20510 Investment Analysis
Warning: The information on this page is indicative. The subject outline for a
particular session, location and mode of offering is the authoritative source
of all information about the subject for that offering. Required texts, recommended texts and references in particular are likely to change. Students will be provided with a subject outline once they enrol in the subject.
Subject handbook information prior to 2024 is available in the Archives.
Credit points: 6 cp
Subject level:
Undergraduate
Result type: Grade and marksThere are course requisites for this subject. See access conditions.
Description
This subject introduces the conceptual and theoretical framework of the portfolio approach to investments. It applies the techniques of mean-variance diversification to portfolio construction and the investment management process. Asset pricing models and their application to investment management are also reviewed. Other topics covered include bond portfolio management, active and passive investment strategies and the measurement of investment performance.
Subject learning objectives (SLOs)
| 1. | discuss the role of risk and return in the investment management process; |
|---|---|
| 2. | appraise theories relating to asset pricing and portfolio choice; |
| 3. | evaluate risky asset classes and associated risk management techniques; |
| 4. | identify problems and issues in investment management |
Contribution to the development of graduate attributes
The subject contributes to the aim of preparing students to commence a fulfilling and effective career in business, especially in investment management. It pursues this aim through the study of the theory and practice of portfolio construction under uncertainty. Asset selection and risk management techniques are considered and applied in investment management. Principal asset classes are analysed in the context of their contribution to portfolio objectives, risk and return. Portfolio performance is monitored to illustrate the problems and issues in investment management.
Teaching and learning strategies
Each week a two-hour lecture will present and analyse the relevant theories and concepts required to understand the world of modern investment management. Practical exercises and application of these concepts are then examined in detail in both on-line and off-line learning opportunities, and during interactive tutorial sessions. Alongside these activities, an in-depth, Excel-based, group assignment will also be undertaken outside of class time to allow for authentic collaborative learning which will bridge the gap between theory and practice. The Canvas site will be used extensively to share all materials and information.
The learning activities available to students are:
- Pre-lecture videos and articles: Students are required to watch and read a number of introductory online videos and articles before coming to each lecture. This will enable increased interaction during class and allow for active learning during lectures (such as small group discussions).
- Weekly lectures: These provide the main vehicle for the development of course content. Each week new material builds upon and develops earlier material and so it is important to consolidate understanding of one lecture before attending the next.
- Tutorial problems: A set of theoretical and practical problems associated with each lecture will be posted on Canvas each week. Students are encouraged to make a genuine attempt to solve these problems independently before seeking help from classmates or online. Abbreviated written solutions will accompany the tutorial problems to provide self-assessment and feedback, however these solutions are designed to be a check on students’ own work and not instructional. Instructional videocasts of tutorial solutions will also be provided online (with a lag of one week) which include much more detail and additional interactive exercises. The tutorial problems are an integral part of the subject and their importance cannot be underestimated.
- Weekly tutorial sessions: A formal one-hour tutorial session will take place each week and each student will be allocated to a specific tutorial session; note that sessions will only start during the second week of classes. These sessions are designed to allow students to obtain feedback on their attempted solutions to the tutorial problems, as such students are required to attempt the assigned problems prior to attending the session and to come prepared to discuss their attempted answers in class. There will also be two in-class quizzes during the tutorial sessions throughout the semester.
- Canvas engagement: To stimulate collaborative learning, students are encouraged to use the Canvas discussion board. The discussion board is a forum for students to post subject-related inquiries, discuss topics, and exchange ideas with classmates. The discussion board is a great tool for discussion between students and will also be monitored regularly by the lecturer(s) and tutors.
Content (topics)
- Risk and return;
- Portfolio theory, asset pricing theories and market efficiency;
- Asset pricing models;
- Active and passive strategies;
- Performance measurement;
- Fixed-income portfolio management.
Assessment
Assessment task 1: Assignment (Group)
| Objective(s): | This addresses subject learning objective(s): 1, 2, 3 and 4 |
|---|---|
| Weight: | 30% |
| Length: | The group report should have a maximum of 6 pages double spaced with 12 size font. |
Assessment task 2: In-class quizzes (Individual)*
| Objective(s): | This addresses subject learning objective(s): 1 and 2 |
|---|---|
| Weight: | 20% |
| Criteria: | *Note: Late submission of the assessment task will not be marked and awarded a mark of zero. There will be no other opportunities to take these quizzes. Students who fail to attend a quiz will have the weighting of that assessment task added to the final examination conditional on the students submitting, receiving approval and complying with the requirements of special consideration in accordance with the UTS rules. If no such approval is given then a mark of zero will be awarded and no further opportunities to sit for the quiz will be given. If the composite mark for the final exam is more than 50 percent, the UTS rules on borderline result (range of 45-49, inclusive) shall apply whereby students will be allowed to undertake a supplementary final examination. Where a student completes and passes a supplementary examination, the maximum mark awarded for the subject will be 50 Pass. |
Assessment task 3: Final Examination (Individual)
| Objective(s): | This addresses subject learning objective(s): 1, 2, 3 and 4 |
|---|---|
| Weight: | 50% |
| Length: | 2 hours plus 10 minutes reading time. |
Minimum requirements
To pass this subject you must achieve a combined grade of at least 50% for your assignment plus mid-semester and final exams.
Required texts
Zvi Bodie, Alex Kane and Alan Marcus, Investments, 12th edition, McGraw-Hill, 2021. (BKM)
It is available from UTS library in ebook format. Students can read it online or download it by chapter in pdf.
Recommended texts
Edwin J. Elton, Martin J. Gruber, Stephen J. Brown, and William N. Goetzmann, Modern Portfolio Theory and Investment Analysis, 9th edition, Wiley, 2014.
An E-text version is available for $65 by going to the following link and scrolling to the bottom of the page:
http://au.wiley.com/WileyCDA/WileyTitle/productCd-EHEP002927.html
Other resources
Consultation Times
The lecturer(s) will be available for consultation at certain times of the week. These consultation times will be made available on Canvas.
The Canvas Discussion Board
The Canvas discussion board is a forum for students to post subject-related inquiries, discuss topics, and exchange ideas with classmates. If you are struggling with a tutorial problem, we recommend that you post a query on the discussion board. It is quite likely that one of your classmates will be able to assist you. Please note that the discussion board is a great tool for discussion between students and will be monitored regularly by the lecturer and tutors and you are encouraged to make good use of it.