Investment Analysis And Portfolio Management

Syllabus

MBA 911-18: INVESTMENT ANALYSIS AND PORTFOLIO MANAGEMENT

Unit I

Introduction: Concepts of Investment, Objectives of Investment, Various Alternatives of Investments, Investment Process, Financial Investments vs. Real Investments, Differentiate Investment, Speculation and Gambling.

Risk and Return: Concept, Types and Measurement of Risk and Return.

Financial Markets - Primary and Secondary Markets. Introduction to Primary Market, Design of Primary Market, its Role and Functions, types of Offers in the Primary Market, SEBI Guidelines on Primary Market.

Secondary Market: Introduction, Participants, Trading and Settlement Mechanism, Types of Orders, Stop Loss, Margin Trading, Short Selling, Price Freeze, Hair-cut, Market Wide Circuit Breakers, Insider Trading, Bulk Deals, Block Deals and Arbitrage Opportunity in the Market.

Unit II

Fundamental Analysis: Meaning, Scope and Introduction to Concept of Intrinsic Value. Process of Conducting Economic Analysis; Industry Analysis and Company Analysis by Using E-I-C and C-I-E Approaches. Valuation of Securities Using Fundamental Analysis.

Unit III

Technical Analysis: Introduction, Terminology of Technical Analysis, Dow Theory, Characteristic Phases of Bull and Bear Trends, Critical Appraisal of Dow Theory, Various Types of Charts, Concept of Trend, Trend Lines: Support and Resistance, Importance of Trading Volume, Reversal Patterns, Continuation Pattern, Moving Averages, Other Market Indicators.

Portfolio Management: Meaning, Importance and Approaches of Portfolio Management, Portfolio Analysis, Portfolio Evaluation and Revision Techniques.

Unit IV

Portfolio Theory: Markowitz Model, Capital Asset Pricing Model, Single-Index Model, Arbitrage Pricing Theory. Market Efficiency and Behavioural Finance.

Derivatives: Introduction, Features, Derivative Instruments, Difference between Forward and Futures Contracts, Types of Option Contracts, Computing Payoffs of Forward, Futures and Option Contracts.