Subject details

At the completion of this subject students will be able to:

  1. apply the concepts of mean variance analysis and Portfolio Theory to select an optimal investment portfolio
  2. evaluate the theories and techniques of security analysis and apply these concepts to the selection and management of equity and fixed income security portfolios
  3. explain and apply techniques for diversifying risk and managing portfolio risk
  4. formulate investment strategies and risk management strategies using derivative securities
  5. evaluate the performance of an investment portfolio.
    • Introduction, Securities markets
    • Portfolio theory - Risk and return measurement
    • Portfolio theory - Efficient diversification
    • Capital market theory
    • Efficiency of securities markets, Bond Prices and Yields
    • Interest rate risk and bond portfolio management
    • Security analysis and stock valuation models
    • Options and options applications in portfolio management
    • Futures markets applications in portfolio management
    • Portfolio performance evaluation

You must have successfully completed the following subject(s) before starting this subject:

CUR-BAN23-Introduction to Finance Principles , or CUR-BAN25-Introduction to Financial Statement Analysis
and
CUR-BAN24-Introduction to Financial Instruments and Markets

Special requirements

No special requirements

This subject covers the essential theories and their application to the practice of security analysis and portfolio management. Concepts discussed include mean-variance analysis, portfolio optimisation, asset pricing theory, market efficiency, security analysis, fixed income portfolio management, portfolio risk management using derivatives and portfolio performance evaluation techniques. Students will also be provided with an awareness of the on-going developments, and controversies in this area of Finance.

Please Note: If it’s your first time studying a Curtin University subject you’ll need to complete their compulsory ‘Academic Integrity Program’. It only takes two hours to complete online, and provides you with vital information about studying with Curtin University. The Academic Integrity Program is compulsory, so if it’s not completed your subject grades will be withheld.

Find out more about the Academic Integrity module.

  • Assignment (20%)
  • Invigilated Exam (45%)
  • Mid-study period test (35%)

Textbook information is pending.

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