Investment Analysis And Portfolio Management

Syllabus

COURSE CODE- KMBN FM01

INVESTMENT ANALYSIS & PORTFOLIO MANAGEMENT

Unit I: Investment                                                                                                                         (7 Hrs)

Overview of Capital Market: Market of Securities, Stock Exchange and New Issue Markets - their Nature, Structure, Functioning and Limitations; Trading of Securities: Equity and Debentures/ Bonds. Securities Trading - Types of Orders, Margin Trading, Clearing and Settlement Procedures. Regularity Systems for Equity Markets, Type of Investors, Aim & Approaches of Security Analysis.

Unit II: Portfolio Theory                                                                                                               (9 Hrs)

Risk & Return: Concept of Risk, Component & Measurement of Risk, Covariance and Correlation, Fundamental Coefficient, Measurement of Systematic Analysis: Economic, Industry, Company Analysis, Portfolio Risk and Return, Beta as a Measure of Risk, Calculation of Beta, Selection of Portfolio: Markowitz’s Theory, Single Index Model, Case Studies.

Unit III: Capital Market & Asset Pricing                                                                                    (6 Hrs)

Technical Analysis: Dow Theory, Support and Resistance Level, Type of Charts & its Interpretations, Trend Line, Gap Wave Theory, Relative Strength Analysis, Technical Versus Fundamental Analysis. Nature of Stock Markets: EMH (Efficient Market Hypothesis) and its Implications for Investment Decision. Capital Market Theorem, CAPM (Capital Asset Pricing Model) and Arbitrage Pricing Theory. Case Studies.

Unit IV: Bond, Equity and Derivative Analysis:                                                                        (8 Hrs)

Valuation of Equity Discounted Cashflow Techniques: Balance Sheet Valuation, Dividend Discount Models, Intrinsic Value and Market Price, Earnings Multiplier Approach, P/E Ratio, Price/Book Value, Price/Sales Ratio, Economic Value Added (EVA). Valuation of Debentures/Bonds: Nature of Bonds, Valuation, Bond Theorem, Term Structure of Interest Rates.

Unit V: Active Portfolio Management                                                                                          (6 Hrs)

Portfolio Management and Performance Evaluation: Performance Evaluation of Existing Portfolio, Sharpe, Treynor and Jensen Measures; Finding Alternatives and Revision of Portfolio; Portfolio Management and Mutual Fund Industry.