Course Outline

Security Analysis and Portfolio Management

Term -4
MBA (2020 – 22) General

PHONE WEB
Corporate Office: Plot # 1267, Gateway Jubilee 040 4444 8888 www.woxsen.edu.in
Road # 36, Jubilee Hills, Hyderabad - 500033
India
 Faculty Name Dr. Neha Gupta
Email ID neha.gupta@woxsen.edu.in

Brief Description and Relevance of the Course

This course introduces students to the analysis of financial securities and helps them in undertaking
investment decisions. The focus of the course is to give an insight into evaluation and analysis of a wide
range of financiall securities and thereby developing techniques for designing an optimal portfolio. After
completion of the course, the students will be able to distinguish various classes of financial securities
such as stocks, bonds, and derivatives based on their risk
risk-return
eturn profiles and other characteristics and
analyse and value these instruments through various techniques. This course will help students in carrying
out fundamental technical analysis by identification of chart patterns which would help in developing
skills for risk management. The course would also help in better interpretation of the business newspaper
and articles thereby enhancing general awareness about domestic economy and global markets.
markets

Programme ILOs Addressed

ILO
Critical Thinking
Data Orientation
Application of Funds
Planning and Execution
Definition
Apply knowledge of management theories and practices to solve business problems
Develop Analytical and critical thinking abilities for data
data-based decision making.
Analyse the financial implication of decision making and allocate investments judiciously
Ability to plan, organize and execute operations

Course ILOs

Course ILO Mapping to Programme ILO

CILO 1: Understanding basic concepts of analysis of
investments and portfolio management Critical Thinking
CILO 2: Ability to critically analyse the investing decision and Critical Thinking, Data Orientation,
Orientation Application of Funds
carrying out evaluation of portfolio performance
CILO 3: Ability to plan and execute financial decisions related to Planning and Execution, Application of Funds
investing decisions in various securities
CILO 4: Ability to value the firms// securities and understand the Data Orientation, Critical Thinking
risk measures.

Reading Material Recommended

Code Textbook/Article/Report Name Edition/Year CILO Mapped

TB1 Reilly Frank K. and Keith C. Brown, 10thEd., Cengage CILO 1,2,3 and 4
Analysis of Investments & Learning
Management of Portfolios
TB2 Chandra Prasanna, Investment 5th Ed., McGraw Hill CILO 1,2,3 and 4
Analysis and Portfolio Management

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Session-Wise Topics and Reading/References
/References

Sn. Topic Session Intended Learning Outcome CILO Reading Material Code
1 Introduction to Introduction to investments
investments, Portfolio CILO 1 TB1 – Chapter 1
investments Management process, Approaches to
investment decision, speculation

2 Risk and Return securities and its various types, CILO 1 TB1 – Chapter 1, 4 and 5
functioning of security markets, indexes
and their calculations, types of orders,
trading mechanism, common stock
exchange problems, margin trading
3 Risk and Real Risk free rate, Risk premium, CILO 1 TB1 – Chapter 1; TB2-
Return expected rate of return Chapter 4
4 Risk and Security Market Line, Factors affecting CILO TB1-- Chapter 1
Return market conditions 1and 4
5 Investment Markowitz Portfolio theory, portfolio risk CILO 1 TB1-- Chapter 7
theories and return
return, Optimal portfolio, Efficient and 2
frontier
6 Asset Pricing Capital Asset Pricing Model, Arbitrage CILO 1 TB1-- Chapter 8, TB2-
models Pricing Theory, systematic risk, Chapter 8
diversification
diversification, assumptions
7 Market Efficient Market hypotheses, weak, semi CILO 1 TB1-- Chapter 6, TB2-
Efficiency strong, strong Chapter 9
8 Behavioural Biases, Heuristics, Market inefficiency, CILO 1 TB1-- Chapter 6, TB2-
Finance Implications Chapter 10
9 Valuation of Time value of money, future value, CILO TB2-- Chapter 5
Financial present value, Annuity, gratuity, 1and 4
Instruments discounting
10 Valuation of Analysis and Valuation of Bonds, Present CILO TB1-- Chapter 18
Financial Value Model, Bond yield, Duration 1,3 and
Instruments Measures 4
11 Valuation of Modified Duration and Bond Price CILO TB1-- Chapter 18, 10
Financial Volatility, Financial statement analysis, 1,3 and
Instruments ratio analysis, Dupont analysis 4
12 Fundamental Financial statement analysis, ratio CILO TB1-- Chapter 11
Analysis analysis, Introduction to security 1,2,3
valuation, valuation of preferred stock, and 4
common stock, discounted cash flow
models

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 13 Fundamental Infinite Period DDM and Growth CILO TB1-- Chapter 11
Analysis Companies, Present Value of Operating 1,2,3
Free Cash Flows, Present Value of Free and 4
Cash Flows to Equity, relative valuation
14 Fundamental Macro market Analysis, Earnings CILO TB1-- Chapter 12
Analysis Multiplier Approach, Economic Analysis 1,2,3
and 4
15 Fundamental Industry Analysis, Company Analysis, CILO TB1-- Chapter 13,14
Analysis SWOT Analysis 1,2,3
and 4
16 Technical Assumptions, Rules and indicators, charts CILO TB1-- Chapter 15, TB2-
Analysis and patterns 1,2,3 Chapter 16
and 4
17 Introduction to Forwards, futures, options, put call parity CILO 1 TB1-- Chapter 20, 21 and
derivatives 22
18 Evaluation of Treynor Portfolio Performance Measure, CILO TB1-- Chapter 24, 25
Portfolio Sharpe Portfolio Performance Measure, 1,2 and
Performance Jensen Portfolio Performance Measure 3
19 Internal Group Presentations CILO _________
Evaluation 1,2,3
and 4
20 Internal Group Presentations CILO _________
Evaluation 1,2,3
and 4

Performance Evaluation Components for the Course

Session No. Marks Evaluation Form CILO

Continuous Evaluation
7 10 Quiz-1 CILO 1
12 10 Quiz-2 CILO 3,4
Assignment
Assignment-1: The project will CILO 1,3 and 4
constitute carrying out economic
analysis, industry analysis and SWOT
16 15
analysis of the industry allotted.
Maximum group members
members-5. A project
report has to be submitted to the faculty.
17 10 Quiz-3 CILO 1
Group Presentations
Presentations: The students have CILO 1,2, 3 and 4
19-20 15 to analyse the company allotted in terms
of stock valuation models and ratio

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 analysis and come up with a decision to
buy/sell the concerned stock. Each group
has to prepare a presentation and share
the insights in the class. Maximum group
members
members-7.
End Term Examination
After Course CILO 2, 3 and 4
40 End Term
Completion

Attendance & Punctuality

Learning is an interactive process. Students are expected to be present in all the classes. Absence is only
appropriate in exceptional circumstances
circumstances.. Voluntary activities are never valid reasons for missing any class.
Students may refer to the student handbook for rregulations covering attendance.
Students who do not meet attendance requirements will not be permitted to write the end term examination and will
be required to repeat the course with the next batch of students.
Late arrival is disruptive to the learning environment; students are expected to be in class lass before the scheduled
commencement time. Students arriving for class after the scheduled commencement time will be turned away
unless they have a valid reason to be permitted to attend
attend.

Copyright
The content provided by the faculty in the class is copy-righted. Students are instructed not to distribute or share
content used during courses with external entities
entities.

Student Code of Ethics

Each student enrolled in this course accepts personal responsibility to uphold and defend academic integrity and to
promote an atmosphere in which all individuals may flourish. The Student
Students’ Code of Ethics strives to set a standard
of honest behaviour that reflects well on students and the school. All students enrolled in these courses are expected
to follow the Students’ Code of Ethics contained in the student handbook.
handbook.Unethical
Unethical and unfair practices adopted by
students may lead to penalties such as having to repeat the course or having the sstudent’s
tudent’s enrollment cancelled.