Security Analysis & Portfolio Management

Course Content: Unit No. Content No. of Hours % of Weightage

1.

Introduction to Investment:

 Introduction

 Investment vs. Speculation, Investment vs. Gambling

 Investment Objectives, Investment Attributes

 Investment Process

 Security Analysis vs. Portfolio Management

 Portfolio Management Process

 Meaning and Types of Returns

Holding Period Return (Theory and Numerical).

Expected Return–Annualized return – measurement of return.

 Risk – Types of Risk – Measurement of Risk (Theory and numerical).

10

17

2.

Security analysis:

 Fundamental Analysis:

Economic, Industry and Company Analysis, Forecasting earnings, Efficient Market Hypothesis, Different Forms of EMH and their Empirical Tests

 Technical Analysis: Charting Tools, Market Indicators, Dow Theory, Elliot Wave Theory, Random Walk Theory

 Introduction to Behavioral Finance

 Introduction to Market Anomalies (Calendar or seasonal anomalies, Cross-section anomalies, Event-based anomalies, Momentum and reversal)

12

18

3.

Selection / Construction of Securities by applying theories:

 Markowitz Model - Efficient Frontier

 Constructing an Optimal portfolio using Sharpe’s Single Index Model (Theory and Numerical).

 Capital Market Theory: CML, SML, Capital Asset Pricing Model, (Theory and Numerical).

 Arbitrage Pricing Theory (Only Theory)

13

17

4.

Portfolio Management & Measurement:

 Portfolio Execution

 Portfolio Revision and Performance Evaluation (Theory and Numerical).

Bonds & Valuation:

 Bond Prices & Yields (Theory and Numerical).