Security Analysis and Portfolio Management (Theory)

Paper Code: 
24DFSG611B
Credits: 
4
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 

This course will enable students to comprehend the basics of stock markets, risk-return relationships, security analysis methods, portfolio construction techniques, and portfolio performance evaluation measures in investment management.

 

Course Outcomes: 

Course

Learning outcome

(at course level)

Learning and teaching strategies

Assessment Strategies

Course Code

Course

Title

 

24DFSG 611B

Security Analysis and Portfolio Management

(Theory)

 

CO217: Acquire knowledge about the Concept of Savings and investment, various investment avenues available and Risk and return associated with them.

CO218: Measure risk and return associated with securities and Portfolio.

CO219: Build ability to comprehend various techniques of Fundamental Analysis and Technical Analysis of securities.

CO220: Develop the ability to use diversification strategy and CAPM to reduce risk in Investment

CO221: Develop skills to evaluate and measure Portfolio performance using various parameters..

CO222: Contribute effectively in course-specific interaction

 

Approach in teaching: Interactive Lectures, Discussion, Tutorials, Power point presentation.    

 Learning activities for the students:                              Self learning assignments,  presentation, Live practical problems analysis

CA test, Semester end examinations, Quiz, Solving problems in tutorials, Assignments, Presentation.

 

12.00
Unit I: 
Basics of stock markets
  • Introduction to  Stock Market Indices,        
  • Meaning of Investment Objective of Investment,Sources of investment information and uses of data , Types of investments, Investment Avenues- Securities and Non Securities form of Investment Avenues,
  • Investment versus Speculation
  • Approaches to investment decisions
  • Introduction to Security Analysis: Concepts of security analysis, Usefulness, An overview of securities market,  portfolio management process

 

12.00
Unit II: 
Risk and Return on Investments
  • Measures of Returns and Risk - Single asset
  • Measures of Returns and Risk - Portfolio
  • Relationship risk and return,
  • Classification of risks: Systematic & Unsystematic Risk
  • Concept of Beta.

 

12.00
Unit III: 
Security Analysis Approaches
  • Fundamental Analysis for Fundamental analysis Theoretical Framework of Economic analysis, Industry Analysis, and Company Analysis.
  • Technical analysis: Introduction Assumptions of the theory – The Dow theory, Elliot Wave theory
  • Charts – Line charts, Bar Charts, Candle Stick Chart,
  •  Patterns -Head and Shoulders, trend line, double top and double bottom, Resistance and support level
  • Oscillators Moving average, ROC

 

12.00
Unit IV: 
Portfolio Construction and Capital Market Theory Portfolio management
  • lMeaning 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
  • lApproaches to Portfolio Construction: Traditional Method and Modern Approach. Markowitz Portfolio Model – Concept. Markowitz Efficient Frontier.
  • Capital Asset Pricing Theory, Assumptions –Capital market line –The security market line- capital market line VS Security market line
  • Arbitrage Pricing Theory 
12.00
Unit V: 
Evaluation and Revision of of Portfolio Performance
  • Measures of portfolio performance 
  • Rewards to variability and rewards to volatility Sharpe’s performance index
  • Treynor’s performance index
  • Jenson’s performance index-problems
  • Determinants of Portfolio Performance
  • Portfolio Revision : Need of Revision, Portfolio Revision Strategies

 

Essential Readings: 

• Bhalla V.K ,Investment Management (Security Analysis and Portfolio Management), S.Chand
• Chandra Prasanna, Investment Analysis and Portfolio Management, TMH.
• Rustogi, R.P. Fundamentals of Investment, Sultan Chand & Sons, New Delhi.
• M.R. Agarwal, Security Analysis and Portfolio Management, Garima Publications.

References: 

Suggested Readings: :
• Jones, C.P. Investments Analysis and Management. Wiley.
• P. Pandian,Security Analysis and Portfolio Management, Vikas Publishing house ltd.
• Donald E.F , Ronald J.J, Ashwini P.Security Analysis and Portfolio Management, Pearson.
• Vohra, N.D. and Bagri, Futures and options, Mc Graw hill Publishing.
• Ranganatham M.,Security Analysis and Portfolio Management,Pearson.
• Mayo. An Introduction to Investment. Cengage Learning.
• 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
• Quantitative Methods for finance and investments, John L. Teall and Iftekher Hasan, Black Well Publishers, 2

E-Content:
• Online Financial Investment Resources: https://study.com/academy/lesson/online-financial-investment-resources.html
• EBSCO-BSE

Reference Journals :
• Journal of Emerging Market Finance : http:// sagepub.com
• International Journal of Financial Management:http://publishingindia.com

Academic Year: 
2024-2025
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