EFN415 Security Analysis and Portfolio Management
To view more information for this unit, select Unit Outline from the list below. Please note the teaching period for which the Unit Outline is relevant.
| Unit code: | EFN415 |
|---|---|
| Prerequisite(s): | EFN406 |
| Antirequisite(s): | EFN429 |
| Equivalent(s): | EFX415 |
| Credit points: | 12 |
| Timetable | Details in HiQ, if available |
| Availabilities |
|
| Domestic tuition unit fee | $4,416 |
| International unit fee | $4,944 |
Unit Outline: Semester 1 2025, Gardens Point, Internal
| Unit code: | EFN415 |
|---|---|
| Credit points: | 12 |
| Pre-requisite: | EFN406 |
| Equivalent: | EFX415 |
| Anti-requisite: | EFN429 |
| Coordinator: | Daniel Smith | d4.smith@qut.edu.au |
Overview
This developmental unit extends the knowledge and skill base of all finance students, drawing particularly on the earlier unit EFN406. This unit focuses 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:
- Apply knowledge of the theoretical foundations underlying security analysis and portfolio management and of the assumptions underlying various investment strategiesRelates to: PG Business Capabilities: KS (1.1)
- Employ a fundamental analysis approach in the valuation of stocks
- Apply knowledge of the issues involved in bond and equity portfolio management to inform analysis and decision making
- 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
- Apply teamwork knowledge and skills for effective collaboration and demonstrate effective written communication skills
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 integrated and advanced discipline and professional practice knowledge, including knowledge of relevant research principles and methods.
1.2 Apply technical, technological and technical research skills to organise and interpret discipline knowledge, including theory and practice, to investigate business issues.
Higher Order Thinking Skills (HO)
2.1 Critically investigate real world business issues and problems drawing on analysis, evaluation and synthesis of discipline knowledge, including theory and practice.
2.2 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.
Professional Communication (PC)
3.1 Use information literacy skills and communicate effectively and professionally in written forms and using media appropriate for diverse purposes, contexts and audiences.
3.2 Use information literacy skills and communicate effectively and professionally in oral forms appropriate for diverse purposes, contexts and audiences.
Teamwork & Self (TS)
4.1 Exercise self-reflection and accountability in applying knowledge and skills for own learning and effective practice.
4.2 Apply teamwork knowledge and skills for effective collaboration across a range of complex activities and contexts.
Social, Ethical & Global Understanding (SE)
5.1 Demonstrate and apply knowledge of ethical and legal principles and practices of business in critically analysing and effectively responding to complex business issues.
5.2 Demonstrate and apply knowledge of socially responsible behaviour in analysing and addressing business issues and critically reflect on the responsibilities and impacts of organisations in national and international business contexts.
Learning Approaches
Lectures and tutorials are interactive forums where students develop strong communication and reasoning skills as well as quantitative analysis skills. Students 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 students' teamwork skills and also foster peer learning opportunities. In accordance with QUT policy, all units are to be subject to Criterion Referenced Assessment (CRA). The unit coordinator will provide students with further details regarding CRA during the course of the semester during class and on the unit's Canvas site.
COVID-19 restrictions may require changes to the planned Learning Approaches described here. Students should refer to the unit Canvas site for the latest information.
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
The project involves application of investment principles and will evaluate the research and analytical skills you will learn in this unit. Project preparation involves individual completion of Bloomberg Financial Markets (BMC) e-learning modules on economic indicators, equities and bonds (10%) and are due between weeks 4 and 6. The group project report, including teamwork component is due in week 8 (40%).
This assignment is eligible for the 48-hour late submission period and assignment extensions.
Formative or Summative: Formative and Summative
Business Capabilities (AoL goals): KS (1.1, 1.2), HO (2.1, 2.2), PC (3.1), TS (4.2)
Assessment: Examination (Written)
The final exam will cover all topics except equity valuation. The final paper will consist of calculation and short answer questions.
Formative or Summative: Summative
Business Capabilities (AoL goals): KS (1.1, 1.2), HO (2.1)
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 lectures or tutorials in this unit. You should, however, familiarise yourself with evacuation procedures operating in the buildings in which you attend classes and take the time to
view the Emergency video.
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, ULO4, Project, Examination (Written)
HO (2.2): Independent Judgement and Decision-Making
Relates to: ULO3, ULO4, Project
KS (1.1): Discipline and Professional Practice Knowledge
Relates to: ULO1, ULO3, Project, Examination (Written)
KS (1.2): Technical, Technological and Research Skills
Relates to: ULO2, ULO4, Project, Examination (Written)
PC (3.1): Professional Communication (Written)
TS (4.2): Teamwork Knowledge and Skills
Course Learning Outcomes
This unit is designed to support your development of the following course/study area learning outcomes.BS11 Master of Business
- Demonstrate and apply integrated and advanced discipline and professional practice knowledge, including knowledge of relevant research principles and methods.
Relates to: ULO1, ULO3 - Apply technical, technological and technical research skills to organise and interpret discipline knowledge, including theory and practice, to investigate business issues.
Relates to: ULO2, ULO4 - 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, ULO4 - 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: ULO3, ULO4 - 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 - Apply teamwork knowledge and skills for effective collaboration across a range of complex activities and contexts.
Relates to: ULO5
Unit Outline: Semester 1 2025, Online
| Unit code: | EFN415 |
|---|---|
| Credit points: | 12 |
| Pre-requisite: | EFN406 |
| Equivalent: | EFX415 |
| Anti-requisite: | EFN429 |
Overview
This developmental unit extends the knowledge and skill base of all finance students, drawing particularly on the earlier unit EFN406. This unit focuses 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:
- Apply knowledge of the theoretical foundations underlying security analysis and portfolio management and of the assumptions underlying various investment strategiesRelates to: PG Business Capabilities: KS (1.1)
- Employ a fundamental analysis approach in the valuation of stocks
- Apply knowledge of the issues involved in bond and equity portfolio management to inform analysis and decision making
- 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
- Apply teamwork knowledge and skills for effective collaboration and demonstrate effective written communication skills
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 integrated and advanced discipline and professional practice knowledge, including knowledge of relevant research principles and methods.
1.2 Apply technical, technological and technical research skills to organise and interpret discipline knowledge, including theory and practice, to investigate business issues.
Higher Order Thinking Skills (HO)
2.1 Critically investigate real world business issues and problems drawing on analysis, evaluation and synthesis of discipline knowledge, including theory and practice.
2.2 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.
Professional Communication (PC)
3.1 Use information literacy skills and communicate effectively and professionally in written forms and using media appropriate for diverse purposes, contexts and audiences.
3.2 Use information literacy skills and communicate effectively and professionally in oral forms appropriate for diverse purposes, contexts and audiences.
Teamwork & Self (TS)
4.1 Exercise self-reflection and accountability in applying knowledge and skills for own learning and effective practice.
4.2 Apply teamwork knowledge and skills for effective collaboration across a range of complex activities and contexts.
Social, Ethical & Global Understanding (SE)
5.1 Demonstrate and apply knowledge of ethical and legal principles and practices of business in critically analysing and effectively responding to complex business issues.
5.2 Demonstrate and apply knowledge of socially responsible behaviour in analysing and addressing business issues and critically reflect on the responsibilities and impacts of organisations in national and international business contexts.
Learning Approaches
Lectures and tutorials are interactive forums where students develop strong communication and reasoning skills as well as quantitative analysis skills. Students 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 students' teamwork skills and also foster peer learning opportunities. In accordance with QUT policy, all units are to be subject to Criterion Referenced Assessment (CRA). The unit coordinator will provide students with further details regarding CRA during the course of the semester during class and on the unit's Canvas site.
COVID-19 restrictions may require changes to the planned Learning Approaches described here. Students should refer to the unit Canvas site for the latest information.
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
The project involves application of investment principles and will evaluate the research and analytical skills you will learn in this unit. Project preparation involves individual completion of Bloomberg Financial Markets (BMC) e-learning modules on economic indicators, equities and bonds (10%) and are due between weeks 4 and 6. The group project report, including teamwork component is due in week 8 (40%).
This assignment is eligible for the 48-hour late submission period and assignment extensions.
Formative or Summative: Formative and Summative
Business Capabilities (AoL goals): KS (1.1, 1.2), HO (2.1, 2.2), PC (3.1), TS (4.2)
Assessment: Examination (Written)
The final exam will cover all topics except equity valuation. The final paper will consist of calculation and short answer questions.
Formative or Summative: Summative
Business Capabilities (AoL goals): KS (1.1, 1.2), HO (2.1)
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 lectures or tutorials in this unit. You should, however, familiarise yourself with evacuation procedures operating in the buildings in which you attend classes and take the time to
view the Emergency video.
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, ULO4, Project, Examination (Written)
HO (2.2): Independent Judgement and Decision-Making
Relates to: ULO3, ULO4, Project
KS (1.1): Discipline and Professional Practice Knowledge
Relates to: ULO1, ULO3, Project, Examination (Written)
KS (1.2): Technical, Technological and Research Skills
Relates to: ULO2, ULO4, Project, Examination (Written)
PC (3.1): Professional Communication (Written)
TS (4.2): Teamwork Knowledge and Skills
Course Learning Outcomes
This unit is designed to support your development of the following course/study area learning outcomes.BS11 Master of Business
- Demonstrate and apply integrated and advanced discipline and professional practice knowledge, including knowledge of relevant research principles and methods.
Relates to: ULO1, ULO3 - Apply technical, technological and technical research skills to organise and interpret discipline knowledge, including theory and practice, to investigate business issues.
Relates to: ULO2, ULO4 - 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, ULO4 - 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: ULO3, ULO4 - 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 - Apply teamwork knowledge and skills for effective collaboration across a range of complex activities and contexts.
Relates to: ULO5