Investment Management

Subject FNCE90056 (2016)

Note: This is an archived Handbook entry from 2016.

Credit Points: 12.5
Level: 9 (Graduate/Postgraduate)
Dates & Locations:

This subject has the following teaching availabilities in 2016:

Semester 1, Parkville - Taught on campus.
Pre-teaching Period Start not applicable
Teaching Period 29-Feb-2016 to 29-May-2016
Assessment Period End 24-Jun-2016
Last date to Self-Enrol 11-Mar-2016
Census Date 31-Mar-2016
Last date to Withdraw without fail 06-May-2016

Semester 2, Parkville - Taught on campus.
Pre-teaching Period Start not applicable
Teaching Period 25-Jul-2016 to 23-Oct-2016
Assessment Period End 18-Nov-2016
Last date to Self-Enrol 05-Aug-2016
Census Date 31-Aug-2016
Last date to Withdraw without fail 23-Sep-2016

Timetable can be viewed here. For information about these dates, click here.
Time Commitment: Contact Hours: One 3-hour lecture per week
Total Time Commitment:

Estimated total time commitment of 120 hours per semester

Study Period Commencement:
Credit Points:
Not offered in 2016


Study Period Commencement:
Credit Points:
Semester 1, Semester 2


Recommended Background Knowledge:


Non Allowed Subjects:


Core Participation Requirements:

For the purposes of considering request for Reasonable Adjustments under the Disability Standards for Education (Cwth 2005), and Student Support and Engagement Policy, academic requirements for this subject are articulated in the Subject Overview, Learning Outcomes, Assessment and Generic Skills sections of this entry.

It is University policy to take all reasonable steps to minimise the impact of disability upon academic study, and reasonable adjustments will be made to enhance a student's participation in the University's programs. Students who feel their disability may impact on meeting the requirements of this subject are encouraged to discuss this matter with a Faculty Student Adviser and Student Equity and Disability Support:


Dr Zhen Shi, Prof Spencer Martin


Spencer Martin

Zhen Shi

Subject Overview:

This subject is designed to equip students with the tools necessary to enable them to make the core investment management decisions that managers face on a daily basis as well as the knowledge as to where they can find the information necessary to apply those tools. This subject is an introduction to investment analysis, with emphasis on equity securities and fixed income securities. The topics covered focus on issues fundamental to financial managers, money managers, risk managers, financial advisors and regulators. These topics include fundamental ideas in asset pricing; modern portfolio theory and its applications; equilibrium theories of asset pricing; portfolio performance evaluation; and key issues in the pricing and portfolio allocation of fixed income assets.

Learning Outcomes:

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

  • Discuss core concepts in investment management, including risk, return, risk premium and risk aversion;
  • Analyse the portfolio selection problem, with emphasis on the mean variance framework;
  • Explain the benefits of diversification and the main drivers of those benefits;
  • Critically evaluate alternative theories of asset pricing and their application in the valuation of securities;
  • Develop techniques to evaluate the performance of portfolio managers;
  • Analyse critical issues in the valuation of fixed income securities and the management of fixed income portfolios;
  • Critically evaluate the theories of the term structure of interest rates and their application to fixed income portfolio management.
  • Two 1-hour mid-semester examinations, the first examination held within weeks 4-6, the second examination held within weeks 8-10 (40% total);
  • A 3-hour end-of-semester examination (60%).
Prescribed Texts:

You will be advised of prescribed texts by your lecturer.

Breadth Options:

This subject is not available as a breadth subject.

Fees Information: Subject EFTSL, Level, Discipline & Census Date
Generic Skills:

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

  • High level of development: have an in-depth knowledge of financial markets; interpretation and analysis; critical and creative thinking; engagement in meaningful public discourse.
  • Moderate level of development: written communication; problem solving; synthesis of data and other information; evaluation of data and other information; receptiveness to alternative ideas; interpersonal and decision-making skills.
  • Some level of development: oral communication; collaborative learning; team work.
Related Course(s): Master of Accounting
Master of Management (Accounting and Finance)
Master of Management (Finance)
Master of Management (Finance)
Related Majors/Minors/Specialisations: 150 Point Master of Management (Finance)
Master of International Business electives

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