UNIVERSITY OF MADRAS
M.Com. (GENERAL) DEGREE PROGRAMME
SYLLABUS WITH EFFECT FROM 2023-2024
First Year Elective –I A Semester I
Marks
Inst. Hours
Category
Course
Credits
External
Title of the Course L T P O
Total
CIA
Code
SECURITY ANALYSIS 6 - - - 4 6 25 75 100
413E1A AND PORTFOLIO
MANAGEMENT
Learning Objectives
1. To become familiar with various Investment avenues and Portfolio Construction
2. To understand the Equity Shares, Preference Shares and Bonds valuation models
3. To learn about long-term and short-term investment analysis tools.
4. To analyse with Portfolio theories.
5. To gain knowledge in Portfolio performance methods.
Course Units
UNITI (18 hrs)
Investment and Portfolio Management
Investment – Meaning – Nature and scope of Investment – Investment vs Speculation –
Type of Investors – Investment Avenues – Factors influencing the investment choice –
Portfolio Management: Meaning and significance, Active Vs. Passive portfolio
management - Strategic Vs. Tactical asset allocation - Factors Affecting Investment
Decisions in Portfolio Management.
UNIT II (18 hrs)
Valuation of Securities
Bond: Introduction – Reasons for issuing Bonds –Features of Bond – Types of Bonds –
Determinants of bond safety –Bond Prices, Yields and Interest Rates –Measuring Price
Volatility of Bonds–Macaulay Duration and Modified Duration - Preference Shares:
Introduction – Features of Preference Shares – Preference Shares Yield – Holding Period
Return – Yield to Call –Concept of Present Value – Equity Share Valuation Models.
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UNIVERSITY OF MADRAS
M.Com. (GENERAL) DEGREE PROGRAMME
SYLLABUS WITH EFFECT FROM 2023-2024
UNIT III (18 hrs)
Fundamental Analysis and Technical Analysis
Fundamental Analysis: Objectives – Economic Analysis, Industry Analysis, Company
Analysis –Technical Analysis: Meaning– Assumptions – Pros and cons of technical
analysis–Differences between fundamental analysis and technical analysis – Dow Theory
– Types of Charts – Chart Patterns – Trend Analysis – Support Line and Resistance Line
– Volume Analysis – Indicators and Oscillators – Simple Moving Average – Exponential
Moving Average – Relative Strength Index – Bollinger Band – Elliott Wave Theory.
UNIT IV (18 hrs)
Efficient Market Hypothesis
Efficient Market Hypothesis – Markowitz Model, Arbitrage Pricing Theory – Sharpe’s
Single index portfolio selection method – Capital Asset Pricing Model (CAPM).
UNIT V (18 hrs)
Portfolio Performance Evaluation
Portfolio Performance Evaluation – Meaning - Need for Evaluation - Methods of
calculating Portfolio return - Sharpe’s Ratio - Treynor’s Ratio - Jensen’s Differential
Returns - Portfolio Revision - Need for Portfolio Revision - Formula Plans.
Course Outcomes
Students will be able to
CO No. CO Statement Knowledge
level
CO 1 Examine investment options and structure a portfolio K4
Assess the value of Equity Shares, Preference Shares and K5
CO 2
Bonds
Examine stock performance through fundamental and K4
CO 3
technical analysis
CO 4 Examine the various Portfolio Theories. K4
CO 5 Evaluate the portfolio performance. K5
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UNIVERSITY OF MADRAS
M.Com. (GENERAL) DEGREE PROGRAMME
SYLLABUS WITH EFFECT FROM 2023-2024
Books for study:
1. Prasanna Chandra (2021), “Investment Analysis and Portfolio Management”, 6th Edition,
McGraw Hill, Noida, UP
2. Rustagi RP (2022), “Investment Analysis and Portfolio Management”, 5th Edition,
Sultan Chand & Sons, New Delhi
3. Bhalla V.K. (2019), “Investment Management”, 19th Edition, S.Chand& Co. Ltd., New
Delhi
Books for reference:
1. Donald E. Fischer, Ronald J. Jordan, Ashwini. K. Pradhan (2018), “Security Analysis
Portfolio Management”, 7thEdition, PearsonPublication Pvt.Ltd., India, Noida
2. AvadhaniV.A. (2016), “Securities Analysis and Portfolio Management”, 12thEdition,
Himalaya Publishing House, Mumbai
3. Ranganathan M. and Madhumathi R (2012), “Security Analysis and Portfolio
Management”,2ndEdition., Pearson Education India Pvt Ltd, Noida
4. Punithavathy Pandian (2019), “Securities Analysis and Portfolio Management”,
Himalaya Publishing House, Mumbai
5. Subrata Mukherjee (2021), “Security Analysis and Portfolio Management”, S.Chand&
Co. Ltd, New Delhi
Web references:
1. https://www.iare.ac.in/sites/default/files/lecture_notes/IARE_SAPM_Lecture_Notes.pdf
2. https://www.studocu.com/in/document/galgotias-university/equity-portfolio-
management/portfolio-management-lecture-notes-1-10/17701348
3. https://www.educba.com/fundamental-analysis-vs-technical-analysis
Note: Latest edition of the books may be used
Mapping of course outcomes with POs and PSOs
Pos PSOs
1 2 3 4 5 6 1 2 3
CO1 3 3 1 3 2 3 2 2 3
CO2 3 3 1 3 2 3 2 3 2
CO3 3 3 2 3 2 3 2 3 2
CO4 2 3 1 3 2 2 2 3 2
CO5 3 3 1 3 2 2 2 3 2
High – 3 Medium – 2 Low – 1
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