II YEAR – III SEMESTER

COURSE CODE: 7MBA3EB

ELECTIVE COURSE – FINANCE-

SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT

Unit I 

Meaning of investment – Speculation and Gambling – Investment avenues - Types of investors – Investment objectives – The investment process – Security Analysis – Meaning of security – Types of securities – Meaning of security analysis  

Unit II            

Economic Analysis – Economic forecasting and stock Investment Decisions – Forecasting techniques. Industry Analysis – Industry classification. Economy and Industry Analysis. Industry life cycle – Company Analysis Measuring Earnings – Forecasting Earnings – Applied Valuation Techniques – Graham and Dodds investor ratios.

Unit III          

Fundamental Analysis Vs Technical Analysis – Charting methods – Market Indicators. Trend– Trend reversals – Patterns – Moving Average – Exponential moving Average – Oscillators – ROC Momentum – MACD – RSI.

Unit IV            

Portfolio Analysis – Selection and Evaluation – Meaning of portfolio – Reasons to hold portfolio – Diversification analysis – Markowitz’s Model – Assumptions – Specific model – Risk and return optimization – Efficient frontier – Efficient portfolios – Leveraged portfolios – Corner portfolios. 

Unit V            

Capital Market Theory - CAPM theory and assumptions - CAPM Model – Arbitrage Pricing Theory – assumptions – APT Model . Financial Derivatives – Meaning and Definition – Futures and Options.