Security Analysis and Portfolio Management

Syllabus

BA4001: Security Analysis and Portfolio Management

Unit I: Investment Setting                                                                                                                       9

Financial and Economic Meaning of Investment – Characteristics and Objectives of Investment – Investment Process -Types of Investment – Investment Alternatives – Choice and Evaluation – Risk and Return Concepts - Valuation of Bonds and Stock.

Unit II: Fundamental Analysis                                                                                                               9

Economic Analysis – Economic Forecasting and Stock Investment Decisions – Forecasting Techniques. Industry Analysis: Industry Classification, Industry Life Cycle – Company Analysis Measuring Earnings – Forecasting Earnings – Applied Valuation Techniques – Graham and Dodds Investor Ratios.

Unit III: Technical Analysis                                                                                                                    9

Fundamental Analysis Vs Technical Analysis - Dow theory – Charting Methods - Chart Patterns Trend – Trend Reversals – Market Indicators - Moving Average – Exponential Moving Average Oscillators - RSI - ROC - MACD.

Efficient Market Theory - Forms of Market Efficiency -Weak, Semi-Strong, Strong Form - Empirical Tests of Market Efficiency - its Application.

Unit IV: Portfolio Construction and Selection                                                                                      9

Portfolio Analysis - Reduction of Portfolio Risk Through Diversification – Portfolio Risk - Portfolio Selection - Feasible Set of Portfolios - Efficient Set - Markowitz Model - Single Index Model - Construction of Optimum Portfolio - Multi-Index Model.

Unit V:                                                                                                                                                      9

Capital Asset Pricing Model - Lending and Borrowing - CML - SML - Pricing with CAPM - Arbitrage Pricing Theory – Portfolio Evaluation – Sharpe’s Index Treynor’s Index, Jensen’s Index – Mutual Funds – Portfolio Revision.