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FIN2105 Portfolio Management

Semester 3, 2020 Online
Short Description: Portfolio Management
Units : 1
Faculty or Section : Faculty of Business, Education, Law and Arts
School or Department : School of Commerce
Student contribution band : Band 3
ASCED code : 081105 - Investment and Securities
Grading basis : Graded
Version produced : 20 September 2020


Pre-requisite: FIN1101 and FIN1103 and STA2300

Other requisites

Students are required to have access to a personal computer, e-mail capabilities and Internet access to UConnect. Current details of computer requirements can be found at


Increasingly, workers are responsible for their own saving and investing, usually through a superannuation fund. More generally, funds management is a large and growing part of the financial services sector. This course is designed to provide students with an introduction to the concepts and tools of modern portfolio management that are applied in this sector and may be applied by individuals taking responsibility for the management of their own savings. The course assumes some knowledge of finance and statistics.


The current trend in the funds management industry is away from security analysis (stock picking) and towards asset allocation (managing the balance of equities, bonds, cash etc). The latter, typically called portfolio management, is now more important than the former, typically called investment management. Portfolio management is important to both individuals who manage their own personal assets and managers who manage the assets of others. This course aims to cover the most crucial aspects of portfolio management. Coverage includes these topics: the construction of the portfolio, investment objectives and policies; the management of the portfolio including the selection of assets, the utilisation of modern portfolio methods and the revision of the portfolio; and the protection of the portfolio using derivatives. The course emphasises the analytical aspects of portfolio management and the decision making process to enable students to apply the established theories and models in the financial world.


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

  1. explicate the process of portfolio construction, management and protection;
  2. interpret and analyse data with professional literacy skills including numeracy;
  3. apply knowledge of how investments such as international securities, real assets and derivatives fit into a well-diversified portfolio;
  4. synthesise theory and practice to solve problems, to make ethical decisions and to think critically in the context of portfolio management;
  5. use initiative, creativity and judgement to construct, manage and protect a portfolio of financial investments;
  6. evaluate the performance of a portfolio.


Description Weighting(%)
1. Ethics in finance 10.00
2. Portfolio objectives and investment policy 5.00
3. Portfolio diversification 20.00
4. International diversification 10.00
5. Equities 10.00
6. Bonds 10.00
7. Real assets 5.00
8. Revising and rebalancing the equity and bond portfolios 10.00
9. Using derivatives in the portfolio 10.00
10. Performance evaluation 5.00
11. Issues in modern portfolio management 5.00

Text and materials required to be purchased or accessed

ALL textbooks and materials available to be purchased can be sourced from USQ's Online Bookshop (unless otherwise stated). (

Please contact us for alternative purchase options from USQ Bookshop. (

Reilly, F, Brown, K, Gunasingham, B, Lamba, A & Elston, F 2020, Investment analysis & portfolio management, Asia Pacific edn, Cengage Learning, South Melbourne, Victoria.

Reference materials

Reference materials are materials that, if accessed by students, may improve their knowledge and understanding of the material in the course and enrich their learning experience.
Brailsford, T, Heaney, R & Bilson, C 2015, Investments: concepts and applications, 5th edn, Cengage Learning, South Melbourne, Victoria.
Elton, EJ, Gruber, MJ, Brown, SJ & Goetzmann, WN 2014, Modern portfolio theory and investment analysis, 9th edn, Wiley, Hoboken, New Jersey.
Malkiel, BG 2019, A random walk down Wall Street: the time-tested strategy for successful investing, 12th edn, WW Norton, New York.
Strong, RA 2009, Portfolio construction, management, and protection, 5th edn, Cengage Learning, Mason, Ohio.
Vishwanath, S & Krishnamurti, C (eds) 2009, Investment management: a modern guide to security analysis and stock selection, Springer, Heidelberg.

Student workload expectations

Activity Hours
Directed Study 36.00
Independent Study 129.00

Assessment details

Description Marks out of Wtg (%) Due Date Notes
QUIZ 1 20 20 24 Dec 2020 (see note 1)
QUIZ 2 20 20 11 Feb 2021
EXAMINATION 60 60 End S3 (see note 2)

  1. The online computer-marked answer quiz, available through StudyDesk, will comprise multiple choice questions on a set of textbook chapters.
  2. This will be an open examination. The total working time for the examination is 2 hours. The examination date will be available via UConnect when the official examination timetable has been released.

Important assessment information

  1. Attendance requirements:
    Online: There are no attendance requirements for this course. However, it is the students' responsibility to study all material provided to them or required to be accessed by them to maximise their chance of meeting the objectives of the course and to be informed of course-related activities and administration.

    On-campus: It is the students' responsibility to attend and participate appropriately in all activities (such as lectures, tutorials, laboratories and practical work) scheduled for them, and to study all material provided to them or required to be accessed by them to maximise their chance of meeting the objectives of the course and to be informed of course-related activities and administration.

  2. Requirements for students to complete each assessment item satisfactorily:
    To satisfactorily complete an individual assessment item a student must achieve at least 50% of the marks. (Depending upon the requirements in Statement 4 below, students may not have to satisfactorily complete each assessment item to receive a passing grade in this course.)

  3. Penalties for late submission of required work:
    Students should refer to the Assessment Procedure (point 4.2.4)

  4. Requirements for student to be awarded a passing grade in the course:
    To be assured of receiving a passing grade a student must obtain at least 50% of the total weighted marks available for the course (i.e. the Primary Hurdle), and have satisfied the Secondary Hurdle (Supervised), i.e. the end of semester examination by achieving at least 40% of the weighted marks available for that assessment item.

    Supplementary assessment may be offered where a student has undertaken all of the required summative assessment items and has passed the Primary Hurdle but failed to satisfy the Secondary Hurdle (Supervised), or has satisfied the Secondary Hurdle (Supervised) but failed to achieve a passing Final Grade by 5% or less of the total weighted Marks.

    To be awarded a passing grade for a supplementary assessment item (if applicable), a student must achieve at least 50% of the available marks for the supplementary assessment item as per the Assessment Procedure (point 4.4.2).

  5. Method used to combine assessment results to attain final grade:
    The final grades for students will be assigned on the basis of the aggregate of the weighted marks obtained for each of the summative assessment items in the course.

  6. Examination information:
    This will be an open examination. Candidates may have access to any printed or written material and a calculator during the examination.

  7. Examination period when Deferred/Supplementary examinations will be held:
    Any Deferred or Supplementary examinations for this course will be held during the next examination period.

  8. University Student Policies:
    Students should read the USQ policies: Definitions, Assessment and Student Academic Misconduct to avoid actions that might contravene University policies and practices. These policies can be found at

Assessment notes

  1. Referencing in assignments:
    Harvard (AGPS) is the referencing system required in this course. Students should use Harvard (AGPS) style in their assignments to format details of the information sources they have cited in their work. The Harvard (AGPS) style to be used is defined by the USQ Library's referencing guide at

Date printed 20 September 2020