Course Code: FIN301 |
Course Title: Security Analysis and Portfolio Management (4 Credits) |
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.