Security Analysis And Portfolio Management Book Third Sem MBA VTU

Syllabus

Course Code: 22MBAFM304

Security Analysis and Portfolio Management

Module 1                                                                                                             (6 Hours)

Introduction to Investment: Investment Avenues, Attributes, Investor V/s Speculator, Features of a Good Investment, Investment Process.

Financial Instruments: Money Market Instruments, Capital Market Instruments, Derivatives. Securities Market: Trading & Settlement Procedure, Stock Market Indicators- Indices of Indian Stock Exchanges (only Theory).

Module 2                                                                                                             (9 Hours)

Return and Risk Concepts: Concept of Risk, Causes of Risk, Types of Risk- Systematic Risk- Market Price Risk, Interest Rate Risk, Purchasing Power Risk, Unsystematic Risk- Business Risk, Financial Risk, Insolvency Risk, Risk-Return Relationship, Concept of Diversifiable Risk and Non-Diversifiable Risk. Calculation of Return and Risk of Individual Security & Portfolio (Theory & Problems).

Module 3                                                                                                             (9 Hours)

Valuation of Securities: Bond – Meaning, Features, Types, Determinants of Interest Rates, Bond Valuation, Bond Duration, Bond Management Strategies. Preference Shares- Concept, Valuation. Equity Shares- Concept, Valuation, Dividend Valuation Models, P/E Ratio Valuation Model. (Theory & Problems).

Module 4                                                                                                             (8 Hours)

Fundamental & Technical Analysis: Macro-Economic and Industry Analysis: Fundamental Analysis-EIC Frame Work, Economy Analysis, Industry Analysis, Company Analysis- Financial Statement Analysis. Market Efficiency: Efficient Market Hypothesis, Forms of Market Efficiency, Empirical Test for Different forms of Market Efficiency. Technical Analysis – Concept, Theories- Dow Theory, Eliot Wave theory. Charts-Types, Trends and Trend Reversal Patterns. Mathematical Indicators –Moving Average Convergence-Divergence, Relative Strength Index (Theory only).

Module 5                                                                                                             (9 Hours)

Modern Portfolio Theory: Markowitz Model- Diversification, Portfolio Return, Portfolio Risk, Efficient Frontier. Sharpe’s Single Index Model, Capital Asset Pricing Model: Assumptions, CAPM Equation, Capital Market Line, Security Market Line, CML V/s SML. Sharpe’s Optimum Portfolio Construction. (Theory & Problems).

Module 6                                                                                                             (9 Hours)

Portfolio Management Strategies and Performance Evaluation: Portfolio Management Strategies: Active and Passive Portfolio Management strategy. Portfolio Revision: Portfolio Revision Strategies – Objectives, Performance Plans. Mutual Funds: Concept of Mutual Funds, Participants in Mutual Funds, Advantages of Investment in Mutual Fund, Measure of Mutual Fund Performance. Portfolio Performance Evaluation: Measures of Portfolio Performance (Theory & Problems).