La Trobe Business School

INVESTMENT AND PORTFOLIO MANAGEMENT FIN3IPM

Subject Learning Guide Semester two 2015 Melbourne Campus (Bundoora) Subject Coordinator(s): Edward J. Podolski

La Trobe University

2

Table of Contents

SUBJECT DETAILS 3

GENERAL DETAILS 3 ENROLMENT REQUIREMENTS 3 STAFF CONTACTS 3 SUBJECT DESCRIPTION 3 SUBJECT INTENDED LEARNING OUTCOMES (SILOS) 3 GRADUATE CAPABILITIES 4 LEARNING ACTIVITY SUMMARY 4 ASSESSMENT AND FEEDBACK SUMMARY 4 LEARNING RESOURCES 4 STUDENT FEEDBACK ON SUBJECT SURVEY 4 FOR INFORMATION ON STUDENT FEEDBACK ON SUBJECTS REFER TO: 4 HTTP://WWW.LATROBE.EDU.AU/STUDENTS/GET-INVOLVED/SPEAK-UP/SUBJECTS-TEACHING 4

POLICIES, PROCEDURES AND GUIDELINES 5

ACADEMIC INTEGRITY 5 SPECIAL CONSIDERATION 5 EXTENSIONS, LATE SUBMISSIONS AND PENALTIES 5

SCHEDULE OF LEARNING ACTIVITIES 6

SESSION PLAN 6 LEARNING ACTIVITY DETAILS 6 STUDENT LEARNING UNIT (SL) 6 LEARNING MANAGEMENT SYSTEM (LMS) 7 LIBRARY 7 STUDENT SUPPORT SERVICES 7 PEER LEARNING ADVISERS 7

ASSESSMENT AND FEEDBACK DETAILS 8

La Trobe University

3

Subject Details

GENERAL DETAILS

Subject Code: FIN3IPM Subject Title: Investment and Portfolio Management

Teaching Period: Semester two Location(s): Melbourne Campus

Credit Points: 15 Points Mode: On-campus Level: 3

ENROLMENT REQUIREMENTS

Prerequisites: FIN2FIN or FIN1FOF

Co-requisites: NA

Incompatibles: NA

Assumed Skills & Knowledge: Basic competence with high school level mathematics is assumed, in particular algebra and the ability to manipulate and solve equations

Special Study Requirements: NA

STAFF CONTACTS

Role Campus Name Email Telephone Room

Subject Coordinator Bundoora Edward J. Podolski E.Podolski-Boczar@latrobe.edu.au 394792123 MAR470

Tutor Bundoora Nhung Le Nhung.Le@latrobe.edu.au 394795317 HU3-130

SUBJECT DESCRIPTION

This subject focuses on the principles of investment. The key components of the subject include portfolio theory and the application of risk and return concepts to portfolio construction. The subject looks at equilibrium in equity markets, including CAPM as a theory of asset pricing. This leads to the study of the market model and multi-factor models of security returns. Students will also be introduced to the valuation of equity securities. Finally, students will examine portfolio theory and its practical application to portfolio evaluation and management as it relates to both equity and bond portfolios.

SUBJECT INTENDED LEARNING OUTCOMES (SILOS)

Upon successful completion of this subject, you should be able to:

1 Formulate the risk return trade-off encapsulated in portfolio theory and the Markowitz model

2 Justify the CAPM and its alternative the APT and critique these theories using empirical evidence.

3 Estimate the value of fixed income securities, understand the relevance of the term structure of interest rates and apply duration to the management of bond portfolios

4 Value share values using multi-stage discount and other equity valuation models

5 Justify how industry-wide factors and key macroeconomic factors affect financial asset valuation.

6 Apply the common measures of portfolio performance evaluation and evaluate the issues relating to active portfolio management

La Trobe University

4

GRADUATE CAPABILITIES

The following Graduate Capabilities (GCs) are evaluated in this subject:

GC GC Point

a Writing Capstone

b Inquiry/Research Mid-point

c Critical Thinking Capstone

d Creative Problem Solving Capstone

e Communication Mid-point

f Discipline Specific Competencies Capstone

LEARNING ACTIVITY SUMMARY

Learning Activity: Schedule

Lectures Weeks 1-12

Tutorials Weeks 2-12

Further information is available at http://www.latrobe.edu.au/timetable/

ASSESSMENT AND FEEDBACK SUMMARY

Assessment Tasks: Due Date SILOs GCs % Comments

Tutorial Participation Ongoing throughout semester

1 to 7 A to F 10% Students will be required to attend tutorials and participate in tutorial discussions.

Weekly online quiz Ongoing throughout semester

1 to 7 A to F 10% A weekly online quiz to be completed before each weeks tutorials

Mid-semester test (1 hr) Week 9 1 to 7 A, B, C, D 10% Students will be required to sit an in-class mid-semester test in week 9

Final examination (3 hrs) Examination period 1 to 7 A, B, C, D 70% Contains both Multiple Choice and Essay questions

LEARNING RESOURCES

Reading Type Title Author and Year Publisher

Textbook

This textbook is compulsory

Principles of Investments Bodie, Z., Drew, M., Basu, A., Kane, A., and Marcus, A (2013)

McGraw Hill

STUDENT FEEDBACK ON SUBJECT SURVEY

The Student Feedback on Subjects (SFS) Survey is part of the quality assurance process that occurs across the university. In this survey you are invited to tell us about your learning experiences in this subject. Your views will be taken seriously and will assist us to enhance this subject for the next group of students. The surveys are anonymous, and you will be invited to participate via an email sent to your account during the survey period.

For information on Student Feedback on Subjects refer to:

http://www.latrobe.edu.au/students/get-involved/speak-up/subjects-teaching

La Trobe University

5

Policies, Procedures and Guidelines

The University has a comprehensive policy framework to which both staff and students must adhere. You should familiarise yourself with those policies, procedures and guidelines likely to affect you especially the following:

Academic Integrity

Academic Progress

Assessment and Feedback

Extension to Submission Dates

Late Submission of Assessment Tasks

Occupational, Health and Safety [OHS]

Privacy

Special Consideration

Student Charter

Use of Electronic Mail

The relevant policies, procedures and guidelines can be found on the website at: http://www.latrobe.edu.au/policy/

Academic Integrity

Academic integrity means being honest in academic work and taking responsibility for learning the conventions of scholarship. La Trobe University views this seriously as evidenced by the following extract:

Academic honesty is a fundamental principle in teaching, learning, research and scholarship. The University requires its academic staff and students to observe the highest ethical standards in all aspects of academic work and it demonstrates its commitment to these values by awarding due credit for honestly conducted scholarly work, and by penalising academic misconduct and all forms of cheating.

Academic Integrity Procedures (2012, p. 1 of 6)

Academic misconduct includes improper referencing, plagiarism, copying and cheating. You should familiarise yourself with your responsibilities in relation to Academic Integrity and if you have any questions, direct them to your Course Coordinator. Information can be found on the website at: http://www.latrobe.edu.au/students/learning/academic-integrity.

For assistance with referencing visit http://www.latrobe.edu.au/students/learning/academic-integrity/referencing-help

Special Consideration

Special Consideration is the term used to describe a process that applies an equity measure to ensure that where any temporary adverse circumstances beyond the control of a student, that impact negatively on that student’s ability to demonstrate their learning achievement for an assessment task, is taken into account.

Eligibility to apply for Special Consideration does not automatically imply eligibility to receive it. Certain criteria must be satisfied in order to receive Special Consideration.

Please refer to the relevant policies, procedures and guidelines website at: http://www.latrobe.edu.au/policy/

Extensions, Late Submissions and Penalties

There are policies and procedures to guarantee fair, consistent and transparent treatment of late submission of assessment tasks provide equity around extensions to submission dates and penalties associated with not submitting assessment by the due date and time.

Please refer to the relevant policies, procedures and guidelines website at: http://www.latrobe.edu.au/policy/

Submission of special consideration applications for assignments, mid-semester tests and final examinations should be made online at: http://www.latrobe.edu.au/special-consideration

La Trobe University

6

Schedule of Learning Activities

Session Plan

Week Date Topic Activity Assessment % Resources SILOs GCs

1 27 July 2015

Asset Classes and Risk and Return

Lecture 1 Bodie Chapter 2 & 5

1 A-F

2 3 August 2015 Portfolio Theory

Lecture 2

Tutorial 1

Bodie Chapter 6

1 A-F

3 10 August 2015 Asset Pricing Theories

Lecture 3

Tutorial 2

1 Bodie Chapter 7

2 A-F

4 17 August 2015 Market Efficiency

Lecture 4

Tutorial 3

1 Bodie Chapter 8

5 A-F

5 24 August 2015 Equity Valuation

Lecture 5

Tutorial 4

1 Bodie Chapter 11

4 A-F

6 31 August 2015

Macroeconomic and Industry Analysis

Lecture6

Tutorial 5

1 Bodie Chapter 12

5 A-F

7 7 September 2015

Financial Statement Analysis

Lecture 7

Mid semester test

1 Bodie Chapter 13

1, 2, 4, 5

A-F

8 14 September 2015 Bond Valuation

Lecture 8

Tutorial 7

1 Bodie Chapter 9

3 A-F

9 21 September 2015

Managing Bond Portfolios

Lecture 9

Tutorial 8

1 Bodie Chapter 10

3 A-F

Mid Semester Break

10 5 October 2015

Managed Funds and Hedge Funds

Lecture 10

Tutorial 9

1 Bodie Chapters 16 & 17

6 A-F

11 12 October 2015

Portfolio Performance and Evaluation

Lecture 11

Tutorial 10

1 Bodie Chapter 18

6 A-F

12 19 October 2015 Exam Revision

Lecture 12

Tutorial 11

1

1-6 A-F

26-29 October 2015 STUDY VACATION

27 October-19 November 2015

CENTRAL EXAMINATION PERIOD

Learning Activity Details

<<Add any appropriate general information>>

Times and rooms are subject to change. To view the full time and location details for learning activities in this subject, please ensure you seek

further information available at http://www.latrobe.edu.au/timetable/.

You should also regularly check [at least once per week] the subject’s LMS site (where applicable) for updated information.

Student Learning Unit (SL)

The Student Learning Unit (SL) works closely with teaching staff in the Schools and on the Melbourne and regional campuses to ensure that all La Trobe students – including those from non-English-speaking backgrounds – develop high-level academic speaking, writing, reading, and numeracy skills required for successful learning in their courses. For further information, please see the website at: http://www.latrobe.edu.au/students/learning/

La Trobe University

7

Learning Management System (LMS)

The Learning Management System (LMS) is an Internet based system which allows you access to learning materials and to interact with other students and teaching staff in activities related to your studies from any location with Internet access. Most subjects have a LMS site into which you are automatically added as part of your enrolment into the subject.

The LMS can be accessed at: https://www.latrobe.edu.au/lms/login/ by using your Username and Password provided to you on your Statement of Account. If you are having trouble accessing the LMS or want to find out more about LMS, please see the website at: http://www.latrobe.edu.au/lms/

Library

The Library has many valuable physical and online learning resources that can help you with your study. On campus students should get to know the physical Library environment by going on a Library Tour. All students should get familiar with the Library website where online resources include:

LibGuides [http://latrobe.libguides.com/index.php] – providing specific discipline and subject guides;

LibSkills [http://latrobe.libguides.com/libskills] – to teach you library research and information literacy skills;

LibChat [http://www.lib.latrobe.edu.au/] - a library discussion forum allowing you to chat with a Librarian;

Academic Referencing Modules [http://latrobe.libguides.com/referencingmodules] – to assist you to understand specific referencing styles;

Academic Referencing Tool [http://www.lib.latrobe.edu.au/referencingtool/non-flash/index.php] – providing detailed referencing examples; and,

Assignment Calculator [http://www.latrobe.edu.au/library/assignment-thesis-support] – to assist you in time managing your assignments and submitting on time.

Student Support Services

If you have special needs due to disability or other factors the Equality and Diversity Centre can provide advice and support. This Centre can be contacted by telephone on (03) 9479 2900 (Melbourne); (03) 5444 7410 (Bendigo); (02) 6024 9628 (Albury-Wodonga); National Relay

Service Deaf and Hearing Impaired: T: 133677 (within Australia only). Email: Equality@latrobe.edu.au or refer to the website at:

http://www.latrobe.edu.au/equality/.

Peer Learning Advisers

Peer Learning Advisers (PLAs) are successful and experienced students who are trained to assist fellow students. PLAs are located in the library and can assist students with a range of inquiries. For more information refer to the website at: http://www.latrobe.edu.au/library/help-and-training/ask-a-pla?src=stu

Assessment and Feedback Details

Assessment Task Due Date % SILOs Assessed

Tutorial participation and attendance Throughout semester 10% 1 to 6

Submission Details

During weekly tutorials

Grading Criteria and Feedback

The tutor will assess your level of participation based on evidence of coming to class prepared and actively contributing to in-class discussion.

Description of Task

Students will be graded on the basis of not only attending tutorials but also on participating in class discussions.

Assessment Task Due Date % SILOs Assessed

Weekly Online Quiz Throughout Semester 10% 1 to 6

Submission Details

Complete Multiple Choice online quiz before attending tutorial

Grading Criteria and Feedback

Grades depend on number of correct answers

Description of Task

Students will need to answer a set of multiple choice questions on LMS by the end of each week (by midnight of each Sunday)

Assessment Task Due Date % SILOs Assessed

Mid-semester test Week commencing 7 September 2015 10% 1, 2, 4, 5

Submission Details

Complete multiple choice test during tutorial times

Grading Criteria and Feedback

Grades depend on number of correct answers

Answer 20 multiple choice that may be quantitative or qualitative

Answer questions based on material covered in weeks 1-7

Assessment Task Due Date % SILOs Assessed

Final Examination After 26 October 2015 70% 1 to 6

Submission Details

Submit at official examination centre

Grading Criteria and Feedback

University standard i.e. Above 80 for an A etc.

Description of Task

Provide answers for Quantitative and Qualitative questions