SAPM-W07

SAPM-W07
(PGDM PT-W 2007-10 : Term-IX)

Security Analysis and Portfolio Management
(Faculty: Munmun Mohanty)

Course Outline

Objective:

This course is concerned with the characteristics and analysis of individual securities, as well as with the theory and practice of optimally combining securities into portfolio. The course starts with a discussion on fundamentals of investment to present students taking their first course in investments with the basic building block of modern investment thought. The course then proceeds to discuss how the characteristics of portfolio are significantly different from which they are formed. The discussion then shifts to equilibrium in capital market. Subsequently, the course discusses the concept of market efficiency and the tests to see the level of efficiency of capital market. Towards the end the course focuses on evaluating performance of portfolio and a brief discussion on international diversification.

Readings:
a) Modern Portfolio Theory and Investment Analysis, Elton and Grubber, John Wiley & Sons
b) Fundamentals of Investment, Alexander, Sharpe and Bailey, Prentice Hall of India.
c) Investments, Bodie, Kane, Marcus and Mohanty, Tata McGraw Hill Publications
d) Class ppt printouts
e) Readings as and when made available in class

Tentative Session Plan :

Session	Topics Covered
1,2	Introduction : · Investment Environment · Instruments of Investment · Trading of Securities
3,4	Portfolio Analysis · The characteristic of opportunity set under risk · The efficient set · Concavity of Efficient set · Diversification
5	Selecting the optimal portfolio
6	Capital Allocation between risky assets and risk free assets
7,8	Equilibrium in Capital Market · Capital Asset Pricing Model · Index Models · Arbitrage Pricing and Multi factor models
9,10	Security Analysis · Macroeconomic and Industry Analysis · Equity Valuation Models · Financial statement analysis
11	Technical Analysis
12	Market Efficiency and Behavioural Finance
13	Portfolio performance evaluation
14	International diversification

Pedagogy :

Interactive class lectures, numerical problem solving, short case analysis, and other assigned readings. Assignments will be given to students on a regular basis after class sessions, and students would be expected to come prepared with the assignments in the next class.

Evaluation:

The evaluation process is divided into three components.

(a) Mid term : 40%

consisting of quizzes, assignments, and Closed Book Exam to be conducted at the end of about the 8th session

(b) End Term: 50%

The end term examination will again be a closed book one based on topics covered during the

entire course

c) Class Participation :

10%

Created By: Bijoy Kar on 04/22/2010 at 05:44 PM
Category: ExPGP-NR-III Doctype: Document

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