Investment Management & Portfolio Analysis (Functional Electives Finance)

Paper Code: 
MBF-421
Credits: 
4.0
Contact Hours: 
40.00
Max. Marks: 
100.00
Objective: 
  • To develop an understanding of practices of investment analysis and management in business context. 
  • To develop the students’ ability to use financial information in business analysis and manage return on investment.
  • To understand various practices of capital market research theory and use of information in pricing financial instruments.
  • To familiarize the students with the current models of research and evaluation in the Investment market.
8.00
Unit I: 
Investment : An introduction

Concept of investment-investment objectives, characteristics of investments, investment avenues, Motives of investment, Types of investors, investment vs. speculation, investment v/s gambling, and gambling v/s speculation.

9.00
Unit II: 
Pricing and Valuation of securities

Valuation of Equity- one year holding period, multiple year holding period, constant growth model, multiple growth model, dividend discount models
Valuation of Bonds: Coupon Rate, Current Yield and Yield to Maturity

6.00
Unit III: 
Introduction to portfolio management

Need for portfolio management and Portfolio Management Process & Analysis. Expected Return of a Portfolio, Risk of a Portfolio, Asset allocation process, types of asset allocation

9.00
Unit IV: 
Models for portfolio management

Markowitz model, Sharpe’s Single Index Portfolio Selection Method, Capital Asset Pricing Model, Arbitrage Pricing Theory

8.00
Unit V: 
Analysis for performance evaluation

Fundamental Analysis- Economic analysis, Industry analysis, Company analysis and Technical analysis- Dow Theory, Support and Resistance Level.

Essential Readings: 
  • Investments, William F Sharpe, Gordon J Alexander, and Jeffery V Baily, Sixth Edition. Prentice Hall, 6th Edition,2009.
  • Security Analysis and Portfolio Management by Donald E Fisher and Ronald J. Jordon, Prentice Hall, 6th Edition,2009
  • Investment Analysis and Portfolio Management, Prasanna Chandra, Tata McGraw Hill, 3rd Edition, 2009.
  • Modern Portfolio Theory and Investment Analysis by Elton & Guper, John Wiley, 2008.
  • Investments Analysis and Behavior by Mark Hirschey and John Nofsinger, McGraw- Hill, 2008
References: 
  1. Investments, Zvi Bodie, Alex Kane, Alan J Marcus, Pitabas Mohanty, McGraw Hill, 8th Edition,2009
  2. Security Analysis and Portfolio Management, Excel Books,2009
  3. The 7 Deadly Sins of Investing: How to Conquer Your Worst Impulses And Save Your Financial Future, Maury Fertig, Amacon, 2006