PORTFOLIO MANAGEMENT

Paper Code: 
MFM 423
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 1: Understand the concept of portfolio selection.

CO 2: Assess the efficiency level of the financial market.

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 andgroup projects

CO 3: Application of asset pricing

 

models    for   the             selection             of

 

securities.

 

CO     4:          Understand        portfolio

 

performance measurement.

 

CO 5:  Understand  the  various

 

theories for technical analysis.

 

CO 6:  apply  the  concept  of

 

portfolio management  for  the

 

better investment.

 

 

12.00
Unit I: 

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

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

Beta estimation: concept, assumptions, calculation of beta- singlesecurity and portfolio, utility of beta.

 

12.00
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: 

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

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

 

12.00
Unit IV: 

Fundamental analysis: concept, objectives, approaches. Economic analysis- meaning. Economic forces. Industry analysis- approaches toindustry 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: 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: 

Essential Readings:

  • Investment Analysis and Portfolio Management, Prasanna Chandra, Tata McGrawHill, 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 PublishingHouse, New Delhi 2000.

 

Suggested Readings:
  • Preetam Singh, Investment Management, 9th edition, Himalaya PublishingHouse, New Delhi 2000.
  • Prasanna Chandra, Managing Investments, Tata McGraw Hill, 2002

 

References: 
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: 
2023-2024
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