Security Valuation and Portfolio Management

Unit code: BAO7002 | Study level: Postgraduate
Credit points
12
(Generally, 1 credit = 10 hours of classes and independent study.)
Location
City Campus
Prerequisites
N/A
Overview
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Overview

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.

Assessment

For Melbourne campuses

Assessment type: Project
|
Grade: 30%
Investment portfolio simulation project report (Part 1:10%, Part 2: 20%) (Individual)
Assessment type: Case Study
|
Grade: 30%
Case Studies on bond portfolio management and equity valuation (Individual)
Assessment type: Assignment
|
Grade: 40%
Assignment on portfolio risk management strategies (Group)

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 not compulsory for any specific course. Depending on the course you study, this unit may be taken as an elective.

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