Security Analysis and Portfolio Management Syllabus

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Course Contents

Unit 1

Investment – A Conceptual Framework: Investment process, risks of investment and the common mistakes made in investment management

Unit 2

Investment Environment: Features and composition of money market and capital market, money market, capital market instruments and financial derivatives

Unit 3

Risk and Return: Concepts of risk and return, how risk is measured in terms of standard deviation and variance, the relationship between risk and return

Unit 4

Fundamental Analysis: Economy analysis, industry analysis and company analysis, weaknesses of fundamental analysis

Unit 5

Technical Analysis: Tools of technical analysis, important chart formations or price patterns and technical indicators

Unit 6

Efficient Market Hypothesis: Concept of ‘Efficient Market’ and its implications for security analysis and portfolio management.

Unit 7

Behavioral Finance: Meaning of Behavioral finance, deals with when, how and why psychology influences investment decisions

Unit 8

Valuation of bonds and shares: Elements of investment, bond features and prices, call provisions on corporate bonds, convertible bonds and valuation of bonds

Unit 9

Portfolio Management – Risks and Returns: Concept of portfolio and portfolio management, concept of risk, types of portfolio management

Unit 10

Markowitz Portfolio Selection Model: Concept of portfolio analysis and diversification of risk. Also discusses Markowitz Model and Efficient Frontier

Unit 11

Capital Asset Pricing Model (CAPM): Deals with the assumptions of CAPM and the inputs required for applying CAPM and the limitations of this Model

Unit 12

Sharpe-The Single Index Model: Measurement of return on an individual stock, measurement of portfolio return and measurement of individual stock risk

Unit 13

Factor Models and Arbitrage Pricing Theory: Arbitrage Pricing Theory and its principles, Comparison of Arbitrage Pricing Theory with the Capital Asset Pricing Model.

Unit 14

International Portfolio Investments: Investment avenues for foreign portfolio investors, risks and returns associated with such investment.

Unit 15

Mutual Fund Operations: Mutual funds as a key financial intermediary, mobilizing savings and investing them in capital markets.

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