Units

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Sample subject outline - Semester 1 2013

Note: Subject outlines often change before the semester begins. Below is a sample outline.

Rationale

People study security analysis and portfolio management or 'investments' for at least two reasons. Firstly, a thorough knowledge of the investment process can greatly enhance a person's welfare. In recent years, the growth of interest in security analysis and portfolio management has been accredited to greater public awareness of the financial market as an investment opportunity. The public at large has taken to purchasing stocks and bonds as a means of securing higher returns, necessitating a greater degree of consumer awareness towards financial matters.

Secondly, knowledge of investments can lead to a rewarding career. Perhaps in no other area in business education have the theories and techniques found in security analysis and investment management had such a profound effect on professional behaviour and practice in the real world. Modern finance theory is widely employed in the investment community by security analysts and investment managers who are becoming increasingly sophisticated, and a deep understanding of the principles entailed can mean the difference between the success and failure of any type of investment portfolio. Funds managers must understand the needs of the clients, design portfolio's consisting of different assets to suit those needs, and ensure the returns from the funds and the associated risk are as per expectations. Combined with your other studies, this unit will provide the basis for you to enter this growing and complex market, with the necessary skills and knowledge to advance rapidly within the industry.

Aims

The aim of this unit is to provide students with a solid grounding on investment management by developing sound knowledge and understanding of theoretical, empirical, and practice related issues in the field.

Objectives

Course Learning Goals (Postgraduate)

The QUT Business School has established the Assurance of Learning (AOL) Goals to meet contemporary industry needs and standards. Achieving these learning outcomes will assist you to meet the desired graduate outcomes set at QUT - aligned with other internationally renowned business schools. Students will develop the following capabilities relevant to a contemporary global and sustainable business environment:

Have knowledge and skills pertinent to a particular discipline (KS)
1.1 Well-researched knowledge and critical understanding applied to issues at the forefront of a specialised discipline area
1.2 Ability to select and use effectively a range of tools and technologies to locate and/or generate information appropriate to the disciplinary context

Be critical thinkers and effective problem solvers (CTA)
2.1 Apply logical, critical and creative thinking and judgement to generate appropriate solutions to problems in the disciplinary context

Be professional communicators in an intercultural context (PC)
3.1 Ability to create and present professional documents and/or reports using high levels of analysis/synthesis/evaluation for a range of contexts and audiences
3.2 Ability to orally communicate and justify ideas and information, at a professional level, for a variety of contexts and audiences, including peers and discipline specialists

Be able to work effectively in a Team Environment (TW)
4.1 Operate effectively and with flexibility to achieve common goals in collaborative settings, using a range of skills, including leadership, negotiation, reflection, proactivity and support for team members

Have a Social and Ethical Understanding (SEU)
5.1 Apply knowledge of the ethical, social and cultural dimensions relevant to business situations, including appropriate standards or codes of practice, to provide courses of action

Unit Objectives
After completing this unit, all students should be able to:

1. Fully understand the theoretical foundations underlying security analysis and portfolio management
2. Recognise the assumptions underlying various investment strategies
3. Be aware of the issues involved in bond and equity portfolio management
4. Identify the role of derivatives in modern portfolio management
5. Employ a three-stage security analysis approach
6. Use a number of techniques to evaluate portfolio performance

The specific course learning goals and unit objectives that apply to this unit are shown in the assessment section of this unit outline.

Content

Topics covered in this unit include:

Portfolio Theory and Asset Pricing

Equity Valuation Models

Bond Valuation and Management of Fixed Income Portfolios

Use of Futures and Options in Portfolio Management

Asset Allocation

Performance Evaluation

Approaches to Teaching and Learning

Lectures and tutorials are designed to be an interactive forum, where students develop strong communication and reasoning skills as well as quantitative analysis skills.

In accordance with QUT policy, all units are to be subject to Criterion Referenced Assessment (CRA). The unit coordinator will provide students with further details regarding CRA during the course of the semester during class and on the unit's Blackboard site.

Assessment

Students will receive feedback in various forms throughout the semester which may include:

Informal: worked examples, such as verbal feedback in class, personal consultation

Formal: in writing, such as checklists (e.g. criteria sheets), written commentary

Direct: to individual students, either in written form or in consultation

Indirect: to the whole class

Assessment name: Project
Description: The term project involves application of investment principles and will evaluate the research and analytical skills you will learn in this unit. Project preparation (5%) is due in week 6; and the final draft (35%) is due in week 10.
Length/Duration: 5,000 words
Formative or Summative: Formative and Summative
Relates to objectives: Unit objectives: 1, 2, 3, 4, 5, 6 and AOL goals: KS (1.1), (1.2), CTA (2.1), PC (3.1), TW (4.1), SEU (5.1)
Weight: 40%
Internal or external: Internal
Group or individual: Group
Due date: Weeks 6 and 10

Assessment name: End of Semester Examination
Description: The final exam will cover all topics except the contents of weeks 4 and 5. The final paper will consist of short answer questions. It is a closed book exam.
Length/Duration: 2 hours + 10 minutes perusal
Formative or Summative: Summative
Relates to objectives: Unit objectives: 1, 2, 3, 4, 5, 6 and AOL goals: KS (1.1), CTA (2.1), PC (3.1), SEU (5.1)
Weight: 60%
Internal or external: Internal
Group or individual: Individual
Due date: Central Exam Period

Academic Honesty

QUT is committed to maintaining high academic standards to protect the value of its qualifications. To assist you in assuring the academic integrity of your assessment you are encouraged to make use of the support materials and services available to help you consider and check your assessment items. Important information about the university's approach to academic integrity of assessment is on your unit Blackboard site.

A breach of academic integrity is regarded as Student Misconduct and can lead to the imposition of penalties.

Resource materials

Prescribed Text
Bodie, Z., Kane, A., and Markus, A. (2012). Essentials of Investments (9th edition) ) McGraw Hill

This text will form the core reading for most topics. A number of related texts are available, and provide acceptable supplementary reading. You may use these alternatives for exam preparation, etc.

Reference
Brailsford, T., Heaney, R. and Bilson, C. (2011). Investments: Concepts and Applications (4th edition). . Cengage.


Elton. E., Gruber, M., Brown. S. and Goetzmann, W. (2007). Modern Portfolio Theory and Investment Analysis, 7th Edition, John Wiley & Sons, Singapore.

Brailsford, T., Heaney, R. and Bilson, C. (2007). Investments: Concepts and Applications (3rd edn.). Thomson.

Other Resources
There are many other publications found in the library. For articles (newspaper, research, etc.), and databases (Morningstar, Aspect etc) the library's electronic resource network is most helpful. See the Information Desk for details. Bloomberg data can be accessed from the terminal located at the Securities Dealing Room in the School of Economics and Finance. Additional reference material can also be found at the unit's Blackboard site: http://blackboard.qut.edu.au

Risk assessment statement

There are no out-of-the-ordinary risks associated with lectures or tutorials in this unit. You should, however, familiarise yourself with evacuation procedures operating in the buildings in which you attend classes and take the time to
view the Emergency video.

Disclaimer - Offer of some units is subject to viability, and information in these Unit Outlines is subject to change prior to commencement of semester.

Last modified: 07-Feb-2013