SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT
Course Code ECO209B
Course Category Foundation course
Course Title Security Analysis and Portfolio Management
Teaching Scheme and Credits L T Laboratory Credits
Weekly load hrs 2 - -- 2
Pre-requisites: Basic knowledge of Financial Markets
Course Objectives: The course intends to offer the understanding of investment and portfolio
management process. It would enable the students to assess various securities and design a
portfolio.
To understand investment scenario and evaluate various investment alternatives
To enhance portfolio management skills
To learn how to apply fundamental analysis and technical analysis for designing a portfolio
To learn to assess the portfolio risk and return
1. Knowledge (i) Knowledge of various securities and their returns
(ii) Understanding of portfolio management practices
2. Skills (i) Computational skills
(ii) Decision making under dynamic business environment
3. Attitude(i) Risk attitude
(ii) Money attitude
Course Outcomes:
1. It will present an overview of types of securities and their risk and return dynamics.
2. It will equip the students with a set of tools, which would help them to manage and
evaluate portfolios.
3. It will give the students insights into dynamics of equity and bonds market.
Course Contents:
1. Introduction to Investment and Securities -Investment v/s speculation, various asset classes,
risk and return analysis
2. Valuation of Securities- valuation of equity and bonds, fundamental analysis, technical
analysis
3. Portfolio Management Theory- Modern portfolio theory, CAPM, Sharpe Index model
4. Portfolio Management and evaluation- Measures of portfolio evaluation and portfolio
management practices
Learning Resources:
Reference Books:
Pandian Punithavathy . Security Analysis and Portfolio Management , Vikas Publication
Chandra Prasanna , Investment Analysis and Portfolio Management , McGraw Hill Publication
Talwar Shalini ,Security Analysis and Portfolio Management , Cengage Publication
Supplementary Reading:
Fischer Donald E. & Jordan Ronald J., Security Analysis and Portfolio Management, Prentice Hall
of India.
Elton Edwin J. & Gruber Martin J., Modern Portfolio Theory and Investment Analysis, John
Wiley & Sons
Dalal Street Investment Journal
Financial Planning Journal
Capital Market
Web Resources:
1.https://www1.nseindia.com/products/content/derivatives/equities/about_equity_der.htm
2.https://www.bseindia.com/markets/Derivatives/DeriReports/folist.aspx
Pedagogy:
Case discussion, participative learning, discussions, assignment, practice problem solving,
conceptual and contextual learning.
Assessment Scheme:
Class Continuous Assessment (CCA) (60 % weights)
Faculty will choose the following components for the Continuous Assessments
Assignments
Test
Presentation
Case Study
MCQ
Oral
Others
Term End Examination : (40 % weights)
Modul Workload in Hrs
e Contents Theor Cas
Assess
No. y e
Introduction to Investment and Securities
Individual Investor Life cycle, investment, speculation and
gambling, Investment planning and various avenues of investment
Investment scenario-, Primary & Secondary market, Stock market
1 5 1 -
indices, BSE, NSE & SEBI
Risk and Return- mean, expected return, standard deviation,
coefficient of correlation and covariance. Diversification of Risk,
Systematic and Unsystematic risk, calculation of beta
2 Security Valuation 6 1 1
Equity valuation models- Dividend discount models, Free cash
flow model, Price-Earning approach
Valuation of bonds- Debt Instruments, Bond characteristics, bond
yield, risks in bonds, relationship between bond prices and interest
rates, yield curve, Bond valuation
Fundamental and Technical analysis
Fundamental analysis- Industry analysis, company analysis and
macroeconomic analysis
Technical analysis- Basic concepts and underlying chart analysis, 6 2 -
3
Dow’ theory, Random walk theory, Basic tools, charts, relative
strength, moving averages, Relative strength analysis, moving
average analysis,
Portfolio Management Theory
Modern Portfolio Theory- Markowitz Risk-Return Optimization,
Efficient Frontier
Sharpe’s Single Index Model
4 6 1 1
Efficient market Hypothesis & modern portfolio management,
Capital Asset pricing Model
Mutual Fund Portfolio, Sharpe, Treynor Measure, Jensen’s Alpha
Portfolio revision - Active v/s Passive portfolio management
