1
BUS 3.5 (F): SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT (w.e.f. the batch of students admitted 2015-16 ) UNIT-I: Investment: Meaning, Investment vs. Speculation - Characteristics of Investment – Investment Process – Securities Market: Issue of Securities: Initial Public Offer (IPO) – Right Issue - Bonus Issue – Private Placement – Listing – Trading – Settlement. UNIT-II: Valuation of Securities: Basic Concepts: Return, Risk, Intrinsic value – Valuation of fixed income Securities: Debentures and Bonds: Current Yield, Yield To Maturity (YTM), Yield to Call (YTC), Bond Duration – Valuation of Equity: Constant Rupee Dividend model – Constant Growth Model – Multiple Growth Model – Price – Earnings (P/E) Approach - Components of risk – Measurement of Risk: Variance, Standard Deviation, Security Beta. UNIT-III: Approaches to Security Analysis: Fundamental Analysis: Economy, Industry and Company Analysis – Technical Analysis: Dow Theory - Elliot wave – Moving Average, Exponential Average, Oscillators, Rate of Change (ROC), Relative Strength Index (RSI), Moving Average Convergence Divergence (MACD) –Breadth of the Market – Momentum. UNIT-IV: Portfolio Analysis and Selection: Portfolio Return and Portfolio Risk - Modern Portfolio Theory: Markowitz Theory – William Sharpe’s Single Index Model – Capital Asset Pricing Model (CAPM) – Arbitrage Pricing Theory (APT) – Efficient Market Hypothesis (EMH). Unit-V: Portfolio Evaluation & Revision: Methods of Portfolio Evaluation – Sharpe’s, Treynor’s and Jensen’s measures of portfolio performance evaluation - Fama’s decomposition of portfolio return – Portfolio Revision: Need, Constraints, Strategies. Reference Books: 1.Prasanna Chandra, Investment Analysis and Portfolio Management, Tata McGraw Hill education Pvt. Ltd. New Delhi 2. Bhalla VK., Investment Management, S. Chand & Co Ltd, New Delhi 3. Punithavathy Pandian, Security Analysis and Portfolio Management, Vikas Publishing House Pvt. Ltd, New Delhi 4. Kevin S., Security Analysis and Portfolio Management, Prentice Hall of India Pvt. Ltd, New Delhi 5. Donald E.Fischer & Ronald J. Jordan, Security Analysis and Portfolio Management, Prentice Hall of India Pvt. Ltd, New Dehi 6. Amling, Frederic, Investment – An Introduction to analysis and management, Prentice Hall of India, New Delhi. 7.Sharpe, William, FG Alexander, F Bailey, and WC Sharpe, Investment, Prentice Hall of India, New Delhi.
