University of Technology Sydney

25721 Investment 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 2024 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 is designed to provide an understanding of the investment process and to develop a set of tools for making investment and portfolio decisions. It provides an overview of the paradigms of modern portfolio theory, and a foundation for analysing the risks and returns of investment portfolios. Specific topics include the measurement of risk and return, the construction of efficient portfolios, the pricing of risk, equity valuation, market efficiency and investor behaviour.

Subject learning objectives (SLOs)

Upon successful completion of this subject students should be able to:
1. evaluate the roles played by risk and return in asset pricing models
2. construct and analyse investment portfolios
3. apply valuation techniques to equity and fixed-income securities
4. compute portfolio performance measures
5. explain links between the theory and the practice of investment management.

Contribution to the development of graduate attributes

This subject focuses on many aspects of the financial investment process. The subject contributes to the course by ensuring that students are provided with a detailed analysis of the concepts and techniques used by analysts and fund managers to construct suitable investment portfolios. Investment techniques are practically applied to Australian and overseas securities.

This subject contributes to the development of the following graduate attribute(s):

  • Professional and technical competence

Teaching and learning strategies

This subject is presented using a combination of lectures, case studies, readings and videos. Students are expected to take the lead in promoting informed discussion of key concepts.

This subject will use the ‘flipped education’ model where students will have access to online learning resources and will undertake preliminary learning tasks prior to coming to classes where a high level of interaction is expected in order to encourage students to develop their own economic intuition and formulate their own views. The learning management system and Excel spreadsheets are used extensively. When possible, we bring current research into the classroom. We do this through discussion, referring to topical papers and analysing current data from the financial markets. Consistent with Learning Futures, this subject will enable students to experience an effective integration of online and face-to-face on-campus learning.

Students will receive feedback in the following ways: Class participation – opportunity to discuss and work through problems in a group, then get immediate feedback from the lecturer; Assessments – general feedback will be provided on the learning management system, students can also receive individual feedback by attending one-on-one consultations with a lecturer; Discussion Board – individual questions related to lecture materials, tutorial questions and assessments can be posted on the learning management system and will be monitored and answered by lecturers.

Nature of classes

During classes, students will be required to engage in collaborative learning. Students will be asked to form groups for in-class discussions and also work through problems together from the tutorials. Note that in order to get the most value out of those group exercises, it is very important to prepare in advance by reading the lecture slides, relevant chapters from the textbook and also articles from the ancillary reading list. You are most welcome to ask questions during classes, remember there are no stupid questions; this provides instant feedback to your lecturer about your current level of understanding.

Nature of assessments

Students will be required to provide written and numerical responses in exams and the assignment. The assessments provide students with the opportunity to demonstrate their understanding of theory, its practical application, and its interpretation. The assessments also assist students to further develop skills in the areas of report writing, the articulation of abstract ideas, and the ability to discuss current developments in the context of established paradigms and practices. The course uses data from sources such as ASIC, ASX, AOFM and the RBA.


It is expected that students will spend around six hours per week studying this course. This time should be made up of preparing for class by reading the chapters associated with each lecture, reading the ancillary material provided on the learning management system, and working through the tutorials. Students are expected to participate in discussions in class. In periods where you need to complete assignments or prepare for examinations, the workload will be greater.


Students are strongly encouraged to use the Discussions on the learning management system to ask questions related to lecture materials, tutorial problems and assessments. Note that Discussions is not only a platform for students to interact with their lecturers, it also presents a great opportunity for collaborative learning among the students themselves. You are more than welcome to answer other students' queries, do not worry about being wrong since the Discussions will regularly be monitored by the subject coordinator.

An aim of this subject is to help you develop academic and professional language and communication skills to succeed at university and in the workplace. During the course of this subject, you will complete a milestone assessment task that will, in addition to assessing your subject-specific learning objectives, assess your English language proficiency.

Content (topics)

  • Rates of return, investment mathematics and statistics
  • Theory of efficient markets and behavioural finance concepts
  • Risk and return, portfolio theory, combinations of securities in portfolios.
  • The single index model
  • Capital asset pricing model
  • Equity valuation models
  • Fund performance evaluation and attribution
  • Fixed income portfolio analysis and bond portfolio immunization


Assessment task 1: Assignment (Group and Individual)


Assignment Part 1 (Individual) : 15%

Assignment Part 2 (Group) : 20%


This addresses subject learning objective(s):

1, 2, 3, 4 and 5

Weight: 35%
  • Accuracy of the computational results done in Excel
  • Correct interpretations of the results
  • Presentation of the report

Assessment task 2: Quiz (Individual)*


This addresses subject learning objective(s):

1, 2, 3, 4 and 5

Weight: 15%

1 hour

  • Accuracy of response
  • No marks will be given for partially correct answers

*Note: Late submission of the assessment task will not be marked and awarded a mark of zero.

Please note that you must attempt the quiz in the class which you are enrolled in. Failure to attend the quiz without a satisfactory reason will result in a mark of zero.

Students who failed to attend the 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 the composite mark for the final exam is more than 50 percent and the student is in the final subject of their degree, 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 Exam (Individual)


This addresses subject learning objective(s):

1, 2, 3, 4 and 5

Weight: 50%

Two hours

  • Accuracy of calculations and interpretations
  • Marks will be given for partially correct answers

Minimum requirements

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

Required texts

Bodie, Z., Kane, A., and Marcus A.J, 2022, Essentials of Investments, 12th edition, McGraw-Hill Education; ISBN: 978-1-265-45009-0 (paperback).

UTS Business School Guide to Writing Assignments 2018,