Portfolio Management

Paper Code: 
MFM 227
Credits: 
4
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 

Course Objectives:

To develop an understanding of practices of Portfolio management in business context.

Course Outcomes(COs):

Course

Learning outcomes (at course level)

Learning and teaching strategies

Assessment Strategies

Paper Code

Paper Title

MFM 227

Portfolio management

CO 89: Understand the concept of portfolio selection.

CO 90: Assess the efficiency level of the financial market.

CO 91: Application of asset pricing models for the selection of securities.

CO 92: Understand portfolio performance measurement.

CO 93: Understand the various theories for technical analysis.

CO94: apply the concept of portfolio management for the better investment.

Approach in teaching:

Interactive Lectures using whiteboards, Discussion, Tutorials, Reading assignments, Demonstration, Team teaching, Quiz.

 

 

Learning activities for the students:

Self learning assignments, Effective questions, Solving problems of unsolved questions, Problem based learning-cases, Group learning teamwork, Giving Tasks.

Class test, Semester end examinations, Quiz, Solving problems in tutorials, Assignments, Presentation, Individual and group projects

 

 

12.00
Unit I: 
Introduction to Portfolio Management ,Quantification of portfolio risk and return & Beta estimation

Introduction to Portfolio Management: Meaning process. Diversification: concept, effect, types, Correlation between securities.

Quantification of portfolio risk and return: Return of portfolio ,risk of portfolio, standard deviation of portfolio, correlation coefficient.

Beta estimation: concept, assumptions, calculation of beta-single security and portfolio, utility of beta

12.00
Unit II: 
Capital Market Theory & Capital Asset pricing model

Capital Market Theory: concept, assumptions.

Capital Asset pricing model: concept, Aspects of CAPMF, assumptions, capital market line, security market line. Benefits and Limitation

12.00
Unit III: 
Arbitrage Pricing Model & Portfolio Analysis

Arbitrage Pricing Model: Arbitrage mechanism, comparison of APT and CAPM, application of APT.

Portfolio Analysis: concept, -Traditional portfolio analysis and Modern portfolio analysis.

12.00
Unit IV: 
Fundamental analysis

Fundamental analysis: concept, objectives, approaches. Economic analysis-meaning. Economic forces.Industry analysis-approaches to industry analysis.Company analysis- Quality of Management,labour-relation management and location, pattern of existing shareholdings, growth record, size and ranking, earnings analysis,financial analysis.

12.00
Unit V: 
Technical Analysis & Portfolio Evaluation

Technical Analysis: Concept, assumptions, utility or significance,technical analysis v/s fundamental analysis.Theories of technicalanalysis- Dow Theory. Tools and techniques of Technical analysis-Price and volume charts, bar chart,Linechart,Point and figure chart.

 

 

Portfolio Evaluation: Meaning & Need of Portfolio Evaluation,Measures of Portfolio Return-Sharpe’s Ratio.

Essential Readings: 

Books Recommended:

  • InvestmentAnalysisandPortfolioManagement,PrasannaChandra,TataMcGrawHill, 3rdEdition, 2009.
  • V.K.Bhalla, InvestmentManagement,7thEdition,S.Chand&Co.,NewDelhi,2000.
  • Gordon J. Alexander, William F. Sharpe & Jeffery V. Bailey, Fundamentals ofInvestments,PrenticeHall,India, 2003 edition.
  • Preetam Singh, Investment Management, 9th edition, Himalaya PublishingHouse,NewDelhi 2000.

 

Academic Year: 
2021-2022
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