Dr. D. Y.

Patil Pratishthan’s
D.Y. Patil Institute of Master of Computer Applications and Management
Sector No.29, Pradhikaran, Nigdi, Pune – 411044 Tel No: 020-27640998, 202737393, Fax no: 27653054
(Approved by the AICTE, Recognized by DTE (Mah) and affiliated to Savitribai Phule University of Pune)

PGDM Program

Semester II Specialization Finance

Course Code FIN 3 Type Elective
Course Title Investment Analysis

Course Objectives:
1 To Understanding of the overall investment process and the key elements involved
in the investment process, such as asset allocation and security selection.
2 To Basic understanding of the services provided by mutual funds, and the ability to
identify sources of information on investment companies.
3 To analyse skills to calculate potential profits resulting from various option trading
strategies and to formulate portfolio management strategies to modify the risk-
return attributes of the portfolio

Syllabus
Unit Contents
No.
Objectives of Investment Decisions -Introduction, Types of Investors,
Constraints, Goals of Investors.
Basics of risk and return: concept of returns, application of standard
1 deviation, coefficient of variation, beta, alpha. Bonds : present value of a bond,
yield to maturity, yield to call, yield to put, systematic risk, price risk, interest
rate risk, default risk.
Financial Markets (Introduction, Primary & Secondary Markets, Trading in
2 Secondary Markets, The Money Market, Repos and Reverses, The Bond Market,
Common Stocks, etc.)
Fixed Income Securities (Introduction : The time value of Money, Simple and
Compound Interest Rates, Real and Nominal Interest Rates, Bond Pricing
3
Fundamentals, Bond Yields, Interest Rates, Macaulay Duration and Modified
Duration, etc.)
Financial Analysis and Valuation (Introduction, The Analysis of Financial
Statement, Financial Ratios, The Valuation of common Stocks, Technical
4 Analysis)Valuation of Derivatives (Introduction, Forwards and Futures, Call and
Put Options, Forward and Future Pricing, Option Pricing, Black-Scholes Formula,
etc.)
 Dr. D. Y. Patil Pratishthan’s
D.Y. Patil Institute of Master of Computer Applications and Management
Sector No.29, Pradhikaran, Nigdi, Pune – 411044 Tel No: 020-27640998, 202737393, Fax no: 27653054
(Approved by the AICTE, Recognized by DTE (Mah) and affiliated to Savitribai Phule University of Pune)

PGDM Program

Investment Management (Introduction, Investment Companies, Active vs. Passive

Portfolio Management, Costs of Management : Entry/Exit Loads and Fees, Net Asset
5 Value, Classification of Funds, Other Investment Companies, Performance
Assessment of managed funds, etc.)

Further Reading-
1. Fischer, D.E. andJordan, R.J.Security Analysis andPortfolio Management. Pearson Education
2.Prasanna Chandra.Investment Analysis and Portfolio Management.Tata McGraw Hill
Education Private Limited
3.Ruey S. Tsay (2005). Analysis of Financial Time Series (2nd ed.). John Wiley.
4.John C. Hull. Options, Futures and Other Derivatives (7th ed.). Pearson Education
Readings:
1 .JurgenFranke, Wolfgang Hardle and Christian Hafner. Introduction to Statistics of Financial
Markets.
2. R. Madhumathi, M. Ranganatham. Derivatives and risk management (1st ed.) Redhead, K.
Financial Derivatives- An introduction to futures, forwards, options, swaps. Prentice Hall of
India