This course will enable the students to construct, analyze and manage a portfolio.
Course Outcomes (Cos):
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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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25MFM423 |
Portfolio Management (Theory) |
CO619: Evaluate risk and return of a portfolio and explore approaches of portfolio construction. CO620: Analyze a portfolio using financial models and construct an optimal portfolio. CO621: Evaluate return of an asset using CAPM, Analyze the Capital Market Line (CML) and Security Market Line (SML), Examine the arbitrage mechanism underlying APT CO622: Analyze various measures of portfolio return and apply portfolio analysis techniques and evaluation measures in practical investment scenarios CO623: Analyze different types of formula plans used for portfolio revision, CO624: 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 |
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
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
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.
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
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.
• Investment Analysis and Portfolio Management, Prasanna Chandra, Tata McGraw Hill, 3rd Edition, 2009.
• Punithavathy Pandian, Security Analysis and Portfolio Management, Vikas Publishing House
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 [2]
Journals:
• South Asian Journal of Business and Management Cases; https://sagepub.com [3]
• Indian Journal of Finance
• Asian Journal of Management Cases
Links:
[1] https://managementb.iisuniv.ac.in/courses/subjects/portfolio-management-theory
[2] https://www.expresslibrary.mheducation.com/pdfreader
[3] https://sagepub.com
[4] https://managementb.iisuniv.ac.in/academic-year/2025-2026