Investments and Portfolio Analysis (11230.2)

The unit covers fundamental concepts used in the construction and analysis of portfolios of financial instruments, with an emphasis on equities and fixed interest securities. It covers key financial issues related to asset pricing theories, modern portfolio theory and its applications, market efficiency, evaluation of investments, pricing and the construction and analysis of a multi-asset portfolio. These tools will be used to analyse and prepare recommendations for hypothetical clients in ways which ensure the primacy of the client's position.

Learning outcomes

After successful completion of this unit, students will be able to:
1. Explain and apply modern portfolio theory in a range of practical situations;
2. Critique the implications of capital market efficiency for security selection styles such as technical and fundamental analysis;
3. Evaluate bonds as an investment alternative and consider bond portfolio strategies;
4. Appraise managed funds as an investment vehicle;
5. Evaluate risks and returns in the context of an investment portfolio;
6. Apply the knowledge of behavioural finance to identify investment patterns displayed by investors while making investment decisions.
7. Conduct investment analysis and prepare recommendations for hypothetical clients on a range of investment actions, including how to handle conflicts of interests and the primacy of the client's position.

Graduate attributes

1. UC graduates are professional - communicate effectively
1. UC graduates are professional - display initiative and drive, and use their organisation skills to plan and manage their workload
1. UC graduates are professional - employ up-to-date and relevant knowledge and skills
1. UC graduates are professional - use creativity, critical thinking, analysis and research skills to solve theoretical and real-world problems
1. UC graduates are professional - work collaboratively as part of a team, negotiate, and resolve conflict
2. UC graduates are global citizens - behave ethically and sustainably in their professional and personal lives
2. UC graduates are global citizens - communicate effectively in diverse cultural and social settings
2. UC graduates are global citizens - make creative use of technology in their learning and professional lives
2. UC graduates are global citizens - think globally about issues in their profession
3. UC graduates are lifelong learners - adapt to complexity, ambiguity and change by being flexible and keen to engage with new ideas

Prerequisites

11215 Business Finance

Corequisites

None.

Incompatible units

6378 Investments

Equivalent units

None.

Assumed knowledge

School/college level mathematics and/or statistics, accounting or economics knowledge.