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25773 Investments and Risk Management

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 2020 is available in the Archives.

UTS: Business: Finance
Credit points: 6 cp

Subject level:


Result type: Grade and marks

There are course requisites for this subject. See access conditions.


This subject provides students with an in-depth understanding of both the theoretical and the practical aspects of modern portfolio management. In terms of theory, students learn about the fundamental factors driving the value of financial assets, the asset management process, the role of diversification and alternative asset classes, the concept of market efficiency and its limits, and the effect of behavioural biases on the financial decisions and outcomes of individual investors. The practical aspects of the subject involve implementing asset management solutions for hypothetical clients, including the forecast of long-term returns, the construction of diversified portfolios, the assessment of the client financial needs and risk tolerance.

Subject learning objectives (SLOs)

Upon successful completion of this subject students should be able to:
1. Understand the factors driving the value of financial assets
2. Build and manage portfolios of financial assets
3. Analyse cost, risk, and profitability of portfolios of financial assets
4. Understand the effect of behavioural biases on the outcomes of investment decisions

Contribution to the development of graduate attributes

This subjects provides students with a hands-on understanding of the best practices in the investment management industry and of fundamental forces driving the value of financial assets. Students are encouraged to read industry publications to understand the decision process of the key players in the industry. As such this subject contributes particularly to the development of these graduate attributes:

  1. Business knowledge and concepts
  2. Critical thinking, creativity and analytical skills
  3. Business practice oriented skills

This subject contributes to the development of the following Program Learning Objectives:

  • PLO 3.3 Demonstrate knowledge and best practice for dealing with behavioural biases in communication and interaction with financial planning clients

Teaching and learning strategies

This subject strives to provide students with a hands-on understanding of the best practices in the investment management industry. In the on-line component students are encouraged to read a number of industry publications in order to understand how theoretical financial principles are incorporated in industry practice. A significant portion of the face-to-face class time will be devoted to numerical simulations where the theoretical principles will have to be applied to the concrete situation of a prospective investor.

Content (topics)

  1. The economic environment and the value of financial assets
  2. Portfolio construction and diversification
  3. The role of alternative investments
  4. The CAPM: Market equilibrium and market efficiency
  5. Common risk factors/ APT approach to portfolio planning
  6. The asset management industry
  7. Investment strategies: Measuring costs and risk
  8. Behavioral biases that impact investment decisions


Assessment task 1: Quiz on the content of the online learning component


This addresses subject learning objective(s):

1, 3 and 4

Type: Quiz/test
Groupwork: Individual
Weight: 20%

Assessment task 2: Individual assignment


This addresses subject learning objective(s):

2 and 3

Type: Report
Groupwork: Individual
Weight: 40%

Assessment task 3: Written final exam (open book)


This addresses subject learning objective(s):

1, 3 and 4

Type: Examination
Groupwork: Individual
Weight: 40%

Minimum requirements

Students must achieve at least 50% of the subject’s total marks.

Required texts

Mandatory reading and other learning material will be placed on Canvas.


Bodie, Z., Kane, A. and Marcus, A.J., 2017. Investments, McGraw-Hill/Irwin.

Baker, H.K. and Ricciardi, V., 2014. Investor behavior: The psychology of financial planning and investing. John Wiley & Sons.