BA 4001

Security Analysis and Portfolio Management

HBS > Professional Electives > Security Analysis and Portfolio Management
Course ID
BA 4001
Level
Post Graduation
Semester
Semester III

OBJECTIVES:
Enables student to
• Understand the nuances of stock market operations.
• Understand the techniques involved in deciding upon purchase or sale of securities.

UNIT I INVESTMENT SETTING
Financial and economic meaning of Investment – Characteristics and objectives of Investment – Investment process -Types of Investment – Investment alternatives – Choice and Evaluation – Risk and return concepts -Valuation of bonds and stock.

UNIT II FUNDAMENTAL ANALYSIS
Economic Analysis – Economic forecasting and stock Investment Decisions – Forecasting techniques. Industry Analysis : Industry classification, Industr y life cycle – Company Analysis Measuring Earnings – Forecasting Earnings – Applied Valuation Techniques – Graham and Dodds investor ratios.

UNIT III TECHNICAL ANALYSIS
Fundamental Analysis Vs Technical Analysis — Dow theory – Charting methods – Chart Patterns Trend – Trend reversals – Market Indicators -Moving Average – Exponential moving Average Oscillators -RSI -ROC – MACD.

Efficient Market theory – Forms of market efficiency -weak, semi-strong, strong form – Empirical tests of market efficiency -its application.

UNIT IV PORTFOLIO CONSTRUCTION AND SELECTION
Portfolio analysis – Reduction of portfolio risk through diversification – Portfolio risk – Portfolio Selection – Feasible set of portfolios – Efficient set – Markowitz model – Single index model – Construction of optimum portfolio – Multi-index model.

UNIT V 
Capital Asset Pricing model – Lending and borrowing – CML – SML – Pricing with CAPM – Arbitrage pricing theory– Portfolio Evaluation – Sharpe’s index Treynor’s index, Jensen’s index – Mutual Funds – Portfolio Revision.

TOTAL:45 PERIODS

OUTCOMES:
• Understand the concept of investment and identify the investment alternatives to investors
• Learn the nuances of fundamental analyses and technical analyses
• Analyse and evaluate the value of securities
• Explain how to construct an efficient portfolio
• Explore the various methods through which portfolio evaluation could be done

REFERENCES :

1. Donald E.Fischer& Ronald J.Jordan, Security Analysis & Portfolio Management, PHI Learning., New Delhi, 8th edition, 2011.
2. Prasannachandra, Investment analysis and Portfolio Management, Tata McGraw Hill, 2011.
3. Punithavathy Pandian, Analysis & Portfolio Management, Vikas publishing house PVT LTD, second edition, 2013.
4. Reilly & Brown, Investment Analysis and Portfolio Management, Cengage Learning, 9th edition, 2011. S. Kevin , Securities Analysis and Portfolio Management , PHI Learning , 2012.
5. Bodi, Kane, Markus, Mohanty, Investments, 8th edition, Tata McGraw Hill, 2011.
6. V.A.Avadhan, Securities Analysis and Portfolio Management, Himalaya Publishing House, 2013.
7. V.K.Bhalla, Investment Management, S.Chand & Company Ltd., 2012