16657 Property Investment and Portfolio Management
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Subject handbook information prior to 2024 is available in the Archives.
Credit points: 6 cp
Result type: Grade and marks
Requisite(s): 16642 Property Investment and Valuation
These requisites may not apply to students in certain courses. See access conditions.
Description
This subject introduces the theoretical and applied framework of the portfolio approach to investments. It focuses on the key principles of investment theory and practice and applies them in a strategic context. This subject is designed to provide an understanding of the investment process and to develop a set of tools for making investment and portfolio decisions which can be applied in a practical context.
On completion of the subject students are able to demonstrate the application of the framework of modern portfolio theory, and a foundation for analysing the risks and returns of asset types and investment portfolios. Specific topics include the attributes of various asset classes, the impact of monetary and fiscal policy settings on investment performance, measurement of risk and return, the construction of efficient portfolios, the pricing of risk and investor behaviour.
Subject learning objectives (SLOs)
On successful completion of this subject, students should be able to:
| 1. | Communicate an investment strategy in a market report format. |
|---|---|
| 2. | Evaluate the role of risk and return in the asset allocation decision. |
| 3. | Explain links between investment theory and application to a diversified portfolio with current monetary and fiscal policy settings. |
| 4. | Identify the attributes of different asset types and their role in a diversified portfolio. |
| 5. | Identify and utilise major sources of financial market information to report on investment strategy and individual investments. |
| 6. | Construct a diversified portfolio and prepare economic and financial reports articulating their current investment strategy. |
Course intended learning outcomes (CILOs)
This subject also contributes to the following Course Intended Learning Outcomes:
- Effectively apply a variety of communication skills and technologies in professional contexts (C.1)
- Analyse data to make investment decisions in various contexts (P.2)
- Apply financial principles to property economics issues (P.5)
- Source, evaluate and use information within defined parameters (R.2)
- Critically analyse, structure and report the results of research (R.3)
Contribution to the development of graduate attributes
The term CAPRI is used for the five Design, Architecture and Building faculty graduate attribute categories where:
C = communication and groupwork
A = attitudes and values
P = practical and professional
R = research and critique
I = innovation and creativity.
Course intended learning outcomes (CILOs) are linked to these categories using codes (e.g. C-1, A-3, P-4, etc.).
Teaching and learning strategies
Delivery will be by weekly sessions and will include lectures on key concepts, presentations by guest lecturers on real life case studies and specialist material. Active learning opportunities will be integrated with each session through group discussion, class workshops, and in class participation by students and student groups. Moreover, learning strategies have been integrated into the subject learning philosophy to encourage students to take ownership of their learning experience, including the use of online presentations (UTS Canvas) which are to be viewed prior to the first lecture and weekly sessions.
Lectures are augmented with online activities and quizzes to assess the level of understanding in the content and application and to offer feedback to students on how well they are understanding the subject content. Online reference and resource materials are provided throughout the semester and on UTS Canvas. Relevant news topics (budget, RBA decisions) that relate to the subject will be incorporated into the weekly sessions so that student can understand the relevance of the subject content in 'real life' decision making. Students will be engaged through the use of pre-readings, online quizzes and hypothetical scenarios which stimulate problem based learning. Collaborative problem-solving exercises involving current financial markets and case studies will reinforce key concepts. Feedback on submitted assessment items will be provided through Review and UTS Canvas.
Content (topics)
Topics covered in this subject include:
- The relationship between risk and return in a portfolio context
- Attributes of different asset types (fixed interest, equities, derivatives, property), the markets in which they are traded and their function in a diversified portfolio
- The role of the Australian financial system in investment performance
- The main participants in the Australian investment industry
- Asset allocation in a portfolio context and the relationship with investment strategy
- Modern Portfolio Theory
- Measurement of risk and return
- The principle of diversification in an investment portfolio
- Beta
- Capital Asset Pricing Model
- Arbitrage Pricing Theory
- Measurement of portfolio performance
Assessment
Assessment task 1: Participation and Discussion
| Intent: | This assessment task challenges students to develop their understanding and reasoning through a series of in class and online activities. These activities are designed to reinforce major concepts delivered formally and students are encouraged through engagement to develop their knowledge. | ||||||||||||||||
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| Objective(s): | This task addresses the following subject learning objectives: 2, 3 and 4 This task also addresses the following course intended learning outcomes that are linked with a code to indicate one of the five CAPRI graduate attribute categories (e.g. C.1, A.3, P.4, etc.): P.2 and P.5 | ||||||||||||||||
| Type: | Quiz/test | ||||||||||||||||
| Groupwork: | Individual | ||||||||||||||||
| Weight: | 15% | ||||||||||||||||
| Criteria linkages: |
SLOs: subject learning objectives CILOs: course intended learning outcomes |
Assessment task 2: Major Report
| Intent: | This assessment task challenges students to analyse applied concepts of Modern Portfolio Theory utilising current market situations. This requires identifying and discussing current financial and economic situations impacting upon investments. Students must produce a market research report. | ||||||||||||||||
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| Objective(s): | This task addresses the following subject learning objectives: 1, 5 and 6 This task also addresses the following course intended learning outcomes that are linked with a code to indicate one of the five CAPRI graduate attribute categories (e.g. C.1, A.3, P.4, etc.): C.1, R.2 and R.3 | ||||||||||||||||
| Type: | Report | ||||||||||||||||
| Groupwork: | Individual | ||||||||||||||||
| Weight: | 45% | ||||||||||||||||
| Criteria linkages: |
SLOs: subject learning objectives CILOs: course intended learning outcomes |
Assessment task 3: Exam
| Intent: | This is a closed book exam which assesses all the learning undertaken during the course of this subject. The questions are predominant applied and assess the students learning through demonstration of critical analysis and the ability to derive conclusions. | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Objective(s): | This task addresses the following subject learning objectives: 3 and 4 This task also addresses the following course intended learning outcomes that are linked with a code to indicate one of the five CAPRI graduate attribute categories (e.g. C.1, A.3, P.4, etc.): P.2 and P.5 | ||||||||||||||||
| Type: | Examination | ||||||||||||||||
| Groupwork: | Individual | ||||||||||||||||
| Weight: | 40% | ||||||||||||||||
| Criteria linkages: |
SLOs: subject learning objectives CILOs: course intended learning outcomes |
Minimum requirements
The DAB attendance policy requires students to attend no less than 80% of formal teaching sessions (lectures and tutorials) for each class they are enrolled in to remain eligible for assessment.
References
For the Financial Markets Component
Hunt, B., & Terry, C., 2011, Financial institutions and markets. Cengage Learning
For the Investment Component
Haugen, R. A.,2001, Modern investment theory (Vol. 5). Upper Saddle River, NJ: Prentice Hall Elton, E. J., Gruber, M. J., Brown, S. J., & Goetzmann, W. N., 2014, Modern portfolio theory and investment analysis. John Wiley & Sons.
Students are strongly encouraged to read the Australian Financial Review and the financial pages of the Australian and the Sydney Morning Herald.