FOURTH TRIMESTER - JUNE-AUG 2013

COURSE PLAN FOR SECURITY ANALYSIS AND PORTF MANAGEMENT

Availab Curriculum le Hrs reference 1 1 1 1 1 2 3 Unit 1

Week 1

SECURITY ANALYSIS Introduction to the Course Overview of Indian Securities Markets Asset Allocation and Investment Process Economic Analysis Industry Analysis Company Analysis Equity Valuation Cash Flow Based Valuation Asset Based Valuation Relative Valuation Bond Fundamentals Valuation Bond Portfolio Management

Pedagogy ppt ppt + Newspaper ppt + Client Portfolio ppt Reports + ppt Reports + ppt CIA 1 - Equity Valuation Equity reports Equity reports Excel ppt + News paper CIA 2 - Debt Fund Pfolio

Unit 1 Unit 1 Unit 2 Unit 2

2 1

Unit 5 Unit 5

Unit 2

Technical Analysis

ppt

MID TERM PORTIONS UPTO SECURITY ANALYSIS

PORTFOLIO MANAGEMENT Efficient Market Hypothesis Introduction to Portfolio Management Risk and Return concepts CAPM, SML, SML Markowitz Portfolio Theory Modern Portfolio Theory Portfolio Return measurement Portfolio Risk measurement Systematic and Unsystematic risk Arbitrage Portfolio Theory Portfolio Performance Measurement Jensons Ratio Treynor Ratio Sharpe Ratio

1 2

Unit 3 Unit 3

ppt ppt + Excel ppt + Excel ppt ppt + Excel ppt + Excel ppt ppt ppt ppt + Excel ppt + Excel ppt + Excel

2 2

Unit 3 Unit 6

1 2

Unit 3 Unit 4

9 10

3 2 30

Unit 4 Unit 7

Portfolio Strategies Behavioural Finance

ppt ppt

END TERM

Learning Objectives of the course

1 2 3 4

To practically learn valuation of bonds and shares To understand and do Economic, Industry and Company analysis To practically learn portfolio construction and its performance To understand the news related to fixed income and equity markets and its implications o

UNE-AUG 2013

NALYSIS AND PORTFOLIO ENT

Student Reference
Self preparation Ch 1 & 4 of R&B Ch 2 of R&B Ch 12 of R&B Prowess Ch 13 of R&B Ch 12 of R&B Excel Ch 14 of R&B Prowess

Additional Student Reference

Reference URLs

Ch 1,2 & 3 of Prasanna Chandra

http://www.sebi.gov.in/sebiweb/

Ch 14 of Prasanna Chandra Ch 14 of Prasanna Chandra Ch 15 of Prasanna Chandra Ch 13 of Prasanna Chandra

http://www.nseindia.com/education/content/mod http://pages.stern.nyu.edu/~adamodar/ https://www.mckinseyquarterly.com/Corporate_Fin

http://www.amfiindia.com/SiteMap_Po.aspx?pos=H http://www.nseindia.com/content/corporate/eq_r http://www.bseindia.com/sensex/research.aspx http://www.fimmda.org/ http://www.finpipe.com/typbond.htm Various AMC's websites http://www.valueresearchonline.com/ http://stockcharts.com/

Excel bt Fund Pfolio

Ch 17 of R&B Ch 18 & 19 of R&B Ch 16 of R&B and Self preparation

Ch 11 of Prasanna Chandra Ch 12 of Prasanna Chandra

Ch 16 of Prasanna Chandra

SECURITY ANALYSIS

Ch 6 of R&B Ch 7 of R&B

Ch 9 of Prasanna Chandra Ch 7 & 8 of Prasanna Chandra

Ch 7 of R&B Ch 8 of R&B

Ch 7 of Prasanna Chandra

Ch 9 of R&B Ch 25 of R&B

Ch 8 of Prasanna Chandra Ch 21 of Prasanna Chandra

Ch 15 of R&B

Ch 21 of Prasanna Chandra Ch 10 of Prasanna Chandrsa

Book: "Thinking Fast and Slow" by Daniel Kahneman

markets and its implications on valuations

m/education/content/module_ncfm.htm du/~adamodar/ uarterly.com/Corporate_Finance/Valuation

om/SiteMap_Po.aspx?pos=Home m/content/corporate/eq_research_reports.htm m/sensex/research.aspx

/typbond.htm

chonline.com/

Slow" by Daniel Kahneman

LAST DATE FOR SUBMISSION O

CIA 1

LAST DATE FOR SUBMISSION O

CIA 3

LAST DATE FOR SUBMISSION OF CIA 1 - 5th July 2013

SAPM - CIA 1 EXERCISE
Students are expected to download a full fledged equity report and analyze the report in terms of its contents coverage, valuation methodology, their learnings from the valuation methods adopted by the analyst, the cash flow projection basis and other aspects of the valuation, such as:

Learning Objective

1. To understand and learn how practically the equity valuation is done. 2. To learn how the specific parameters are taken into consideration actually in equity valuation by the analysts.

Structure of Cash Flows Calculation of Cost of Equity, WACC, Risk free rate, Market return, Beta of the stock etc Cash Flow projection period, Terminal growth rate assumed Sensitivity analysis of the share price to different variables which go inside the equity valuation

LAST DATE FOR SUBMISSION OF CIA 2 - 4th Aug 2013

SAPM - CIA 3 EXERCISE Learning Objective

Students should study the portfolio of different debt mutual funds in the market and analyse how the change in the interest rate impact the overall returns for the investors

1. To learn how a bond portfolio is constructed and understand its features such as modified duration, YTM etc 2. To learn the impact of RBI monetary policy and changes in interest rate on the bond portfolio

- 5th July 2013

Evaluation Criteria
1. All elements of valuation must be present in the live CIA report (missing on learning some aspects such as cost of equity capital, terminal period growth rate or details of cash flows will attract lower marks)

Weightage for marks

35%

30%
2. Articulation of the understanding of various parameters 3. Any special assumptions made as against what has been taught in the class 4. Originality of the analysis (plagiarism) 5. Timeliness Total

15% 10% 10% 100%

- 4th Aug 2013

Evaluation Criteria Weightage for marks

1. Student should exhibit understanding of the various features of the debt mutual fund allotted to them. They should present the performance of over a period of time.

45%

45%
2. Analysis of the above 3. Timeliness

10%

Evaluation Criteria 1. CIA I 2. CIA II 3. Attendance and Class Participation 3. Mid Semester Test 4. End Semester Examination

Evaluation Criteria 1. CIA I 2. CIA II 3. Attendance and Class Participation 3. Mid Semester Test 4. End Semester Examination (20 marks) (20 marks) (10 marks) (50 marks) (100 marks)

Title Investment Analysis and Portfolio Management Investment Analysis and Portfolio Management Security Analysis and Portfolio Management Investments Investments Analysis and Management Investments Analysis and Behavior

Author Reilly and Brown Prasanna Chandra Fisher and Jordan Bodie, Kane, Marcus, Mohanty Charles P Jones Mark Hirschey and John Nofsinger

Publisher Thomson TMH Pearson TMH Wiley TMH

Edition 8e 4e 6e 6e 9e