Portfolio Management

Course code ACFI3018
Available in 2015
2015 Course Timetables


This course begins with an overview of investment environment and products, and then provides students with a solid foundation in modern portfolio theory and demonstrates its applications to portfolio management. Alternative asset allocation models are introduced to equip students in developing and implementing investment strategies, assessing and controlling portfolio risk, and evaluating portfolio performance. The course takes students beyond investment theories and trains them to use widely available technology to perform quantitative modelling using real world data. The course covers ASIC RG146 specialised knowledge requirements in the areas of funds management and managed investments.



  • Semester 1 - 2015

Learning Outcomes

1. Understand the investment environment, institutional investment and empirical evidence on security performance.

2. Develop mean-variance efficient portfolios using appropriate technology.

3. Demonstrate critical thinking, analytical and problem solving skills in the context of portfolio construction and management.

4. Evaluate the performance of a portfolio and evaluate risk exposures.

5. Critically evaluate the advantages and disadvantages of international diversification.

6. Communicate investment portfolio decisions to potential investors.


This course includes but is not limited to the following topics:

  1. The investment environment.
  2. Risk, return, risk premia and risk aversion.
  3. Allocating capital between risky and risk-free assets.
  4. Mean-variance efficient portfolios and security analysis.
  5. Evaluation of portfolio risk and performance.
  6. Funds management.
  7. nternational diversification of portfolios.

Assumed Knowledge

ACFI2005 Finance and ACFI2070 Business Finance.

Assessment Items

Formal Examination: Final Exam

Written Assignment: Problem Set 1

Written Assignment: Problem Set 2

Presentation: Group Assignment

Contact Hours



Face to Face On Campus 2 hour(s) per Week for Full Term


Face to Face On Campus 1 hour(s) per Week for 12 Weeks