EFN415 Security Analysis and Portfolio Management


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Unit Outline: Semester 1 2027, Gardens Point, Internal

Unit code:EFN415
Credit points:12
Pre-requisite:EFN406 or BSN456 (EFN406 or BSN456 can be undertaken concurrent to EFN415)
Equivalent:EFX415
Anti-requisite:EFN429
Coordinator:Daniel Smith | d4.smith@qut.edu.au
Disclaimer - Offer of some units is subject to viability, and information in these Unit Outlines is subject to change prior to commencement of the teaching period.

Overview

This unit extends your financial knowledge and skills by focusing on the theories and techniques found in security analysis and investment management which have a profound effect on professional behaviour and practice in the real world. For example, fund managers must understand the needs of their clients, design portfolios consisting of different assets to suit those needs, and ensure the returns from the funds and the associated risk are as per expectations. The required knowledge and skills for effective practice can mean the difference between the success and failure of any type of investment portfolio.

Learning Outcomes

On successful completion of this unit you will be able to:

  1. Apply knowledge of the theoretical foundations underlying security analysis and portfolio management and of the assumptions underlying various investment strategies. [KS 1.1]
  2. Employ a fundamental analysis approach in the valuation of stocks. [ KS 1.2, HO 2.1, 2.2]
  3. Apply knowledge of the issues involved in bond and equity portfolio management to inform analysis and decision making. [KS 1.1, HO 2.1, 2.2]
  4. Use a number of techniques to evaluate portfolio performance and apply knowledge of the role of derivatives in managing portfolio risk to make informed analysis and decisions. [HO 2.2]
  5. Apply teamwork knowledge and skills for effective collaboration and demonstrate effective communication skills. [PC 3.1, 3.2 TS 4.2]

Content

Topics covered in this unit include:

  • Portfolio Analysis
  • Asset Pricing Models
  • Market Efficiency
  • Equity Valuation
  • Bond Valuation and Yield Curve
  • Bond Portfolio Management
  • Project Work
  • Performance Evaluation and Attribution Analysis
  • Portfolio Risk Management

QUT Business Capabilities (Postgraduate)

The content and assessment in this unit are aligned to a selection of the following set of QUT Business Capabilities, also known as Assurance of Learning Goals (AoLs). Developing these capabilities will assist you to meet the desired graduate outcomes set at QUT and equip you with the knowledge and skills to succeed in your chosen career.

Knowledge & Technical Skills (KS)
1.1 Demonstrate and apply advanced, integrated discipline and professional practice knowledge, including relevant research principles and methods, to address complex and evolving business challenges.
1.2 Leverage digital technologies, data-driven tools, technical and research skills to organise, interpret and extend discipline and professional practice knowledge to investigate digitally enhanced business environments. 

Higher Order Thinking Skills (HO)
2.1 Critically investigate complex, real-world business problems by analysing, evaluating, and synthesising discipline and professional practice knowledge.
2.2 Exercise creativity and intellectual independence and make evidence-based decisions and judgements in planning, designing, and executing strategic responses to address real world business challenges.

Professional Communication (PC)
3.1 Use information and digital literacy skills to communicate effectively and professionally in written forms, using appropriate technologies and media for diverse purposes, audiences, and business contexts.
3.2 Use information and digital literacy skills to communicate effectively and professionally in oral forms, using appropriate technologies and media for diverse purposes, audiences, and business contexts.

Teamwork & Self (TS)
4.1 Exercise self- reflection and accountability in applying knowledge and skills to support continuous learning, adaptability and effective professional growth.
4.2 Apply collaborative capabilities to work effectively in diverse teams and across complex, interdisciplinary business environments.

Social, Ethical & Global Understanding (SE)
5.1 Demonstrate ethical reasoning and apply legal and governance principles to critically evaluate and respond to complex business decisions and practices.
5.2 Apply socially responsible and sustainability-focused thinking to analyse business issues and reflect on the broader impact of organisations in national and global contexts.

Learning Approaches

Lectures and tutorials are interactive forums where students develop strong communication and reasoning skills as well as quantitative analysis skills. You also attend computer lab-based workshops and complete e-learning modules to build the research, analysis and technical skills required to undertake the valuation project assessment. The unit also provides significant scope for activities to develop your teamwork skills and fosters peer learning opportunities. In accordance with QUT policy, all units are to be subject to Criterion Referenced Assessment (CRA). The unit coordinator will provide further details regarding on the unit's Canvas site.

Feedback on Learning and Assessment

Students will receive feedback in various forms throughout the semester which may include:

  • Informal: worked examples, such as verbal feedback in class, personal consultation
  • Formal: in writing, such as checklists (e.g. criteria sheets), written commentary
  • Direct: to individual students, either in written form or in consultation
  • Indirect: to the whole class

Assessment

Overview

The assessment in this unit aims to support your achievement of the unit learning outcomes and course assurance of learning goals. The assessment has been designed in order to allow you to:

  • receive feedback on your learning as you progress toward the development of knowledge, understanding, skills and attitudes (formative assessment);
  • demonstrate your learning in order to achieve a final grade (summative assessment).

Unit Grading Scheme

7- point scale

Assessment Tasks

Assessment: Project

This group project involves application of investment principles and will evaluate the research and analytical skills you will learn in this unit.

Part A: Project preparation involves individual completion of Bloomberg Financial Markets (BMC) e-learning modules on economic indicators, equities and bonds which are due between weeks 4 and 6.

Part B: You will work in a group on a project report due in week 8. In your tutorial, each group member will present on aspects of the report relating to their contribution.  

Part A and Part B group project report are eligible for the 48-hour late submission period and assignment extensions. 

The oral in tutorial presentations are not eligible for the 48-hour late submission period and assignment extensions. 

The ethical and responsible use of generative artificial intelligence (GenAI) tools is authorised in this assessment. See the relevant assessment details in Canvas for specific guidelines.

Formative or Summative: Formative and Summative

Business Capabilities (AoL goals): KS (1.1, 1.2), HO (2.1, 2.2), PC (3.1, 3.2), TS (4.2)

Weight: 50
Length: 6 hours (BMC modules) + 5,000 words (project report)
Individual/Group: Individual and group
Due (indicative): Weeks 4-6 and 8
Related Unit learning outcomes: 1, 2, 5

Assessment: Final Examination

The final exam will cover all topics except equity valuation. The final paper will consist of calculation and short answer questions.

The use of generative artificial intelligence (GenAI) tools is prohibited during this assessment.

This invigilated examination requires attendance on campus or at an assessment centre, regardless of your attendance mode for the unit.

This assessment item is Verified Identity Assessment. Requirements are provided on the Unit Canvas site.

Formative or Summative: Summative

Business Capabilities (AoL goals): KS (1.1, 1.2), HO (2.1), TS (4.2)

Weight: 50
Individual/Group: Individual
Due (indicative): During central examination period
Central exam duration: 2:10 - Including 10 minute perusal
Related Unit learning outcomes: 1, 2, 3, 4, 5

Academic Integrity

Academic integrity is a commitment to undertaking academic work and assessment in a manner that is ethical, fair, honest, respectful and accountable.

The Academic Integrity Policy sets out the range of conduct that can be a failure to maintain the standards of academic integrity. This includes, cheating in exams, plagiarism, self-plagiarism, collusion and contract cheating. It also includes providing fraudulent or altered documentation in support of an academic concession application, for example an assignment extension or a deferred exam.

You are encouraged to make use of QUT’s learning support services, resources and tools to assure the academic integrity of your assessment. This includes the use of text matching software that may be available to assist with self-assessing your academic integrity as part of the assessment submission process.

Breaching QUT’s Academic Integrity Policy or engaging in conduct that may defeat or compromise the purpose of assessment can lead to a finding of student misconduct (Code of Conduct – Student) and result in the imposition of penalties under the Management of Student Misconduct Policy, ranging from a grade reduction to exclusion from QUT.

Resources

Resource Materials

Prescribed text(s)

Prescribed Text
Bodie, Z.,  Kane, A., and Markus, A. (2022). Essentials of Investments (12th edition) ) McGraw Hill

This text will form the core reading for most topics. A number of journal article and media clippings will provide supplementary reading.

Bloomberg Market Concepts (BMC) e-learning modules are required to be completed by students. This is an online resource for which free students logins would be arranged by the instructor. Students will need to register for BMC with a unique class code that will be provided in week 2.

Reference book(s)

Elton. E., Gruber, M., Brown. S. and Goetzmann, W. (2014). Modern Portfolio Theory and Investment Analysis, 9th Edition, John Wiley & Sons.

Other

There are many other publications found in the library. For articles (newspaper, research, etc.), and databases (Morningstar, Aspect etc) the library's electronic resource network is most helpful. See the Information Desk for details. Bloomberg data can be accessed from the terminal located at the Securities Dealing Room in the School of Economics and Finance. Additional reference material can also be found at the unit's Canvas site: http://Canvas.qut.edu.au.

Risk Assessment Statement

There are no out-of-the-ordinary risks associated with learning and teaching activities in this unit.

Standards/Competencies

This unit is designed to support your development of the following standards\competencies.

QUT Business Capabilities (Postgraduate)

HO (2.1): Critical Analysis

Relates to: ULO2, ULO3, Project, Final Examination

HO (2.2): Independent Judgement and Decision-Making

Relates to: ULO2, ULO3, ULO4, Project

KS (1.1): Discipline and Professional Practice Knowledge

Relates to: ULO1, ULO3, Project, Final Examination

KS (1.2): Technical, Technological and Research Skills

Relates to: ULO2, Project, Final Examination

PC (3.1): Professional Communication (Written)

Relates to: ULO5, Project

TS (4.2): Teamwork Knowledge and Skills

Relates to: ULO5, Project, Final Examination

QUT Business Capabilities (Postgraduate) 2027

HO (2.1): Critical Analysis

Relates to: ULO2, ULO3, Project, Final Examination

HO (2.2): Independent Judgement and Decision-Making

Relates to: ULO2, ULO3, ULO4, Project

KS (1.1): Discipline Knowledge

Relates to: ULO1, ULO3, Project, Final Examination

KS (1.2): Technical and Technological Skills

Relates to: ULO2, Project, Final Examination

PC (3.1): Professional Communication (Written)

Relates to: ULO5, Project

PC (3.2): Professional Communication (Oral)

Relates to: ULO5, Project

TS (4.2): Teamwork Knowledge and Skills

Relates to: ULO5, Project, Final Examination

Course Learning Outcomes

This unit is designed to support your development of the following course/study area learning outcomes.

BS11 Master of Business

  1. Demonstrate and apply integrated and advanced discipline and professional practice knowledge, including knowledge of relevant research principles and methods.
    Relates to: ULO1, ULO3, Project, Final Examination
  2. Apply technical, technological and technical research skills to organise and interpret discipline knowledge, including theory and practice, to investigate business issues.
    Relates to: ULO2, Project, Final Examination
  3. Critically investigate real world business issues and problems drawing on analysis, evaluation and synthesis of discipline knowledge, including theory and practice.
    Relates to: ULO2, ULO3, Project, Final Examination
  4. Exercise creativity and intellectual independence and make informed decisions and judgements in planning, designing, and executing strategic and research-based responses to address real world issues and problems.
    Relates to: ULO2, ULO3, ULO4, Project
  5. Use information literacy skills and communicate effectively and professionally in written forms and using media appropriate for diverse purposes, contexts and audiences.
    Relates to: ULO5, Project
  6. Apply teamwork knowledge and skills for effective collaboration across a range of complex activities and contexts.
    Relates to: ULO5, Project, Final Examination

BS12 Master of Business

  1. Demonstrate and apply advanced, integrated discipline and professional practice knowledge, including relevant research principles and methods, to address complex and evolving business challenges.
    Relates to: ULO1, ULO3, Project, Final Examination
  2. Leverage digital technologies, data-driven tools, technical and research skills to organise, interpret and extend discipline and professional practice knowledge in digitally enhanced business environments.
    Relates to: ULO2, Project, Final Examination
  3. Critically investigate complex, real-world business problems by analysing, evaluating, and synthesising discipline and professional practice knowledge.
    Relates to: ULO2, ULO3, Project, Final Examination
  4. Exercise creativity and intellectual independence and make evidence-based decisions and judgements in planning, designing, and executing strategic responses to address real world business challenges.
    Relates to: ULO2, ULO3, ULO4, Project
  5. Use information and digital literacy skills to communicate effectively and professionally in written forms, using appropriate technologies and media for diverse purposes, audiences, and business contexts
    Relates to: ULO5, Project
  6. Use information and digital literacy skills to communicate effectively and professionally in oral forms, using appropriate technologies and media for diverse purposes, audiences, and business contexts.
    Relates to: ULO5, Project
  7. Apply collaborative capabilities to work effectively in diverse teams and across complex, interdisciplinary business environments.
    Relates to: ULO5, Project, Final Examination

BS68 Graduate Diploma in Business

  1. Apply advanced interdisciplinary knowledge, including relevant research principles and methods to understand and respond to professional challenges.
    Relates to: ULO1, ULO3, Project, Final Examination
  2. Apply technical, digital, and research skills to organise, interpret, and evaluate discipline knowledge and practice to investigate business issues in digitally enhanced environments.
    Relates to: ULO2, Project, Final Examination
  3. Critically investigate real-world business issues and challenges using analysis, evaluation, and synthesis of interdisciplinary knowledge, including theory and practice.
    Relates to: ULO2, ULO3, Project, Final Examination
  4. Exercise innovative thinking and intellectual independence to make informed decisions and judgements in planning evidence-based responses to complex and evolving business contexts.
    Relates to: ULO2, ULO3, ULO4, Project
  5. Use information literacy skills to communicate effectively in written forms and through appropriate digital media, tailored to diverse professional and organisational audiences.
    Relates to: ULO5, Project