BUSN9223 Investments and Portfolio Management

2012

4.5

1 x 3-hour workshop weekly

1 Admission into MAF-Master of Accounting and Finance
1a Admission into MACC-Master of Accounting
1b Admission into MAFFP-Master of Accounting and Finance - City Campus
1c Admission into MACCFP-Master of Accounting - City Campus
Must Satisfy: ((1 or 1a or 1b or 1c))

BUSN9213 has been successfully completed

It is recommended that students have completed the following topics (or equivalent): BUSN9237 (BUSN9212) Financial Markets and Institutions, and BUSN9227 (BUSN9202) Financial Management

Core topic Master of Business Administration (Finance Specialisation)

An introductory course on modern portfolio theory and investment analysis and management. It analyses the concepts of risk and return, the securities markets, securities analysis and portfolio management. The topic looks at the operations of Australian financial markets and the opportunities available to investors. A major focus in the topic is share markets, although parts of the topic are devoted to bond and property investments. A simulated investment game running through the semester will comprise part of the assessment.

This topic is designed to help students to understand both the theory and practice of investment management. Students will be introduced to the institutional background to investments, the valuation and analysis of individual securities, and the selection, management and performance evaluation of a portfolio of securities.

The topic will be applied to the Australian investment environment with frequent discussion of Australian institutions, instruments and markets. The impact of international market developments will also be highlighted and the role of international investments in a portfolio will be discussed. Students will be encouraged to apply the theory and concepts studied to current market developments.

Upon successfully completing the topic, students should be able to:

• discuss the structure of securities markets
• assess ethical issues arising from participation in the securities industry
• discuss the relative role of Australian markets in global financial markets
• locate and utilise information available to participants in financial markets
• apply the important relationship between risk and return
• appreciate the benefits of diversification of assets held in a security portfolio
• discuss alternative models for valuing shares
• analyse the impact of the economy, developments in specific industries and decisions made by individual companies on the values of corporate shares
• discuss the features of fixed-interest securities and use techniques for valuing them
• discuss the characteristics and valuation of various property investments
• assess asset allocation strategies
• discuss portfolio management strategies
• discuss the use of derivative securities in managing investment portfolios
• apply the principles of portfolio performance evaluation
• discuss personal lifetime financial planning issues