Item 69/34 - Annexure - 31

Course Code Course Title L T P C

Security Analysis and Portfolio
BHUM222L 3 0 0 3
Management
Pre-requisite NIL Syllabus version
1.0
Course Objectives
1. To create awareness about functions and structure of financial markets and
institutions
2. To make students understand the nuances of investment decision making
3. To achieve investment advisory skills
Course Outcomes
Upon successful completion of the course students will be able to
1. Describe the linkages between Macroeconomic environment and financial
markets.
2. Explain theoretical foundations of financial markets.
3. Demonstrate skills in financial statement analysis.
4. Apply financial security analysis.
5. Execute portfolio construction and evaluation techniques.
6. Demonstrate professional investment advisory skills.
Module:1 Macroeconomics and Financial Market 6 hours
Financial Markets and the Economy- Economic Growth, Business Cycles, Inflation,
Interest Rates, Commodity Prices. Monetary and Fiscal Policy. Global Economic
Indicators. Financial Market - Instruments – Institutions - Regulatory Framework.
Trading: Trading mechanics – Types of Orders – Margins.
Module:2 Investment Theories 7 hours
Risk and Return – Mean, Variance, Covariance and Standard Deviation. Efficient
Market Hypotheses- Random Walk – Modern Portfolio Theory – Dow Theory.
Mean – Variance Portfolio Theory - Beta – Capital Asset Pricing Model (CAPM).
Security Market Line (SML) Efficient Frontier. Portfolio Models. Index Models –
Single and Multi -Index Models. Fama- French Model.
Module:3 Financial Statement Analysis 6 hours
Financial Statements – Standalone Vs Consolidated – Analysis of Balance Sheet,
Profit and Loss and Cash flow Statement. Ratio Analysis – Investment Related
Ratios (Return, Operating and Profitability Ratios). Common size and Comparative
size Statement Analysis.
Module:4 Fundamental and Technical Analysis 5 hours
Economy – Industry - Company Analysis - Top down approach-Value investing
principles - Short term vs Long term investing - Qualitative and Quantitative
factors. Valuation models. Technical Analysis - Chart Types – Candle Chart, Bar
Chart, Line Chart – Chart Patterns – Candle Patterns. Technical Indicators –
Oscillators – Rule Based Trading Strategies.
Module:5 Equity Valuation 7 hours
Cost of capital – Weighted Average Cost of Capital (WACC) - Growth estimation
- cash flow estimation – Discounted Cash Flow (DCF) models. Stock Valuation:
Stock Valuation models - Dividend Discount Models, Price-Earnings Ratio, Free
Cash flow - Valuation Approaches.
Module:6 Fixed Income Securities 5 hours
Bonds - Corporate and Government securities - Treasury Securities - Types.
Bond - Yield,

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Maturity and Bond valuation - duration and modified duration - Bond Portfolio
Strategies.
Module:7 Portfolio Management 7 hours
Diversification and Portfolio Risk, Combination of risky assets – Portfolio
possibilities curve. Portfolio Management Process - tools and techniques, Sharpe
Ratio, Jensen Alpha and Treynor Index. Coffee Can Investing. Mutual Funds and
Alternate Investments - Mutual Funds – Classification – Mutual Fund Investments
– Systematic Investment Plan (SIP) - Hedge Funds -
Real Estate Investment Trusts (REITs).
Module:8 Contemporary Issues 2 hours

Total Lecture Hours 45 hours

Text Book(s)
Zvi Bodie, Alex Kane, Alan J. Marcus and Pitabas Mohanty (2019),
1.
Investments, McGrawHill, 11th Edition.
Prasanna Chandra (2021), Investment Analysis and Portfolio Management,
2.
McGraw Hill, 6th Edition.
Reference Books
Frank Reilly and Keith C Brown (2019), Investment Analysis and Portfolio
1.
Management, Cengage, 11th Edition.
Charles P Jones (2016), Investments: Principles and Concepts. Wiley
2.
Finance, 12th Edition. Edwin J Elton, Martin J Gruber, Stephen J Brown and
William N.Goetzmann (2015), Modern Portfolio Theory and Investment
3.
Analysis. John Wiley, 9th Edition.
Mode of Evaluation: CAT, Quiz, Assignment and FAT
Recommended by Board of Studies 23-02-2023
Approved by Academic Council No. 69 Date 16-03-2023

Proceedings of the 69th Academic Council (16.03.2023) 247