PORTFOLIO MANAGEMENT

Paper Code: 
MFM423
Credits: 
4
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 

This course will enable the students to construct, analyze and manage a portfolio.

Course Outcomes: 

Course

Learning outcome

(at course level)

Learning and teaching strategies

Assessment Strategies

Course Code

Course

title

 

24MFM423

 

Portfolio Management (Theory)

 

CO695 Evaluate risk and return of a portfolio and explore approaches of portfolio construction.

CO696 Analyze a portfolio using financial models and construct an optimal portfolio.

CO697 Evaluate return of an asset using CAPM, Analyze the Capital Market Line (CML) and Security Market Line (SML), Examine the arbitrage mechanism underlying APT

CO698 Analyze various measures of portfolio return and apply portfolio analysis techniques and evaluation measures in practical investment scenarios

CO699 Analyze different types of formula plans used for portfolio revision,

CO700: Contribute effectively in course-specific interaction

Approach in teaching:

Interactive Lectures, Group Discussion, Tutorials, Case Study

Learning activities for the students:

Self-learning assignments,

presentations 

.Class test, Semester end examinations, Quiz, Assignments, Presentation

 

12.00
Unit I: 
Introduction to Portfolio Management and Portfolio Construction

Introduction to Portfolio Management: Meaning, process, Calculating Risk and Return of a portfolio, Beta estimation: concept, assumptions, calculation of beta of a portfolio, utility of beta.
Portfolio construction-Approaches, Selection of portfolio

12.00
Unit II: 
Markowitz & Sharpe Index Portfolio Model

Portfolio Markowitz Model-Simple Diversification, The Markowitz model, Risk and return with different correlation, Markowitz efficient frontier
The Sharpe Index Model-Single Index Model, Corner’s portfolio, Sharpe’s optimal portfolio, Construction of the optimal portfolio

12.00
Unit III: 
Capital Asset Pricing & Arbitrage Pricing Mode

Capital Asset pricing model: concept, assumptions, capital market line, security market line, Limitation
Arbitrage Pricing Model, Arbitrage mechanism, comparison of APT and CAPM, application of APT.

12.00
Unit IV: 
Portfolio Analysis & Evaluation

Portfolio Analysis: concept, Kinds of portfolios analysis- Traditional Portfolio Analysis and Modern Portfolio Analysis
Portfolio Evaluation: Meaning & Need of Portfolio Evaluation, Measures of Portfolio Return-Sharpe’s Ratio, Treynor’s ratio and Jensen’s ratio

12.00
Unit V: 
Portfolio Revision

Portfolio Revision: Passive Management, Active Management, The Formula plans, Assumptions, Advantages, Disadvantages, Rupee cost averaging, Constant Rupee Plan, Constant Ratio plan, Variable ratio plan, Revision and the cost

*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.
Punithavathy Pandian, Security Analysis and Portfolio Management, Vikas Publishing House

References: 

Suggested Readings:

· 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.

· Prasanna Chandra, Managing Investments, Tata McGraw Hill, 2002

E-Resources:

· Security Analysis and Portfolio Management,2e; Elibrary.in.pearson.com

· SecurityAnalysisandPortfolioManagement; https://www.expresslibrary.mheducation.com/pdfreader

     Journals:

· South Asian Journal of Business and Management Cases; https://sagepub.com

· Indian Journal of Finance

· Asian Journal of Management Cases

Academic Year: 
2024-2025
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