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.