Security Analysis And Portfolio Management

Module 1

Introduction to SAPM

Meaning and Relevance of Investment –Various Investment Avenue – Security Market – Various Types of Security – Equity Share, Government Security and Mutual Funds -Security Analysis –Fundamental Analysis – Concept of Intrinsic Value – Calculation of EPS and PE ratio –Share Valuation Model –Constant Growth Model –Multiple Growth Model.

Module 2

Technical Analysis of Security

Introduction to Dow Theory, Relevance of Elliot Wave Theory in Technical Analysis – Various Tools and Technique of Technical Analysis – Line Charts, Bar Charts – Japanese Candlestick – EMA Oscillators-Rate of Change Indicators – Relative Strength Index- Calculation of Support and Resistance Level The On-Balance-Volume Indicator-Average Directional Index.

Module 3

Efficient Market Theory

Efficient Market Hypotheses - Random Walk Theory - forms of Market Efficiency – Weak Form, Semi-Strong form and Strong form of Market Efficiency – Empirical Tests of Market Efficiency –Comparison of Efficient Market Hypothesis and Fundamental Analysis-Efficient Market Hypothesis and Repudiation of Technical Analysis.

Module 4

Portfolio analysis and selection

Measurement of Return and Risk of Portfolios – Two Assets Model of Portfolio – Risk Reduction Through Portfolio Diversification – Relationship Between Portfolio – covariance and Correlation Coefficient – Portfolio Selection – Markowitz Portfolio Theory (MPT) – Feasible Set – Efficient Frontier – Sharpe’s Single Index Model – Capital Asset Pricing Model (CAPM) – Pricing of Securities with CAPM and Security Market Line – Multifactor Models – Arbitrage Pricing Theory.

Module 5

Portfolio Revision and Evaluation

Portfolio Revision – Need – Factors Affecting Portfolio Revision – Portfolio Revision Strategies – Formula Plans – Portfolio Evaluation – Need – Benchmarks – Relationship Between Security Return and Market Return Expressed in Terms of Beta – Concept of Risk-Free Return and Risk Adjusted Return – Sharpe Ratio or Reward to Variability Ratio and Treynor Ratio or Reward to volatility Ratio – Differential Return Using Jensen’s Measure – Fama’s Decomposition Model.