Course coordinator
Dr Elizabeth Zhu
Course overview
- Study period
- Semester 2, 2024 (22/07/2024 - 18/11/2024)
- Study level
- Postgraduate Coursework
- Location
- St Lucia
- Attendance mode
- In Person
- Units
- 2
- Administrative campus
- St Lucia
- Coordinating unit
- Business School
Provides students with techniques for evaluating investments on an individual basis and in the context of portfolios. Techniques for analysing investments focus on maximising expected returns while minimising risk. The most powerful way of achieving this objective is by creating a portfolio of investments.
Topics covered are financial statement analysis, equity investments, debt investments, portfolio management, and macroeconomic and industry analysis.
After completing the course, students should be able to construct and evaluate investment portfolios on theoretical and practical grounds. FINM7403 Portfolio Management is integrated with many of the other finance courses (FINM7401, FINM7402, FINM7406, ACCT7106, and FINM7405), providing shared coverage of the fundamentals of investment markets, portfolio theory (the quantitative trade-off of risk and return), bond & equity valuation, risk-factor pricing, macroeconomic analysis, financial statement analysis and the basic features of derivative investments. The course expands on many of these topics in managing a portfolio of assets. It introduces other concepts relevant to portfolio management, such as portfolio performance evaluation and the efficient markets debate.
The course content addresses key questions of interest to potential investors:
- What are investments?
- How can you calculate the fair price of bonds and stocks?
- How can investment outcomes be measured for individual assets and when these assets are combined?
- What features of global, country, and industry-level economies matter for investment outcomes?
- How can you measure and evaluate the historical performance of investments?
The course is supplemented with a brief exploration of the Efficient Market Hypothesis, behavioural finance, and investments in financial derivatives. Finally, case studies will be used to complete the learning of the code of ethics and standards of professional conduct.
Alongside their study of financial theories and accompanying practical examples in this course, students will be exposed to relevant published academic studies and international case studies reflecting real-world practice. They will also be provided opportunities to source and process real data in Excel and AI tools (such as ChatGPT) to enrich their understanding of portfolio management.
Course requirements
Assumed background
Before attempting this course, students are advised that it is important to complete the appropriate prerequisite course(s) listed on the front of this course profile. No responsibility will be accepted by the School of Business, the Faculty of Business, Economics and Law or The University of Queensland for poor student performance occurring in courses where the appropriate prerequisite(s) has/have not been completed, for any reason whatsoever.
Prerequisites
You'll need to complete the following courses before enrolling in this one:
FINM7065 or 7401 or 7805
Incompatible
You can't enrol in this course if you've already completed the following:
FINM2416 or 3402
Restrictions
Quota: Minimum of 15 enrolments
Course contact
Course staff
Timetable
The timetable for this course is available on the UQ Public Timetable.
Additional timetable information
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 aims to trainﾠstudents with techniques for evaluating investments on an individual basis and in the context of a portfolio. After completing the course, students should possess the theoretical and practical skills to value investments and construct investment portfolios.
Learning outcomes
After successfully completing this course you should be able to:
LO1.
Analyse and evaluate accounting, financial and non-financial information relevant to the task of asset allocation and security selection.
LO2.
Assess the value of a financial asset using a variety of accepted methods.
LO3.
Explain and evaluate the risks associated with investments on portfolio and security levels.
LO4.
Evaluate the performance of a portfolio and portfolio manager.
LO5.
Apply theory to the analysis of real world cases when working as part of a team, and employ databases and softwares commonly used in the industry.
Assessment
Assessment summary
| Category | Assessment task | Weight | Due date |
|---|---|---|---|
| Examination |
In-Semester Exam
|
30% |
17/09/2024 6:50 pm
During Lecture. |
| Paper/ Report/ Annotation, Project |
Team Assignment + Peer Review
|
25% |
14/10/2024 5:00 pm |
| Examination |
Final Exam
|
45% |
End of Semester Exam Period 2/11/2024 - 16/11/2024 |
Assessment details
In-Semester Exam
- Online
- Mode
- Written
- Category
- Examination
- Weight
- 30%
- Due date
17/09/2024 6:50 pm
During Lecture.
- Other conditions
- Time limited.
- Learning outcomes
- L01, L02, L03
Task description
The In-Semester exam is an open-book and online exam during class.
The exam consists of multiple choice and short answer questions. Solving some of these problems will involve calculation.
More details will be provided on the course Blackboard site.
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 | (online) Casio FX82 series or UQ approved calculator only |
| Open/closed book | Open Book examination |
| Materials | Excel |
| Exam platform | Learn.UQ |
| Invigilation | Not invigilated |
Submission guidelines
Deferral or extension
You may be able to defer this exam.
Late submission
Exams submitted after the end of the submission time will incur a late penalty.
Team Assignment + Peer Review
- Team or group-based
- Mode
- Product/ Artefact/ Multimedia, Written
- Category
- Paper/ Report/ Annotation, Project
- Weight
- 25%
- Due date
14/10/2024 5:00 pm
- Other conditions
- Peer assessed.
- Learning outcomes
- L01, L03, L05
Task description
The assignment consists of:
1. group project tasks that you are required to work in a team to complete all the project tasks in the assignment sheet (20 marks). The assignment task sheet will be available on Learn.UQ (Blackboard) from Teaching Week 2.
2. a peer assessment of each assignment group member's contributions (5 marks). A peer assessment is to be completed individually, for which you must rate the contribution of each member of your project team using the Peer Assessment tool on Blackboard.
NOTE:
Artificial Intelligence (AI) or Machine Translation (MT) uses: You may use AI in completing a specified part of this assignment. The use of AI must be acknowledged and referenced. Not referencing or acknowledging AI use may constitute student misconduct under the (PPL 3.60.01) Student Code of Conduct. While for other parts of the assignment, the use of AI is prohibited. Machine Translation is prohibited in all parts of the assignment.
Detailed guidelines for this assignment are provided on our course BB site. You should aim to complete this assignment progressively throughout the semester, and you will be guided each week as to what parts of your analysis you are adequately equipped to undertake. Leaving this assignment until the final week before it's due won't provide you with enough time to communicate effectively between your team members to complete this task.
WORD LIMIT: 2,500 words.
Submission guidelines
The project must be submitted for grading via the Blackboard Assignment submission link. It is also required that students submit the project to Turnitin for an integrity check.
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
2/11/2024 - 16/11/2024
- Other conditions
- Time limited.
- Learning outcomes
- L01, L02, L03, L04, L05
Task description
The final assessment consists of
- Short-answer questions,
- Essay questions.
Further details will be discussed in class.
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 or UQ approved , labelled calculator only |
| 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
Find the required and recommended resources for this course on the UQ Library website.
Additional learning resources information
Case studies will be used in some lectures and students will find case readings on Learn.UQ (Blackboard) in due course.
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 |
Lecture 1: The Investment Environment This topic develops understanding of risk and return, investor's preferences, and capital allocation to risky assets. Learning outcomes: L02, L05 |
Week 2 |
Tutorial |
Tutorial 1: The Investment Environment Learning outcomes: L02, L05 |
Lecture |
Lecture 2: Equity Valuation I This topic develops the well-known Capital Asset Pricing Model and discuss its empirical challenges in explaining asset returns. Learning outcomes: L01, L02, L05 |
|
Week 3 |
Tutorial |
Tutorial 2: Equity Valuation I Learning outcomes: L01, L02, L05 |
Lecture |
Lecture 3: Equity Valuation II This topic discusses macroeconomic and industry analysis which is particularly useful in timing factor investments. It introduces a wide range of multi-factor asset pricing models to address the empirical challenges of the CAPM. Learning outcomes: L01, L02, L03, L05 |
|
Week 4 |
Tutorial |
Tutorial 3: Equity Valuation II Royal Queensland Show Public Holiday - Wednesday 14 Aug 2024 - Check Blackboard for announcements about affected classes. Learning outcomes: L01, L02, L03, L05 |
Lecture |
Lecture 4: Equity Valuation III This topic covers the basics of bond valuation. Learning outcomes: L01, L03, L05 |
|
Week 5 |
Tutorial |
Tutorial 4: Equity Valuation III Learning outcomes: L01, L03, L05 |
Lecture |
Lecture 5: Bond Valuation I This topic focuses on term structure of interest rates, management of bond portfolios, and bond risk factors. Learning outcomes: L01, L03, L05 |
|
Week 6 |
Tutorial |
Tutorial 5: Bond Valuation I Learning outcomes: L01, L03, L05 |
Lecture |
Lecture 6: Bond Valuation II This topic focuses on ratio analysis and equity valuation models Learning outcomes: L01, L03, L05 |
|
Week 7 |
Tutorial |
Tutorial 6: Bond Valuation II No Tutorial due to In-Semester Exam Learning outcomes: L01, L03, L05 |
Lecture |
Lecture 7: Portfolio Theory I In-Semester Exam During Lecture Learning outcomes: L01, L02, L03 |
|
Week 8 |
Tutorial |
Tutorial 7: Portfolio Theory I Learning outcomes: L01, L02, L05 |
Lecture |
Lecture 8: Portfolio Theory II The lecture discusses the discounted cash flow models and the multiples method in valuing equity securities. Learning outcomes: L01, L02, L03, L05 |
|
Week 9 |
Tutorial |
No tutorial this week |
Lecture |
In-Semester Exam This topic discusses various methods to evaluate and understand investment fund performance/styles. Learning outcomes: L01, L02, L03, L05 |
|
Mid Sem break |
No student involvement (Breaks, information) |
In-Semester Break |
Week 10 |
Tutorial |
Tutorial 8: Portfolio Theory II Learning outcomes: L01, L02, L03, L05 |
Lecture |
Lecture 9: Portfolio Performance Evaluation This topic discusses the notion of market efficiency and behavioural finance with applications on security returns. Learning outcomes: L03, L04, L05 |
|
Week 11 |
Tutorial |
Tutorial 9: Portfolio Performance Evaluation Learning outcomes: L03, L04, L05 |
Lecture |
Lecture 10: Options Markets This lecture discusses basics of options contracts and risk management strategies for portfolio investments. Learning outcomes: L01, L02, L03, L05 |
|
Week 12 |
Tutorial |
Tutorial 10: Options Markets Learning outcomes: L01, L02, L03, L05 |
Lecture |
Lecture 11: EMH & Behavioural Finance This lecture demonstrates the investment process in practice with CFA framework Learning outcomes: L03, L04, L05 |
|
Week 13 |
Tutorial |
Tutorial 11: EMH & Behavioural Finance Learning outcomes: L03, L04, L05 |
Lecture |
Lecture 12: Investment Process and Ethics Learning outcomes: 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 - Students Policy and Procedure
Learn more about UQ policies on my.UQ and the Policy and Procedure Library.