Course Contents Security Analysis and Portfolio Management Course Code: Chapter-I

INTRODUCTION Introduction, Investment versus speculation, Investment process, Security analysis, Portfolio management, Investment categories, Debt instruments, Government debt securities, Short term government debt securities, Longterm government debt securities, Private debt issues, Short term private debt issues, Long term private debt issues, International bond investing, Equity, International equities, Real estate Introduction, Security return, Elements in return, Return measurement, Return calculation, Arithmetic and geometric return, Risks in a traditional sense, Systematic risk, Market risk, Interest rate risk, Purchasing power risk, Unsystematic risk, Business risk, Financial risk, Assigning risk premiums, Stating predictions ‘scientifically, Risk in a contemporary mode, Meaning of beta, Calculating beta, Capital asset pricing model to estimate return, Security market line


2nd Quiz Test


Analytical framework for common stocks, Economic and industry analysis, Economic forecasting and the stock investment decision, Forecasting techniques, Anticipatory (intention) surveys (Delphi method), Barometric or indicator approach, Cyclical-timing classification of indicators, Leading, roughly coincident and lagging indicators, Money and stock prices, Opportunistic model building, an illustration of an economic analysis

3rd Quiz Test


Introduction, Alternative industry classification schemes, Industry classification by product, Standard industry classification, Industry classification according to business cycle, Economy and the industry analysis, Key characteristics in an industry analysis, Past sales and earnings performance, Relative stability of the industry, Attitude of government toward the indus1ry, Labor conditions, Competitive conditions, Stock prices of firms in the industry relative to their earnings, Industry analysis a case study – Restaurant industry, Industry life cycle, Pioneering stage, Expansion stage, Stabilization stage, Decay stage

4th Quiz Test

Chapter V

Introduction, Company (Firm) Analysis, Internal Information: Financial Statements, Income Statement, Balance Sheet, Balance Sheet Equation, Changes in Balance Sheet, Common Size Balance Sheet, Common Base year Balance Sheet, Combined Asset Balance Sheet, Components of Income Statement: Common Size Income Statement, Common Base Year Income Statement, Depreciation Accounting: Impact of Depreciation on Income Taxes, Earnings per share

5th Quiz Test

Chapter VI

Introduction, Chemistry of earnings, Forecasting asset productivity and earnings, Role of financing in earnings (leverage), Debt financing and earnings, Categories of debt financing and earnings, Return on equity (EBT), impact of fund mixing on EBT, impact of fund mixing and ROR on equity, Impact of issuing new share at different prices, Impact of sinking share, Role of retained income in earning, Forecasting and the earnings model, Break-even analysis,

6th Quiz Test

Chapter VII

Introduction, traditional portfolio analysis, Utility of portfolios, Diversification, Effects of combining securities, Portfolio risk, Portfolio effect in the two-security case, changing proportions of x and y, Changing the coefficient of correlation, graphic illustration of portfolio effects, Three-security case, Risk-return in a three-security portfolio, The n security case, the Sharpe Index Model: Risk-return in the Sharpe Model, Portfolio analysis: An example

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