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SECURITY ANALYSIS
This course will enable the students to explore risk and return associated with various investment alternatives
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Course |
Learning outcome (at course level) |
Learning and teaching strategies |
Assessment Strategies |
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Course Code |
Course title |
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24MFM323 |
Security Analysis (Theory) |
CO 333: Analyze different investment alternatives and explore investment decision process. CO 334 : Explore investment strategies and evaluate risk and return of an investment. CO 335: Apply Valuation Techniques, evaluate Bond Prices and assess Risks Associated with Bonds CO 336: Evaluate stock return and apply various valuation methods. CO 337: Analyze a security on the basis of various fundamental and technical aspects CO338: Contribute effectively in course-specific interaction
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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 |
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Introduction, Investment objectives and constraints, Factors affecting investment decision, Investment decision process, Types of Investment; Investment Avenues: Security form of investments: Equity Shares, preference shares, debentures and government securities. Comparison of various investment options on the basis of risk, return, marketability; non-security form of investments (Deposit schemes, Tax saving schemes, Life insurance policies, Mutual funds, Real assets) |
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Security analysis-Objectives, approaches, investment strategies |
Risk and Return: Concept of Risk, total risk and its components. Concept of Return, Measurement of risk and Return, risk and return relationship , Risk aversion and risk premium
Bond Return and Valuation: Types of bonds, valuation of bonds- coupon rate, current yield, spot interest rate, yield to maturity, yield to call, Bond prices, Bond Duration and risk associated with bonds
Stock Return and Valuation: Valuation methods- dividend yield method, earning yield method, return on capital employed method, price/ earnings method. Discounted cash flow valuation method- discounted dividend model, discounted cash flow model, discounted internal rate of return model.
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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. 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 |
- Punithavathy Pandian, Security Analysis and Portfolio Management, Vikas Publishing House
- 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.
Suggested Readings:
- Preetam Singh, Investment Management, 9th edition, Himalaya Publishing House, New Delhi 2000.
- Prasanna Chandra, Managing Investments, Tata McGraw Hill, 2002
- ordon J. Alexander, William F. Sharpe & Jeffery V. Bailey, Fundamentals of Investments, Prentice Hall, India, 2003 edition.
- M R Agarwal,Security and Portfolio Management, Garima Publications
E-Resources:
- Security Analysis and Portfolio Management,2e; Elibrary.in.pearson.com
- Security Analysis and Portfolio Management; 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
