Investment and Portfolio Management

Paper Code: 
CBFS 502
Credits: 
04
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 

To acquaint students with the rationales of portfolio management and risk
associated with the various asset groups.

12.00
Unit I: 
Introduction to investments

Investment-meaning & Definition, Process of investing, Investment objectives,
Investment attributes, Factor influencing Investment decisions,
Importance of investment management

12.00
Unit II: 
Risk and Return on investments

Measures of Returns and Risk ( Measuring historical risk and return)
Relationship risk and return, Classification of risks: Systematic & Unsystematic
Risk

12.00
Unit III: 
Investment valuation

Time value of money-Time lines & Notations Present and Future Value of single
amount, Present Value and Future value of annuity, Techniques of discounting and
compounding.

12.00
Unit IV: 
Portfolio management

Meaning of portfolio, portfolio management process, objective of Portfolio
management, Types of portfolio management-Active portfolio management, Passive
Portfolio Management, Defensive Portfolio management, Aggressive Portfolio
Management, Income portfolio Management; Portfolio construction
Approaches: An Overview of Capital Market Theory, CAPM, Markowitz Portfolio
Selection Model

12.00
Unit V: 
Portfolio Analysis

Portfolio Analysis: Concept of portfolio analysis and diversification of risk. The
Benefits of Diversification, Diversification and Portfolio Risk,
Portfolio Return and Risk-Return of portfolio (Two assets), Risk of portfolio ( two
assets) , Risk and Return of Multi Security, Concept of Beta.

Essential Readings: 

Strategic Investment Decision, Laurence Krantz and Ailan Thomason, F.T. Prentice Hall, 2000.
 Investments: An Introduction, Herbert B. Mayo, South – Western College Publishing, 2005.
 Investments and Valuation, Aswath Damodaran, John Wiley & Sons Inc., 2001.
 Security Investments, David L. Scott, Rowman & Littlefield, 1981.
 Model Investment Theory, Haugen, Holden and Nofisinger, Prentice Hall, 2003.
 Contemporary Investments, Hearth, Houghton Mifflin, 1977.

References: 

Investments Spread Sheet, Sharpe, Prentice Hall, 2001.
 Essentials of Investments, Bodie, Irwin, 1997.
 Basic Investments, Herbert B. Mayo, South-Western College Publishing, 2005.
 Sound Investments, Larry Burkett, RICS, 1995.
 Investment: Principles and Practices, Ben Branch, Dearborn Financial Publishing, 1990.
 Investments: Analysis and Management, Charles P. Jones, John Wiley & Sons Inc., 2006.
 Investments (Shaum’s outline), Jack Clark Francis, McGraw Hill, 2000.
 Understanding Finance, Prentice Hall, 2004.
 Quantitative Methods for finance and investments, John L. Teall and Iftekher Hasan, Black
Well Publishers, 2002.

Academic Year: 
2021-2022
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