SECURITY ANALYSIS & PORTFOLIO MANAGEMENT
Sub Code: 08MBAFM322 IA Marks: 50
No. of Lecture Hours / Week: 04 Exam Hours: 3 Hours
Total no. of Lecture Hrs: 56 Exam Marks: 100
MODULE 1 (4 Hours)
Introduction: Concepts of investment- Financial and non-financial forms of
investment – Objectives of financial investment, investment methods –
Security and non-security forms of investment – Sources of investment
information- Investment Instruments
MODULE 2 (5 Hours)
Financial markets – primary and secondary markets – major players and
instruments in secondary market - Functioning of stock exchanges, trading
and settlement procedures at NSE & BSE.. Stock markets guidelines on
primary & secondary markets.
MODULE 3 (10 Hours)
Valuation of securities – bond and fixed income instruments valuation -bond
pricing theorems, duration of bond and immunisation of interest risk, term
structure of interest rate, determination of yield curves, valuation of equity
and preference shares (Dividend capitalisation & CAPM).
MODULE 4 (7 Hours)
Analysis of risk & return, concept of total risk, factors contributing to total
risk, systematic and unsystematic risk, default risk, interest rate risk, market
risk, management risk, purchasing power risk. Risk & risk aversion. Capital
allocation between risky & risk free assets-Utility analysis
MODULE 5 (9 Hours)
Fundamental & Technical Analysis of equity stock. Concept of intrinsic
value. Objectives and beliefs of fundamental analysts. Economy-Industry-
Company framework, Economic analysis and forecasting. Theory of
Technical analysis, points and figures chart, bar chart, contrary opinions
theory, confidence index RSA, RSI, Moving average analysis, Japanese
MODULE 6 (7 Hours)
Behaviour of stock market prices – The market mechanism, testable
hypothesis about market efficiency, implications of efficiency market
hypothesis for security analysis and portfolio management. Asset pricing
theories, CAPM & Arbitrage pricing theories.
MODULE 7 (7 Hours)
Modern portfolio theory – Asset allocation decision. Dominant & Efficient
portfolio – simple diversification, Markowitz diversification model, selecting
an optimal portfolio – Sharpe single index model. Determination of corner
portfolio. Process of portfolio management – International Diversification.
MODULE 8 (7 Hours)
Portfolio performance evaluation – Sharp & Treynor & Jensen’s measure.
Portfolio revision – Active and passive strategies & formula plans in
portfolio revision. Mutual funds- types, performance evaluation of mutual
funds, functions of Asset Management Companies.
1. Investment Analysis and Portfolio management – Prasanna Chandra
– TMH - 2nd Edition, 2005
2. Investments – Zvi Bodie, & Mohanty – TMH – 6th Edition, 2005
3. Investment Management – VK Bhalla ( S.Chand & Co)
4. Security Analysis & Portfolio Management, S.Bhat, Excel Books.
1. Investment Analysis & Portfolio Management – Reilly – 8/e –
Thamson / Cengage Learning.
2. Security Analysis & Portfolio Management – Fisher and Jordan , 6/e
3. Investment science – David G.Luenberger. Oxford.
4. Alexander, Sharpe, Bailley – Fundamentals of Investment – Pearson
/ PHI, 3/e, 2001
5. Portfolio Management – Barua, Verma and Raghunathan (TMH),
6. Portfolio Management –S. Kevin – Prentice Hall India.
7. Reilley & Brown – Investment Analysis & Portfolio Mgmt. –
Thomson Learning, 7/e, 2004
8. Ranganathan & Madhumathi – Investment Analysis & Portfolio
Mgmt. – Pearson, PHI.
9. V A Avadhani – Securities Analysis & Portfolio Mgmt. – HPH
10. Punithavathy Pandian – Security Analysis & Portfolio Mgmt. –
Vikas, 2/e, 2005
11. Practical Investment Arrangement – Strong – Thomson / Cengage
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