Coming soon
Risk Analysis and Portfolio Management
Course Objective
- To gain an understanding of the theory underlying optimal portfolio construction, the different ways portfolio are actually built in practice after estimation of investment corpus and how to measure and manage the risk of such portfolio .
Course Outcome (COs):
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Course |
Learning outcome (at course level) |
Learning and teaching strategies |
Assessment Strategies |
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Paper Code |
Paper Title |
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FMG -617 |
Risk Analysis and Portfolio Management
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CO227 To familiarize students with investment process and decision making. CO228 To provide Knowledge of portfolio theoretic concepts including mean-variance measures, portfolio diversification, systematic risk. CO229 Comprehend student with basic techniques of discounting and compounding necessary for valuation of assets. CO230 Provide students with a basic introduction to portfolio theory and study various methods of modeling the risk associated with stock investment such as the capital asset pricing model CO231 To provide insight about the relationship of the risk and return and how risk should be measured to bring about a return according to the expectations of the investors
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Approach in teaching: Interactive Lectures, Discussion, Tutorials, Practical cases Demonstration, Power point presentation. Learning activities for the students: Self learning assignments, Effective questions, Seminar presentation, Live practical problems analysis |
Class test, Semester end examinations, Quiz, Solving problems in tutorials, Assignments, Presentation, Individual and group projects, Case Study Analysis |
Introduction to investments:
Investment-meaning & Definition, Process of investing, Investment objectives, Investment attributes, Factor influencing Investment decisions,
Importance of investment management
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
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.
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
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.
• 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.
• 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.
