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Subject Faculty


Module Aims: The basics of investments and different forms of securities of the stock markets, the functioning of the secondary markets and how investors go about buying and selling the stocks. The different aspects of Security analysis, practical dimensions of the risk involved in the stock market investments and the quantitative terms, the assessment of the value of bond and stock. Efficient markets theory, different approaches to portfolio construction, the techniques adopted to minimize the risks, the methods of evaluating the portfolio and strategies used to revise the portfolio. COURSE OBJECTIVE: Upon completion of this course, the student should be able to: Portfolio Management is on how investors analyze different companys securities in comparison with others on the security market. To acquaint the students with the working of security market and principles of security analysis; To develop the skills required for portfolio management so as to be able to judge the competitive position of firms in capital market and review the related business decisions. SYLLABUS Unit I INTRODUCTION TO INVESTING Investment Choices and Alternatives - Forms of Investment - Investment in Financial Assets; Money market and Capital Market Investment Instruments; Investment Objectives; Investment- Return and Risk; Financial Assets v/s Real (Physical) Assets . Unit II INDIAN & GLOBAL STOCK MARKETS Investment Market; Primary and Secondary Markets;; New Issue Market; Listing of Securities; Operations of India Stock Market; Cost of Investing in Securities; Stock Market Indexes - Uses of Security Market Indices - Method of Computing stock market indices - An overview of popular stock Market Indexes. Understanding Risk and Return - Types of Risks Components of Return - Relationship between Risk and Return (CAPM) - Risk and Return of a single asset - Risk and Return of a Portfolio Variance Standard Deviation - Covariance Correlation.

Unit III SECURITY ANALYSIS & VALUATION Security Analysis - Fundamental Analysis Fundamental Analysis; Valuation Theories of Fixed and Variable Income Securities Risk Analysis in Investment Decision; Systematic and Unsystematic Risk; Stock Market Analysis- Technical Approach; Efficient Market Theory; Weak and Semi-strong form of Efficient Market; Investment decision making under Efficient market Hypothesis; Technical Analysis - Valuation of Securities - Bond Valuation Types of Bonds Bond Theorems Nominal Yield Current Yield Yield to Maturity Yield to Call - Valuation of Equity Shares Dividend Discount Model DCF Model. Portfolio Theory Markowitz Portfolio Theory - Asset Pricing Model - Multifactor Models of Risk and Return Construction of a portfolio. Unit IV PORTFOLIO CONSTRUCTION, MANAGEMENT & MUTUAL FUNDSPortfolio Theory - Markowitz Portfolio Theory - Asset Pricing Model - Multifactor Models of Risk and Return - Construction of a portfolio. Mutual Funds - Structure of Mutual Funds Advantages Disadvantages Types of Mutual Funds - Regulations on Mutual Funds Unit V PORTFOLIO PERFORMANCE EVALUATION-Portfolio Performance Evaluation - Sharpe Measure - Treynors Measure - Jensons Measure - International Investment and Diversification - Risk Management using-Derivatives Texts: Fisher, Donald E,(2005) , Security Analysis and Portfolio Mgt - Prentice Hall. Alexander, Gordon J. and Sharpe William F (2001). Fundamentals of Investments. Prentice Hall Options & Futures An Indian Perspective D.C. Patwari & Anshul Bhargava Jaico Books. Avadhani, V.A. Investment Management Mumbai Himalaya Pub. Futures Markets Made Easy with Q & A Sunil K. Parameswaran Tata Mc Graw-Hill Professional. Robert A. Strong., (2005), Portfolio Management HandBook Jaico Books. Avadhani, V.A. Investment Management Mumbai Himalaya Pub. Bhalla, V.K., (2001), Investment Management: SAPM S. Chand. Reuben Advani, The Wall Street MBA Tata McGraw-Hill Pub. Francis, Jack Clark Management of Investments Student ed New Delhi McGraw Hill. Fisher, Donald E, (2005), Security Analysis and Portfolio Mgt - Prentice Hall. Cliffs,(1989), New Jersey, Prentice Hall Inc. 1989; Elton, Edwin J and Gruber, Martin J. (1984) Modern Portfolio Theory and Investment Analysis, New York, John Wiley; Fuller, Russell J. and Farrell, James L.(1993) Modern Investment and Security Analysis, New York, McGraw Hill Haugen, Robert H, (1987), Modern Investment Theory. Englewood Cliffs, New Jersey, Prentice Hall Inc. Huang, Stanley S C and Randall, Maury R. (1987) Investment Analysis and Management, London, Allyn and Bacon, London.

Lee, Cheng F. etc. (1990) Security Analysis and Portfolio Management. Scott, Foresman. Markowitz, Harry M. Mean. (1987) Variance Analysis in Portfolio Choice and Capital Markets, London, Basic Blackwell.