Dr Elizabeth Zhu
Course overview
- Study period
- Semester 2, 2025 (28/07/2025 - 22/11/2025)
- 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
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 staff
Course coordinator
Lecturer
Dr Elizabeth Zhu
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 that 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 software commonly used in the industry.
LO6.
Identify ethical dilemmas in various investment scenarios and explain the potential conflicts of interest that may arise in the investment industry.
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 |
Team Assignment + Peer Review
|
25% |
20/10/2025 4:00 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
- Written
- Category
- Examination
- Weight
- 30%
- Due date
In-semester Saturday
6/09/2025 - 20/09/2025
- Other conditions
- Time limited.
- Learning outcomes
- L01, L02, L03
Task description
The In-Semester exam is an in-person Saturday exam.
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. Generative Artificial Intelligence (AI) or Machine Translation (MT) tools will not be permitted. Any attempted use of AI or MT 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 |
| Materials | Pen, pencil, eraser |
| Exam platform | Paper based |
| Invigilation | Invigilated in person |
Submission guidelines
Deferral or extension
You may be able to defer this exam.
Saturday Deferred Exam Date - TBA
Team Assignment + Peer Review
- Team or group-based
- Mode
- Product/ Artefact/ Multimedia, Written
- Category
- Computer Code, Paper/ Report/ Annotation, Project
- Weight
- 25%
- Due date
20/10/2025 4:00 pm
- Other conditions
- Peer assessed.
- Learning outcomes
- L01, L03, L04, 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. See detailed instructions 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.
- Learning outcomes
- L01, L02, L03, L04, L05, L06
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 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
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) as classes progress.
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 |
|---|---|---|
Not scheduled |
Lecture |
Self-study for the In-Semester Exam--no lecture this week This week is designated for self-study in preparation for the in-semester exam. Tutorials will still run, but there will be no lectures. However, the lecture schedule may be adjusted depending on the finalised Saturday in-semester exam timetable. Learning outcomes: L01, L02, L03 |
Week 1 |
Lecture |
Lecture 1: The investment environment This topic introduces the concepts of investments, focusing on the motives why people and institutions invest, and the environment in which these investment decisions take place. The topic concludes with a case study to help students understand the mechanics and implications of short-selling. Learning outcomes: L01, L02, L03, L05 |
Week 2 |
Tutorial |
Tutorial 1: The investment environment Learning outcomes: L01, L02, L03, L05 |
Lecture |
Lecture 2: Equity valuation I This topic introduces financial statement analysis, helping students understand key financial reports like the balance sheet, income statement, and cash flow statement. It also uses real-world examples to show how to perform ratio analysis to assess a company’s performance. Learning outcomes: L01, L03, L05 |
|
Week 3 |
Tutorial |
Tutorial 2: Equity valuation I Learning outcomes: L01, L02, L05 |
Lecture |
Lecture 3: Equity valuation II This topic reviews fundamental valuation techniques, focusing on Discounted Cash Flow (DCF) models. It then explains how multiple-based valuation models are used in practice. The topic concludes with a case study, allowing students to apply both valuation approaches to a real-world example. EKKA Public Holiday - Wednesday 13 August 2025 - Check Blackboard for announcements about affected classes. Learning outcomes: L01, L03, L05 |
|
Week 4 |
Tutorial |
Tutorial 3: Equity valuation II Learning outcomes: L01, L03, L05 |
Lecture |
Lecture 4: Macroeconomic and industry analysis This topic helps students understand the environment in which a firm operates by examining it at three levels: the macroeconomic context, the industry landscape, and the firm-specific environment. Learning outcomes: L02, L03, L05 |
|
Week 5 |
Tutorial |
Tutorial 4: Macroeconomic and industry analysis Learning outcomes: L02, L03, L05 |
Lecture |
Lecture 5: Bond valuation I This topic reviews the fundamentals of bond valuation and helps students understand the concept of credit risk and how it is measured. The topic concludes with a case study that applies bond pricing techniques to real-world problems. 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 introduces the main theories of the term structure of interest rates, followed by a discussion of duration as a key measure of bond risk. It also covers strategies for managing a bond portfolio. Learning outcomes: L01, L02, L05 |
|
Week 7 |
Tutorial |
Tutorial 6: Bond valuation II This week is designated for self-study in preparation for the in-semester exam. Tutorials will still run, but there will be no lectures. However, the lecture schedule may be adjusted depending on the finalised Saturday in-semester exam timetable. Learning outcomes: L01, L03, L05 |
Week 8 |
Lecture |
Lecture 7: Portfolio theory I This topic reviews the trade-off between risk and return. We start by learning how to calculate the expected return and risk of a two-asset portfolio, then move to a three-asset portfolio, and finally to a portfolio with many assets using the Mean-Variance approach. The topic ends with a case study to apply what has been learned. Learning outcomes: L01, L02, L05 |
Tutorial |
No tutorial this week due to the In-semester Exam There is no tutorial this week due to the in-semester exam, assuming the exam was held last Saturday. Tutorials will resume next week. Learning outcomes: L01, L02, L03, L05 |
|
Week 9 |
Tutorial |
Tutorial 7: Portfolio theory I Learning outcomes: L01, L02, L03, L05 |
Lecture |
Lecture 8: Portfolio theory II This topic introduces utility functions, optimal portfolios, the derivation of CAPM and the Security Market Line (SML), the structure of multi-factor models, and the evidence from asset pricing model tests. Learning outcomes: L03, L04 |
|
Mid Sem break |
No student involvement (Breaks, information) |
In-Semester Break |
Week 10 |
Tutorial |
Lecture 9: Performance evaluation This topic discusses how to evaluate the performance of managed funds. It introduces the concept of style analysis and explores methods of performance attribution. Kings Birthday Public Holiday - Monday 6 October 2025 - Check Blackboard for announcements about affected classes. Learning outcomes: L04, L05 |
Tutorial |
Tutorial 8: Porfolio theory II Learning outcomes: L03, L04, L05 |
|
Week 11 |
Lecture |
Lecture 10: Options markets This topic introduces the concepts of options, covers option valuation using the Black-Scholes-Merton model, and examines common options trading strategies. Learning outcomes: L03, L04, L05 |
Tutorial |
Tutorial 9: Performance evaluation Learning outcomes: L01, L02, L03, L05 |
|
Week 12 |
Lecture |
Lecture 11: Efficient markets and behavioral finance This topic covers the Efficient Market Hypothesis that prices reflect all available information. The topic also introduces how investor behavior can cause prices to deviate from model predictions. Learning outcomes: L01, L02, L03, L05 |
Tutorial |
Tutorial 10: Options markets Learning outcomes: L03, L04, L05 |
|
Week 13 |
Lecture |
Lecture 12: Investment process and ethics, course review This lecture demonstrates the investment process in practice with the CFA framework and provides a course review. Learning outcomes: L03, L04, L05, L06 |
Tutorial |
Tutorial 11: Efficient markets and behaviornal finance 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 for Students Policy and Procedure
Learn more about UQ policies on my.UQ and the Policy and Procedure Library.