FINS2624 Portfolio Management - 2019

Term 3
6 Units of Credit
On Campus
Banking & Finance
The course outline is not available for current semester. To view outlines from other years and/or semesters, visit the archives .

1. Course Details

Summary of Course

This course will introduce you to investment theories with an equal emphasis on theory and practice. The Markowitz portfolio theory and the CAPM are studied and applied to design portfolios, estimate asset betas, price and manage risk, and identify mispriced assets. We will also study in detail: bond valuation and associated risks; option valuation and strategies; and evaluation of investment performance where ethical aspects of CFA Institute’s Global Investment Performance Standards (GIPS®) will also be discussed.

Teaching Times and Locations

Please note that teaching times and locations are subject to change. Students are strongly advised to refer to the Class Timetable website for the most up-to-date teaching times and locations.

View course timetable

Course Policies & Support

Course Aims and Relationship to Other Courses

Portfolio Management is one of four core courses in finance. This course extends and applies knowledge in financial mathematics acquired from FINS1613 and/or ECON 1202 to price bonds and options; portfolio theory from FINS1613 to rank and select portfolios; linear programming and calculus from ECON 1202 to determine the composition and attributes of a portfolio, frequency distribution, measures of central tendency, mean and dispersion, the normal distribution, point estimation of population parameters and confidence intervals from ECON 1203 to understand investment risk, expected return and option pricing models; hypothesis testing, t-distributions, and bivariate regression from ECON1203 to study the CAPM.

This course also covers the assumed knowledge required by finance courses in the area of funds management (FINS3640 and FINS3641); real estate finance (FINS3633); risk management (FINS3631, FINS3635 and FINS3636); and the honours program (FINS3775).

2. Staff Contact Details

Position Title Name Email Location Phone Consultation Times
Lecturer-in-chargeMrLuis Goncalves-Pinto Room 355, UNSW Business School – Ref E12
By appointment only

​If you have questions outside the lectures and consultations, please raise them in the relevant Moodle forum.

3. Learning and Teaching Activities

Approach to Learning and Teaching in the Course

The philosophy underpinning this course is best summarized by the following list of guidelines extracted from Guidelines on Learning that inform teaching at UNSW.

  • Effective learning is supported when students are actively engaged in the learning process.
  • Students become more engaged in the learning process, if they can see the relevance of their studies to professional, disciplinary and/or personal contexts.
  • Clearly articulated expectations, goals, learning outcomes, and course requirements increase student motivation and improve learning.
  • Effective learning is facilitated by assessment practices and other student learning activities that are designed to support the achievement of desired learning outcomes.
  • Meaningful and timely feedback to students improves learning.

We believe that a disciplined approach to learning is important for effective learning. Students should engage in the learning process through regular class attendance, and regular staff or peer consultation to resolve any learning issues.

We also believe that a well-organized and structured course is important for effective learning and teaching. Besides designing a coherent lecture and tutorial program to present and discuss the syllabus, we will:

  • Use actual examples and research findings in lectures to demonstrate the relevance of the subject to the finance profession, and;
  • Give students a variety of questions to practice and apply concepts.

The teaching strategies and assessments that we formulate below are due entirely to the learning outcomes and the philosophy underpinning this course.

Learning Activities and Teaching Strategies

In lectures, we introduce you to investment theories and securities pricing. Whenever a finance theory is discussed we give it a thorough theoretical motivation, explain its merits and applications, and use practical examples to relate the theory to the real world. We believe that this logical sequence of discussions can help you to assimilate knowledge due to understanding rather than memorization.

To gain a deeper understanding of the materials taught, you need to revise the lesson soon after each lecture by studying the prescribed readings, the lecture slides, and the notes you took in class. In addition to the face-to-face mode of consultation with the lecturers, we will open a discussion forum for students to post questions and seek peer assistance. By sharing the questions and responses in the forum, the discussion forum should benefit the whole class and is the preferred mode of electronic communication. If you email individual instructors questions about the course, you are likely to be asked to post it in the discussion forum instead, so please try to post your question there directly.

The tutorials, problem sets, and extra exercises are used to help you improve your critical thinking and problem-solving skills, and to prepare you for the assignments and examination.

Learning will not be completed without feedback.

The problem sets will be discussed formally in the tutorials. We value and will reward your active participation to ask and answer questions. The tutor will correct any misunderstandings and help you to understand the approach we use to solve the problem.

The tutors will monitor and participate in the discussion forum during their consultation times to complement peer assistance.

5. Course Resources

​The website for this course is on Moodle.
Students are expected to log in to the course website regularly to download course materials, read course announcements, and participate in the discussion board.

There are two alternative textbooks for the course. Students may choose either of the following:

  • Investments, by Z. Bodie, A. Kane, and A. Marcus, 11th Ed., McGraw-Hill Irwin, 2018
  • The custom version of Bodie et al (2018) called FINS2624 - Portfolio Management, prepared by Robert Bishop.

The difference between these books is that the former is the full, standard textbook and the latter contains only the chapters from that book that are used in this course. The advantage of the full book is that students may find it useful (and required) in other courses. The advantage of the latter book is that it is cheaper. We recommend students that mean to major in finance to buy the full textbook and students that do not intend to take further finance courses to buy the custom version. For the purpose of this course there is no difference between the two. There are older editions of the textbooks. These do not exactly correspond to the book we’re using. However, the differences between editions are typically small.

6. Course Evaluation & Development

Feedback is regularly sought from students and continual improvements are made based on this feedback. At the end of this course, you will be asked to complete the myExperience survey, which provides a key source of student evaluative feedback. Your input into this quality enhancement process is extremely valuable in assisting us to meet the needs of our students and provide an effective and enriching learning experience. The results of all surveys are carefully considered and do lead to action towards enhancing educational quality.

​Feedback from previous students indicated that it is important to specify assessment items and the grading rules in the course outline. As a result of this feedback, we have tried our best to give as much detail on assessments in the course outline.

7. Course Schedule

Note: for more information on the UNSW academic calendar and key dates including study period, exam, supplementary exam and result release, please visit:
Week Activity Topic Assessment/Other
Week 1: 16 SeptemberLecture

Bond Pricing; Term Structure of Interest Rates I

No Tutorial Session

Reading: Course outline, BKM 14 (14.1 - 14.3), BKM 15 (15.1)

Week 2: 23 SeptemberLecture

Term Structure of Interest Rates II; Duration

Tutorial 1 (Problem Set 1)

Reading: BKM 15 (15.2 - 15.5), BKM 16 (16.1 - 16.3)


Week 3: 30 SeptemberLecture

Markowitz Portfolio Theory

Tutorial 2 (Problem Set 2)

Reading: BKM 5 (5.4 - 5.5), BKM 6 (6.1, 6.5), BKM 7 (7.1 - 7.2, 7.4, Appendix B)

Week 4: 7 OctoberLecture

Optimal Portfolios

Tutorial 3 (Problem Set 3)

Readings: BKM 6 (6.2 - 6.6), BKM 7 (7.3 - 7.4)

Week 5: 14 OctoberLecture

CAPM; SIM and Factor Models

Tutorial 4 (Problem Set 4)

Readings: BKM 8 (8.1 - 8.5), BKM 9 (9.1), BKM 10 (all sections)

Week 6: 21 OctoberLecture

Efficient Market Hypothesis and Behavioural Finance

Tutorial 5 (Problem Set 5)

Readings: BKM 11 (11.1 - 11.5), BKM 12 (12.1)


First iLab Session


Start individual and team exercises (Submission due dates as announced on Moodle)


Interim Exam

Week 7: 28 OctoberLecture

Performance Measures

Tutorial 6 (Problem Set 6)

Readings: BKM 24 (24.1 - 24.5)

Week 8: 4 NovemberLecture

Option Strategies

Tutorial 7 (Problem Set 7)

Readings: BKM 20 (20.1 - 20.4)

Week 9: 11 NovemberLecture

Option Valuation

Tutorial 8 (Problem Set 8)

Readings: BKM 21 (21.1 - 21.3)


Second iLab Session

Complete individual and team exercises

Week 10: 18 NovemberLecture

Review Session for Final Exam

Tutorial 9 (Problem Set 9)


Term Break: 25 November
Exams: 2 December
Exams: 9 December

8. Policies and Support

Information about UNSW Business School protocols, University policies, student responsibilities and education quality and support.

Program Learning Outcomes

The Business School places knowledge and capabilities at the core of its curriculum via seven Program Learning Outcomes (PLOs). These PLOs are systematically embedded and developed across the duration of all coursework programs in the Business School.

PLOs embody the knowledge, skills and capabilities that are taught, practised and assessed within each Business School program. They articulate what you should know and be able to do upon successful completion of your degree.

Upon graduation, you should have a high level of specialised business knowledge and capacity for responsible business thinking, underpinned by ethical professional practice. You should be able to harness, manage and communicate business information effectively and work collaboratively with others. You should be an experienced problem-solver and critical thinker, with a global perspective, cultural competence and the potential for innovative leadership.

All UNSW programs and courses are designed to assess the attainment of program and/or course level learning outcomes, as required by the UNSW Assessment Design Procedure. It is important that you become familiar with the Business School PLOs, as they constitute the framework which informs and shapes the components and assessments of the courses within your program of study.

PLO 1: Business knowledge

Students will make informed and effective selection and application of knowledge in a discipline or profession, in the contexts of local and global business.

PLO 2: Problem solving

Students will define and address business problems, and propose effective evidence-based solutions, through the application of rigorous analysis and critical thinking.

PLO 3: Business communication

Students will harness, manage and communicate business information effectively using multiple forms of communication across different channels.

PLO 4: Teamwork

Students will interact and collaborate effectively with others to achieve a common business purpose or fulfil a common business project, and reflect critically on the process and the outcomes.

PLO 5: Responsible business practice

Students will develop and be committed to responsible business thinking and approaches, which are underpinned by ethical professional practice and sustainability considerations.

PLO 6: Global and cultural competence

Students will be aware of business systems in the wider world and actively committed to recognise and respect the cultural norms, beliefs and values of others, and will apply this knowledge to interact, communicate and work effectively in diverse environments.

PLO 7: Leadership development

Students will develop the capacity to take initiative, encourage forward thinking and bring about innovation, while effectively influencing others to achieve desired results.

These PLOs relate to undergraduate and postgraduate coursework programs.  Separate PLOs for honours and postgraduate research programs are included under 'Related Documents'.

Business School course outlines provide detailed information for students on how the course learning outcomes, learning activities, and assessment/s contribute to the development of Program Learning Outcomes.



UNSW Graduate Capabilities

The Business School PLOs also incorporate UNSW graduate capabilities, a set of generic abilities and skills that all students are expected to achieve by graduation. These capabilities articulate the University’s institutional values, as well as future employer expectations.

UNSW Graduate CapabilitiesBusiness School PLOs
Scholars capable of independent and collaborative enquiry, rigorous in their analysis, critique and reflection, and able to innovate by applying their knowledge and skills to the solution of novel as well as routine problems.
  • PLO 1: Business knowledge
  • PLO 2: Problem solving
  • PLO 3: Business communication
  • PLO 4: Teamwork
  • PLO 7: Leadership development

Entrepreneurial leaders capable of initiating and embracing innovation and change, as well as engaging and enabling others to contribute to change
  • PLO 1: Business knowledge
  • PLO 2: Problem solving
  • PLO 3: Business communication
  • PLO 4: Teamwork
  • PLO 6: Global and cultural competence
  • PLO 7: Leadership development

Professionals capable of ethical, self-directed practice and independent lifelong learning
  • PLO 1: Business knowledge
  • PLO 2: Problem solving
  • PLO 3: Business communication
  • PLO 5: Responsible business practice

Global citizens who are culturally adept and capable of respecting diversity and acting in a socially just and responsible way.
  • PLO 1: Business knowledge
  • PLO 2: Problem solving
  • PLO 3: Business communication
  • PLO 4: Teamwork
  • PLO 5: Responsible business practice
  • PLO 6: Global and cultural competence

While our programs are designed to provide coverage of all PLOs and graduate capabilities, they also provide you with a great deal of choice and flexibility.  The Business School strongly advises you to choose a range of courses that assist your development against the seven PLOs and four graduate capabilities, and to keep a record of your achievements as part of your portfolio. You can use a portfolio as evidence in employment applications as well as a reference for work or further study. For support with selecting your courses contact the UNSW Business School Student Centre.

Academic Integrity and Plagiarism

Academic Integrity is honest and responsible scholarship. This form of ethical scholarship is highly valued at UNSW. Terms like Academic Integrity, misconduct, referencing, conventions, plagiarism, academic practices, citations and evidence based learning are all considered basic concepts that successful university students understand. Learning how to communicate original ideas, refer sources, work independently, and report results accurately and honestly are skills that you will be able to carry beyond your studies.

The definition of academic misconduct is broad. It covers practices such as cheating, copying and using another person’s work without appropriate acknowledgement. Incidents of academic misconduct may have serious consequences for students.


UNSW regards plagiarism as a form of academic misconduct. UNSW has very strict rules regarding plagiarism. Plagiarism at UNSW is using the words or ideas of others and passing them off as your own. All Schools in the Business School have a Student Ethics Officer who will investigate incidents of plagiarism and may result in a student’s name being placed on the Plagiarism and Student Misconduct Registers.

Below are examples of plagiarism including self-plagiarism:

Copying: Using the same or very similar words to the original text or idea without acknowledging the source or using quotation marks. This includes copying materials, ideas or concepts from a book, article, report or other written document, presentation, composition, artwork, design, drawing, circuitry, computer program or software, website, internet, other electronic resource, or another person's assignment, without appropriate acknowledgement of authorship.

Inappropriate Paraphrasing: Changing a few words and phrases while mostly retaining the original structure and/or progression of ideas of the original, and information without acknowledgement. This also applies in presentations where someone paraphrases another’s ideas or words without credit and to piecing together quotes and paraphrases into a new whole, without appropriate referencing.

Collusion: Presenting work as independent work when it has been produced in whole or part in collusion with other people. Collusion includes:

  • Students providing their work to another student before the due date, or for the purpose of them plagiarising at any time
  • Paying another person to perform an academic task and passing it off as your own
  • Stealing or acquiring another person’s academic work and copying it
  • Offering to complete another person’s work or seeking payment for completing academic work

Collusion should not be confused with academic collaboration (i.e., shared contribution towards a group task).

Inappropriate Citation: Citing sources which have not been read, without acknowledging the 'secondary' source from which knowledge of them has been obtained.

Self-Plagiarism: ‘Self-plagiarism’ occurs where an author republishes their own previously written work and presents it as new findings without referencing the earlier work, either in its entirety or partially. Self-plagiarism is also referred to as 'recycling', 'duplication', or 'multiple submissions of research findings' without disclosure. In the student context, self-plagiarism includes re-using parts of, or all of, a body of work that has already been submitted for assessment without proper citation.

To see if you understand plagiarism, do this short quiz:


The University also regards cheating as a form of academic misconduct. Cheating is knowingly submitting the work of others as their own and includes contract cheating (work produced by an external agent or third party that is submitted under the pretences of being a student’s original piece of work). Cheating is not acceptable at UNSW.

If you need to revise or clarify any terms associated with academic integrity you should explore the 'Working with Academic Integrity' self-paced lessons available at:

For UNSW policies, penalties, and information to help you avoid plagiarism see: as well as the guidelines in the online ELISE tutorials for all new UNSW students: For information on student conduct see:

For information on how to acknowledge your sources and reference correctly, see: If you are unsure what referencing style to use in this course, you should ask the lecturer in charge.

Student Responsibilities and Conduct

Students are expected to be familiar with and adhere to university policies in relation to class attendance and general conduct and behaviour, including maintaining a safe, respectful environment; and to understand their obligations in relation to workload, assessment and keeping informed.

Information and policies on these topics can be found on the 'Managing your Program' website.


It is expected that you will spend at least ten to twelve hours per week studying for a course except for Summer Term courses which have a minimum weekly workload of twenty to twenty four hours. This time should be made up of reading, research, working on exercises and problems, online activities and attending classes. In periods where you need to complete assignments or prepare for examinations, the workload may be greater. Over-commitment has been a cause of failure for many students. You should take the required workload into account when planning how to balance study with employment and other activities.

We strongly encourage you to connect with your Moodle course websites in the first week of semester. Local and international research indicates that students who engage early and often with their course website are more likely to pass their course.

View more information on expected workload


Your regular and punctual attendance at lectures and seminars or in online learning activities is expected in this course. The Business School reserves the right to refuse final assessment to those students who attend less than 80% of scheduled classes where attendance and participation is required as part of the learning process (e.g., tutorials, flipped classroom sessions, seminars, labs, etc.).

View more information on attendance

General Conduct and Behaviour

You are expected to conduct yourself with consideration and respect for the needs of your fellow students and teaching staff. Conduct which unduly disrupts or interferes with a class, such as ringing or talking on mobile phones, is not acceptable and students may be asked to leave the class.

View more information on student conduct

Health and Safety

UNSW Policy requires each person to work safely and responsibly, in order to avoid personal injury and to protect the safety of others.

View more information on Health and Safety

Keeping Informed

You should take note of all announcements made in lectures, tutorials or on the course web site. From time to time, the University will send important announcements to your university e-mail address without providing you with a paper copy. You will be deemed to have received this information. It is also your responsibility to keep the University informed of all changes to your contact details.

Student Support and Resources

The University and the Business School provide a wide range of support services and resources for students, including:

Business School EQS Consultation Program
The Consultation Program offers academic writing, literacy and numeracy consultations, study skills, exam preparation for Business students. Services include workshops, online resources, individual and group consultations.
Level 1, Room 1035, Quadrangle Building.
02 9385 4508

Communication Resources
The Business School Communication and Academic Support programs provide online modules, communication workshops and additional online resources to assist you in developing your academic writing.

Business School Student Centre
The Business School Student Centre provides advice and direction on all aspects of admission, enrolment and graduation.
Level 1, Room 1028 in the Quadrangle Building
02 9385 3189

UNSW Learning Centre
The UNSW Learning Centre provides academic skills support services, including workshops and resources, for all UNSW students. See their website for details.
Lower Ground Floor, North Wing Chancellery Building.
02 9385 2060

Educational Support Service
Educational Support Advisors work with all students to promote the development of skills needed to succeed at university, whilst also providing personal support throughout the process. Check their website to request an appointment or to register in the Academic Success Program.
John Goodsell Building, Ground Floor.
02 9385 4734

Library services and facilities for students
The UNSW Library offers a range of collections, services and facilities both on-campus and online.
Main Library, F21.
02 9385 2650

Moodle eLearning Support
Moodle is the University’s learning management system. You should ensure that you log into Moodle regularly.
02 9385 3331

UNSW IT provides support and services for students such as password access, email services, wireless services and technical support.
UNSW Library Annexe (Ground floor).
02 9385 1333

Disability Support Services
UNSW Disability Support Services provides assistance to students who are trying to manage the demands of university as well as a health condition, learning disability or who have personal circumstances that are having an impact on their studies. Disability Advisers can arrange to put in place services and educational adjustments to make things more manageable so that students are able to complete their course requirements. To receive educational adjustments for disability support, students must first register with Disability Services.
Ground Floor, John Goodsell Building.
02 9385 4734

UNSW Counselling and Psychological Services
Provides support and services if you need help with your personal life, getting your academic life back on track or just want to know how to stay safe, including free, confidential counselling.
Level 2, East Wing, Quadrangle Building.
02 9385 5418

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