This course allows students to acquire and apply the skills needed to design investment portfolios. It covers duties to clients, types of investment products, explores links between investment risk and return, introduces tools for use in portfolio construction, brings in analysis of fixed income products and introduces techniques to evaluate past investment performance.

Learning Outcomes

Upon successful completion, students will have the knowledge and skills to:

1. Demonstrate a detailed understanding of core investments theory;
2. Demonstrate a thorough knowledge of the issues associated with the application of investments theory in a practical setting;
3. Work effectively in group environments; and
4. Effectively communicate the results of empirical research.

Research-Led Teaching

Some topics driven by the lecturer’s research experience. Sharing with students the latest research findings or methods in relevant research area.

Examination Material or equipment

Non-programmable calculator

Required Resources

Textbook: Bodie, Z. Kane, A. and Marcus, A., 2020, Investments, 12th Edition, Mc-Graw Hill/Irwin, New York;

The book can be purchased from the on-campus bookshop, with a small number of copies also available for a 2-hour loan in the reserve loan section of the ANU Library. The E-book is available in the ANU library electronic resource.

Recommended Resources

ANU outlines recommended student system requirements to ensure you are able to participate fully in your learning. Other information is also available about the various Learning Platforms you may use.

Staff Feedback

Students will be given feedback in the following forms in this course:

• written comments
• verbal comments
• feedback to whole class, groups, individuals, focus group etc

Student Feedback

ANU is committed to the demonstration of educational excellence and regularly seeks feedback from students. Students are encouraged to offer feedback directly to their Course Convener or through their College and Course representatives (if applicable). Feedback can also be provided to Course Conveners and teachers via the Student Experience of Learning & Teaching (SELT) feedback program. SELT surveys are confidential and also provide the Colleges and ANU Executive with opportunities to recognise excellent teaching, and opportunities for improvement.

Class Schedule

Week/Session	Summary of Activities	Assessment
1	Introduction
2	Risk, Return, and Historical Data
3	Preferences, Risky Assets, and Building Portfolios
4	Index Models	In-class test 1
5	The Capital Asset Pricing Model
6	Arbitrage Pricing and Multifactor Models
7	Efficient Markets	In-class test 2
8	Technical Analysis and Behavioral Finance	Assignment submission due
9	Bond Pricing and Yields
10	Managing Bond Portfolios and the Term Structure of Interest Rates	In-class test 3
11	Portfolio Evaluation
12	Alternative Investments, Hedge Funds, and Review

Tutorial Registration

ANU utilizes MyTimetable to enable students to view the timetable for their enrolled courses, browse, and then self-allocate to small teaching activities/tutorials so they can better plan their time. Find out more on the Timetable webpage.

Assessment Summary

Assessment task	Value	Due Date	Return of assessment	Learning Outcomes
In-class test 1	5 %	11/03/2025	25/03/2025	1,2
In-class test 2	5 %	15/04/2025	29/04/2025	1,2
In-class test 3	5 %	06/05/2025	20/05/2025	1,2
Assignment	25 %	22/04/2025	06/05/2025	1,2,3,4
Final Exam	60 %	29/05/2025	26/06/2025	1,2,4

* If the Due Date and Return of Assessment date are blank, see the Assessment Tab for specific Assessment Task details

Policies

ANU has educational policies, procedures and guidelines , which are designed to ensure that staff and students are aware of the University’s academic standards, and implement them. Students are expected to have read the Academic Integrity Rule before the commencement of their course. Other key policies and guidelines include:

• Academic Integrity Policy and Procedure
• Student Assessment (Coursework) Policy and Procedure
• Extenuating Circumstances Application
• Student Surveys and Evaluations
• Deferred Examinations
• Student Complaint Resolution Policy and Procedure
• Code of practice for teaching and learning

Assessment Requirements

The ANU is using Turnitin to enhance student citation and referencing techniques, and to assess assignment submissions as a component of the University's approach to managing Academic Integrity. For additional information regarding Turnitin please visit the Academic Skills website. In rare cases where online submission using Turnitin software is not technically possible; or where not using Turnitin software has been justified by the Course Convener and approved by the Associate Dean (Education) on the basis of the teaching model being employed; students shall submit assessment online via ‘Wattle’ outside of Turnitin, or failing that in hard copy, or through a combination of submission methods as approved by the Associate Dean (Education). The submission method is detailed below.

Moderation of Assessment

Marks that are allocated during Semester are to be considered provisional until formalised by the College examiners meeting at the end of each Semester. If appropriate, some moderation of marks might be applied prior to final results being released.

Examination(s)

See above. Further information about exam structure will be provided once the exams have been timetabled.

Assessment Task 1

In-class test 1

• The in-class test will take place on Tuesdays at the beginning of the class. Please be on time.
• The in-class test will be a closed-book test with no formula sheet provided.
• The in-class test will be 15 minutes in length. The in-class test is compulsory.
• The in-class test will include a mixture of theory and practical questions related to the materials covered in previous weeks.
• The in-class test will count towards 5% of students' final course grades.
• The in-class test provides good feedback on your progress, and worked solutions will be provided after the test to assist with revision.
• The test scripts will be returned to students within two weeks. The grades will be uploaded to Wattle.
• Further details of the test structure will be provided as the test date approaches.

Assessment Task 2

In-class test 2

• The in-class test will take place on Tuesdays at the beginning of the class. Please be on time.
• The in-class test will be a closed-book test with no formula sheet provided.
• The in-class test will be 15 minutes in length. The in-class test is compulsory.
• The in-class test will include a mixture of theory and practical questions related to the materials covered in previous weeks.
• The in-class test will count towards 5% of students' final course grades.
• The in-class test provides good feedback on your progress, and worked solutions will be provided after the test to assist with revision.
• The test scripts will be returned to students within two weeks. The grades will be uploaded to Wattle.
• Further details of the test structure will be provided as the test date approaches.

Assessment Task 3

In-class test 3

• The in-class test will take place on Tuesdays at the beginning of the class. Please be on time.
• The in-class test will be a closed-book test with no formula sheet provided.
• The in-class test will be 15 minutes in length. The in-class test is compulsory.
• The in-class test will include a mixture of theory and practical questions related to the materials covered in previous weeks.
• The in-class test will count towards 5% of students' final course grades.
• The in-class test provides good feedback on your progress, and worked solutions will be provided after the test to assist with revision.
• The test scripts will be returned to students within two weeks. The grades will be uploaded to Wattle.
• Further details of the test structure will be provided as the test date approaches.

Assessment Task 4

Assignment

• This assignment will count towards 25% of students’ overall grades.
• The assignment will consist of two parts of unequal value, each comprising multiple questions.
• The assignment will involve students analyzing financial data and interpreting their results in a written report. The data required for this assignment will be available on Wattle.
• Students must attempt the assignment in groups comprising a maximum of three people.
• Each group must submit a single copy of its assignment—one submission per group only. The front of each assignment must include a coversheet listing the names and ANU ID numbers of each contributor. Each group must submit the Excel spreadsheet and the Word/PDF report. All calculations (numerical work) must be done in Excel. No other statistical packages are accepted.
• Assignments submitted late will not be accepted. Students who submit an assignment after the due date will receive a zero mark. Extensions will only be considered for documented medical reasons or other extenuating circumstances and must be agreed upon with the lecturer before the due date.

Assessment Task 5

Final Exam

• The final exam will be a closed-book test. No formula sheet will be provided. Digital or paper dictionaries and electronic devices are not allowed. Non-programmable calculators are allowed.
• The final exam will be 3 hours long, with an additional 15 minutes of reading time.
• The final exam is compulsory.
• The final exam will comprise a mixture of theory and practical questions related to materials covered throughout the semester. It will count towards 60% of students’ final course grades.
• Further details of the exam structure will be provided as the exam date approaches.

Academic Integrity

Academic integrity is a core part of the ANU culture as a community of scholars. The University’s students are an integral part of that community. The academic integrity principle commits all students to engage in academic work in ways that are consistent with, and actively support, academic integrity, and to uphold this commitment by behaving honestly, responsibly and ethically, and with respect and fairness, in scholarly practice.

The University expects all staff and students to be familiar with the academic integrity principle, the Academic Integrity Rule 2021, the Policy: Student Academic Integrity and Procedure: Student Academic Integrity, and to uphold high standards of academic integrity to ensure the quality and value of our qualifications.

The Academic Integrity Rule 2021 is a legal document that the University uses to promote academic integrity, and manage breaches of the academic integrity principle. The Policy and Procedure support the Rule by outlining overarching principles, responsibilities and processes. The Academic Integrity Rule 2021 commences on 1 December 2021 and applies to courses commencing on or after that date, as well as to research conduct occurring on or after that date. Prior to this, the Academic Misconduct Rule 2015 applies.

 

The University commits to assisting all students to understand how to engage in academic work in ways that are consistent with, and actively support academic integrity. All coursework students must complete the online Academic Integrity Module (Epigeum), and Higher Degree Research (HDR) students are required to complete research integrity training. The Academic Integrity website provides information about services available to assist students with their assignments, examinations and other learning activities, as well as understanding and upholding academic integrity.

Online Submission

You will be required to electronically sign a declaration as part of the submission of your assignment. Please keep a copy of the assignment for your records. Unless an exemption has been approved by the Associate Dean (Education) submission must be through Turnitin.

Hardcopy Submission

For some forms of assessment (hand written assignments, art works, laboratory notes, etc.) hard copy submission is appropriate when approved by the Associate Dean (Education). Hard copy submissions must utilise the Assignment Cover Sheet. Please keep a copy of tasks completed for your records.

Late Submission

Individual assessment tasks may or may not allow for late submission. Policy regarding late submission is detailed below:

• Late submission not permitted. If submission of assessment tasks without an extension after the due date is not permitted, a mark of 0 will be awarded.
• Late submission permitted. Late submission of assessment tasks without an extension are penalised at the rate of 5% of the possible marks available per working day or part thereof. Late submission of assessment tasks is not accepted after 10 working days after the due date, or on or after the date specified in the course outline for the return of the assessment item. Late submission is not accepted for take-home examinations.

Referencing Requirements

The Academic Skills website has information to assist you with your writing and assessments. The website includes information about Academic Integrity including referencing requirements for different disciplines. There is also information on Plagiarism and different ways to use source material. Any use of artificial intelligence must be properly referenced. Failure to properly cite use of Generative AI will be considered a breach of academic integrity.

Extensions and Penalties

Extensions and late submission of assessment pieces are covered by the Student Assessment (Coursework) Policy and Procedure. Extensions may be granted for assessment pieces that are not examinations or take-home examinations. If you need an extension, you must request an extension in writing on or before the due date. If you have documented and appropriate medical evidence that demonstrates you were not able to request an extension on or before the due date, you may be able to request it after the due date.

Privacy Notice

The ANU has made a number of third party, online, databases available for students to use. Use of each online database is conditional on student end users first agreeing to the database licensor’s terms of service and/or privacy policy. Students should read these carefully. In some cases student end users will be required to register an account with the database licensor and submit personal information, including their: first name; last name; ANU email address; and other information.
In cases where student end users are asked to submit ‘content’ to a database, such as an assignment or short answers, the database licensor may only use the student’s ‘content’ in accordance with the terms of service – including any (copyright) licence the student grants to the database licensor. Any personal information or content a student submits may be stored by the licensor, potentially offshore, and will be used to process the database service in accordance with the licensors terms of service and/or privacy policy.
If any student chooses not to agree to the database licensor’s terms of service or privacy policy, the student will not be able to access and use the database. In these circumstances students should contact their lecturer to enquire about alternative arrangements that are available.

Distribution of grades policy

Academic Quality Assurance Committee monitors the performance of students, including attrition, further study and employment rates and grade distribution, and College reports on quality assurance processes for assessment activities, including alignment with national and international disciplinary and interdisciplinary standards, as well as qualification type learning outcomes.

Since first semester 1994, ANU uses a grading scale for all courses. This grading scale is used by all academic areas of the University.

Support for students

The University offers students support through several different services. You may contact the services listed below directly or seek advice from your Course Convener, Student Administrators, or your College and Course representatives (if applicable).

• ANU Health, safety & wellbeing for medical services, counselling, mental health and spiritual support
• ANU Accessibility for students with a disability or ongoing or chronic illness
• ANU Dean of Students for confidential, impartial advice and help to resolve problems between students and the academic or administrative areas of the University
• ANU Academic Skills supports you make your own decisions about how you learn and manage your workload.
• ANU Counselling promotes, supports and enhances mental health and wellbeing within the University student community.
• ANUSA supports and represents all ANU students