1. : Master of Commerce (M.
Com)
2. Department : Commerce
3. Course Title : Security Analysis & Portfolio Management
4. Course Code : 576 EE 45
5. Course Duration : Semester
6. Lecturer Hours per Week : 4
Tutorial Hours per week : -
Practical Hours per Week : -
7. Course Credit : 9
8. Methods of Assessment : Assignments 20%
Continuous Assessment Test 20%
End Semester Examination 60%
9. Course Description :
This course includes fundamentals of security valuation, the functioning of capital markets,
optimal portfolio construction, elements of investor psychology, performance evaluation, and
risk measurement. We’ll emphasize stocks, but other investments such as fixed income
securities and financial derivatives will also be considered.
10. Aim of the Course :
The course aims to impart knowledge on how to analyze securities and to construct and manage
a collection of investments (portfolio).
11. Learning Objectives :
At the end of the course students will be able to:
i. Explain Set investment objectives, identify the sources of investment information and investor
protection;
ii. Follow the compliance requirements laid down by SEC;
iii. Calculate the intrinsic value of a security using the fundamental analysis techniques;
iv. Analyze and interpret the charts on stock market performance;
v. Apply portfolio theory for portfolio construction and evaluation. To be evaluate the
performance of a Mutual Fund.
12. Topics of Study :
Unit I
Introduction to investments - Nature and scope of investment decision - investment planning &
policy, investment process – Investment alternatives - Govt. Securities - Money market
instruments - equity bonds- mutual funds model derivative instruments - futures - options -
commodity futures, index futures - stock futures - hedge funds. Risk and return, Asset allocation
and security selection. Impact of fiscal & monetary policy on investments, comparison of
investment products.
Unit II
Operations of Malawian stock market and Bond markets, new issue market - Book building
process - listing - secondary market - online trading - dematerialization - Depository services -
Mechanics of investing - mutual fund types - performance evaluation.
Unit III
Valuation of fixed income securities - Bond valuation and yields - Bonds duration and yield
analysis - Term structure theories - Common stock valuation - different valuation models -
dividend and value of options, discounted cash flow models, pricing, earnings rating, and
valuation of options. Binomial option pricing model - Black scholes option model.
Unit IV
Security Analysis - Fundamental Analysis - Economic Analysis - Industry analysis - company
analysis measuring earnings, forecasting earnings, applied valuation technical analysis – theory –
flow theory, efficient market hypothesis.
Unit V
Portfolio-Introduction - Markowitz portfolio theory - mean variance criterion (MVC) – Nature of
investment risk - MVC and portfolio selection - portfolio of two moky securities – AS security
portfolio - Application of market model in portfolio construction, CAPM, APT - constructing the
efficient frontier - constructing the optimum portfolio – portfolio performance evaluation
13. Mode of Assessment :
Attendance is Compulsory. A student should secure 85% of attendance in the course to be
eligible for appearing End Semester Examination. Minimum 2 assignments carrying 10 marks
each shall be submitted for evaluation (Refer Assignment Policy). 2 Continuous Assessment
Test covering 2.5 units are conducted at 6th week and 12th week respectively for 10 marks each.
There shall be a End Semester Examination at the end of 15 th week covering all 5 units for a 3
hour duration and evaluated for 60 marks. (Refer Examination Guidelines).
14. Prescribed Textbooks :
1. Sasidharan K/Alex K Mathews, 2013, Security Analysis and Portfolio Management, Tata
McGraw Hill Education Private Limited, New Delhi.
2. Punithavathy Pandian, 2013, Security Analysis and Portfolio Management, Vikas Publishing
House Pvt Ltd, New Delhi
3. Kevin S, 2015, Security Analysis and Portfolio Management, Prentice-Hall of India Pvt.Ltd,
New Delhi.
4. Falguni H. Pandya, 2013, Security Analysis and Portfolio Management, Jaico Publishing
House.
5. Punithavathy Pandian, 2012, Security Analysis and Portfolio Management, Vikas Publishing
House, New Delhi.
15. Reference Materials :
1. Dr. Vanita Tripathi, 2016, Security Analysis and Portfolio Management, Taxmann
Publications Pvt. Ltd.
2. Rohini Singh, 2009, Security Analysis and Portfolio Management, Excel Books, India.
3. Thomas S, 2013, Security Analysis and Portfolio Management, Prentice Hall India Learning
Private Limited, New Delhi.
4. Dr. Sharma F.C, 2015, Security Analysis and Portfolio Management, SBPD Publications, New
Delhi.
5. Sudhindra Bhat, 2008, Security Analysis and Portfolio Management, Excel Books, India.
