PORTFOLIO MANAGEMENT

Paper Code: 
MFM 422
Credits: 
4
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 

Course Outcomes

Learning and teaching strategies

Assessment

Strategies

  
 

On completion of this course, the students will be able to;

CO 160: Understand the concept of portfolio selection.

CO 161: Assess the efficiency level of  the financial market.

CO 162: Application of asset pricing models for the selection of securities.

CO 163: Understand portfolio performance measurement.

CO 164: Understand the various theories for technical analysis.

  CO 165: 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: 
Unit-1

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: 
Unit-II

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: 
Unit-III

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

Portfolio Analysis: concept, Kinds of portfolios analysis- Traditional Portfolio Analysis and Modern Portfolio Analysis.

 

12.00
Unit IV: 
Unit-IV

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: 
Unit-V

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

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

 

*Case studies related to entire topics are to be taught.

 

Essential Readings: 
  • Investment Analysis and Portfolio Management, Prasanna Chandra, Tata McGraw Hill, 3rd Edition, 2009.
  • V.K. Bhalla, Investment Management, 7th Edition, S. Chand & Co., New Delhi, 2000.
  • Gordon J. Alexander, William F. Sharpe & Jeffery V. Bailey, Fundamentals of  Investments, Prentice Hall, India, 2003 edition.
  • Preetam Singh, Investment Management, 9th edition, Himalaya Publishing House, New Delhi 2000.

 

References: 

Suggested Readings:

  • Preetam Singh, Investment Management, 9th edition, Himalaya Publishing House, New Delhi 2000.
  • Prasanna Chandra, Managing Investments, Tata McGraw Hill, 2002

 

E-Resources:

 

Journals:

  • South Asian Journal of Business and Management Cases; https://sagepub.com
  • Indian Journal of Finance
  • Asian Journal of Management Cases

 

Academic Year: 
2022-2023
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