Course Code: FIN301
Course Title: Security Analysis and Portfolio Management (4 Credits)
Investment – A Conceptual Framework: Investment process, risks of investment and the common mistakes made in investment management
Investment Environment: Features and composition of money market and capital market, money market, capital market instruments and financial derivatives
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
Fundamental Analysis: Economy analysis, industry analysis and company analysis, weaknesses of fundamental analysis
Technical Analysis: Tools of technical analysis, important chart formations or price patterns and technical indicators
Efficient Market Hypothesis: Concept of ‘Efficient Market’ and its implications for security analysis and portfolio management.
Behavioral Finance: Meaning of Behavioral finance, deals with when, how and why psychology influences investment decisions
Valuation of bonds and shares: Elements of investment, bond features and prices, call provisions on corporate bonds, convertible bonds and valuation of bonds
Portfolio Management – Risks and Returns: Concept of portfolio and portfolio management, concept of risk, types of portfolio management
Markowitz Portfolio Selection Model: Concept of portfolio analysis and diversification of risk. Also discusses Markowitz Model and Efficient Frontier
Capital Asset Pricing Model (CAPM): Deals with the assumptions of CAPM and the inputs required for applying CAPM and the limitations of this Model
Sharpe-The Single Index Model: Measurement of return on an individual stock, measurement of portfolio return and measurement of individual stock risk
Factor Models and Arbitrage Pricing Theory: Arbitrage Pricing Theory and its principles, Comparison of Arbitrage Pricing Theory with the Capital Asset Pricing Model.
International Portfolio Investments: Investment avenues for foreign portfolio investors, risks and returns associated with such investment.
Mutual Fund Operations: Mutual funds as a key financial intermediary, mobilizing savings and investing them in capital markets.