Fundamentals of Portfolio Management

This subject has the following teaching availabilities in 2015:

Estimated total time commitment of 120 hours per semester

This subject is only available to students enrolled in the Graduate Diploma in Finance, Postgraduate Diploma in Finance, the Master of Finance, and for students in the Master of Management who have completed FNCE90018 Corporate Financial Policy and FNCE90056 Investment Management.

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For the purposes of considering requests for Reasonable Adjustments under the Disability Standards for Education (Cwth 2005), and Students Experiencing Academic Disadvantage Policy, academic requirements for this subject are articulated in the Subject Description, Subject Objectives, Generic Skills and Assessment Requirements for this entry.

The University is dedicated to provide support to those with special requirements. Further details on the disability support scheme can be found at the Disability Liaison Unit website: http://www.services.unimelb.edu.au/disability/

Investment principles, philosophies and processes. Application of modern portfolio theory; capital asset pricing models; equity valuation models and interest rate theory in managing various types of investment portfolios containing cash; and fixed interest securities and equities both domestic and international. Students use investment software to solve practical problems.

On successful completion of this subject, students should be able to:

• Describe an investment process that is consistent with a given set of beliefs about the efficiency or inefficiency of financial markets;
• Use advanced applications of modern portfolio theory to design portfolios that are well aligned with investors' objectives;
• Apply different types of commercially available factor models to structure portfolios with desirable risk characteristics.

• 3000 word major project, Due after the conclusion of the teaching period, by no later than two weeks (30%)
• A 2-hour final examination, after the teaching period (70%)

You will be advised of prescribed texts by your lecturer.

This subject is not available as a breadth subject.

On successful completion of this subject, students should have improved the following generic skills:

• Oral communication
• Written communication
• Collaborative learning
• Problem solving
• Team work
• Statistical reasoning
• Application of theory to practice
• Interpretation and analysis
• Critical thinking
• Synthesis of data and other information
• Evaluation of data and other information
• Using computer software
• Accessing data and other information from a range of sources.