10 minutes |
|---|---|
| Duration | 90 minutes |
| Calculator options | (In person) Casio FX82 series only or UQ approved and labelled calculator |
| Open/closed book | Closed book examination - no written materials permitted |
| Exam platform | Paper based |
| Invigilation | Invigilated in person |
Submission guidelines
Deferral or extension
You may be able to defer this exam.
Free Cash Flow Valuation of a Company
- Mode
- Written
- Category
- Computer Code, Paper/ Report/ Annotation, Project
- Weight
- 25%
- Due date
24/09/2025 1:00 pm
- Learning outcomes
- L01, L02, L03
Task description
You will be required to produce a report based on valuation of a company from the standpoint of a financial analyst. Overall you will provide an evaluation of the investment potential of the company's shares. In answering this
- An introduction and conclusion (with investment suggestions) is necessary.
- Your report is to be no more than 1200 words and typed in 12pt Times New Roman with 1.5 line spacing and normal margin.
- Your report should include assumptions, valuation, sensitivity analysis and investment suggestions.
AI Statement:
This task has been designed to be challenging, authentic and complex. Whilst students may use AI technologies, successful completion of assessment in this course will require students to critically engage in specific contexts and tasks for which artificial intelligence will provide only limited support and guidance.
A failure to reference generative AI use may constitute student misconduct under the Student Code of Conduct.
To pass this assessment, students will be required to demonstrate detailed comprehension of their written submission independent of AI tools.
Submission guidelines
The assignment must be submitted to both Turnitin AND Blackboard submission links. For more details, refers to the "Assessment Guidelines" on Blackboard.
Deferral or extension
You may be able to apply for an extension.
Late submission
A penalty of 10% of the maximum possible mark will be deducted per 24 hours from time submission is due for up to 7 days. After 7 days, you will receive a mark of 0.
Final Exam
- Identity Verified
- In-person
- Mode
- Written
- Category
- Examination
- Weight
- 45%
- Due date
End of Semester Exam Period
8/11/2025 - 22/11/2025
- Other conditions
- Time limited, Secure.
- Learning outcomes
- L01, L02, L03, L04, L05
Task description
- The course is integrative and thus all components of the course are subject to examination and should be understood to perform well.
- The final exam will consist of problem-solving and short-answer questions.
- If you are unable to sit your final exam, you must apply for a deferred exam.
AI Statement:
This assessment task is to be completed in-person. The use of generative Artificial Intelligence (AI) tools will not be permitted. Any attempted use of Generative AI may constitute student misconduct under the Student Code of Conduct.
Exam details
| Planning time | 10 minutes |
|---|---|
| Duration | 120 minutes |
| Calculator options | (In person) Casio FX82 series only or UQ approved and labelled calculator |
| Open/closed book | Closed book examination - no written materials permitted |
| Exam platform | Paper based |
| Invigilation | Invigilated in person |
Submission guidelines
Deferral or extension
You may be able to defer this exam.
Course grading
Full criteria for each grade is available in the Assessment Procedure.
| Grade | Cut off Percent | Description |
|---|---|---|
| 1 (Low Fail) | 0 - 29 |
Absence of evidence of achievement of course learning outcomes. |
| 2 (Fail) | 30 - 46 |
Minimal evidence of achievement of course learning outcomes. |
| 3 (Marginal Fail) | 47 - 49 |
Demonstrated evidence of developing achievement of course learning outcomes |
| 4 (Pass) | 50 - 64 |
Demonstrated evidence of functional achievement of course learning outcomes. |
| 5 (Credit) | 65 - 74 |
Demonstrated evidence of proficient achievement of course learning outcomes. |
| 6 (Distinction) | 75 - 84 |
Demonstrated evidence of advanced achievement of course learning outcomes. |
| 7 (High Distinction) | 85 - 100 |
Demonstrated evidence of exceptional achievement of course learning outcomes. |
Additional course grading information
Grades will be allocated according to University-wide standards of criterion-based assessment.
Supplementary assessment
Supplementary assessment is available for this course.
Learning resources
You'll need the following resources to successfully complete the course. We've indicated below if you need a personal copy of the reading materials or your own item.
Library resources
Library resources are available on the UQ Library website.
Learning activities
The learning activities for this course are outlined below. Learn more about the learning outcomes that apply to this course.
Filter activity type by
Please select
| Learning period | Activity type | Topic |
|---|---|---|
Week 1 |
Lecture |
Behavioral Finance Efficient Market Hypothesis, Behavioral Biases, and Technical Analysis Learning outcomes: L01, L02 |
Week 2 |
Tutorial |
Tutorial 1: Behavioral Finance Learning outcomes: L01, L02 |
Lecture |
Financial Statement Analysis Financial statement and ratio analysis Learning outcomes: L02 |
|
Week 3 |
Tutorial |
Tutorial 2: Financial Statement Analysis Royal Queensland Show Public Holiday - Wednesday 13 Aug 2025 - Check Blackboard for announcements about affected classes. Learning outcomes: L02 |
Lecture |
Stock Valuation 1 Review and extension on dividend discount models, growth assumptions, and present value of growth opportunities (PVGO) Royal Queensland Show Public Holiday - Wednesday 13 Aug 2025 - Check Blackboard for announcements about affected classes. Learning outcomes: L03 |
|
Week 4 |
Tutorial |
Tutorial 3: Stock Valuation 1 Learning outcomes: L03 |
Lecture |
Stock Valuation 2 Free cash flow, residual income, and Multiples-based valuation models Learning outcomes: L03 |
|
Week 5 |
Tutorial |
Tutorial 4: Stock Valuation 2 Learning outcomes: L03 |
Lecture |
Macro and Industry analysis Other forms of fundamental analysis, including the global economy, the domestic macroeconomy, demand and supply shocks, federal government policy, business cycles, and industry analysis. Learning outcomes: L01, L02 |
|
Week 6 |
Tutorial |
Tutorial 5: Macro and Industry analysis Learning outcomes: L01, L02 |
Lecture |
Fixed Income Securities Bond prices and term structure, ESG considerations in fixed income Learning outcomes: L03 |
|
Week 7 |
Tutorial |
Tutorial 6: Fixed Income Securities Learning outcomes: L03 |
Lecture |
Bond Portfolios Interest rate risk - duration and convexity, credit risk, asset and liability management, ESG investing Learning outcomes: L03 |
|
Week 8 |
Tutorial |
Tutorial 7: Bond Portfolios Learning outcomes: L03 |
Lecture |
Portfolio Theory 1 Risk, return, and the historical record; capital allocation to risky assets; and optimal risky portfolios Learning outcomes: L02, L04, L05 |
|
Week 9 |
Tutorial |
Tutorial 8: Portfolio Theory 1 Learning outcomes: L02, L04, L05 |
Lecture |
Portfolio Theory 2 Various types of pricing models, including the Capital Asset Pricing Model (CAPM), Arbirage Pricing Theory (APT), and multifactor models of risks and returns. Learning outcomes: L04, L05 |
|
Mid Sem break |
No student involvement (Breaks, information) |
In-Semester Break |
Week 10 |
Tutorial |
Tutorial 9: Portfolio Theory 2 King's Birthday Public Holiday - Monday 6 Oct 2025 - Check Blackboard for announcements about affected classes. Learning outcomes: L04, L05 |
Lecture |
Portfolio Theory 3 Portfolio performance evaluation, including the conventional theory of performance evaluation, style analysis, and performance attribution procedures. King's Birthday Public Holiday - Monday 6 Oct 2025 - Check Blackboard for announcements about affected classes. Learning outcomes: L03, L04, L05 |
|
Week 11 |
Tutorial |
Tutorial 10: Portfolio Theory 3 Learning outcomes: L03, L04, L05 |
Lecture |
Alternative Investments 1 Introducing derivative securities and their pricing Learning outcomes: L02, L03, L04 |
|
Week 12 |
Tutorial |
Tutorial 11: Alternative Investments 1 Learning outcomes: L02, L03, L04 |
Lecture |
Alternative Investments 2 Trading strategies involving options and pricing forwards and futures Learning outcomes: L02, L03, L04 |
|
Week 13 |
Tutorial |
Tutorial 12: Alternative Investments 2 Learning outcomes: L02, L03, L04 |
Lecture |
Ethics and Professional Standards in the Investment Industry and Review Materials Code of ethics, standards of professional conduct, ethical framework, guidance and application of the code and standards, presentation of performance results for the Global Investment Performance Standards and review of all materials. Learning outcomes: L01, L02, L03, L04, L05 |
Policies and procedures
University policies and procedures apply to all aspects of student life. As a UQ student, you must comply with University-wide and program-specific requirements, including the:
- Student Code of Conduct Policy
- Student Integrity and Misconduct Policy and Procedure
- Assessment Procedure
- Examinations Procedure
- Reasonable Adjustments for Students Policy and Procedure
Learn more about UQ policies on my.UQ and the Policy and Procedure Library.