KADI SARVA VISHWAVIDYALAYA GANDHINAGAR

COURSE OUTLINE
SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT
MBA SEMESTER III
AT
S. V. INSTITUTE OF MANAGEMENT, KADI
S.K. PATEL INSTITUTE OF MANAGEMENT & COMPUTER STUDIES, GANDHINAGAR
LDRP INSTITUTE OF TECHNOLOGY AND RESEARCH, GANDHINAGAR

_____________________________________________________________________________________

COURSE DESCRIPTION
This course is designed to teach the fundamentals of investments along with the
analysis and strategies to become successful investor. It will start from the
investment introduction to the performance Evaluation of securities and portfolio. To
understand deeper how market works, students will be taught the stock market
fundamental. It discusses the risk return tradeoff of an individual investor, it also
persist how investment in securities market is evaluated based on Fundamental and
Technical analysis. It also discusses application of Modern Portfolio Theory, analysis of
active and passive investment strategies, and measurement of portfolio
performance. This course will also emphasize students to learn forces that affect
security market.

LEARNING OUTCOMES:
Upon successful completion of the course, the student will be able to:
1. Compare and contrast advantages and disadvantages to investors from various
investment securities in their portfolios
2. Analyze the pros and cons of investing in security markets
3. Evaluate of participants in security markets maintaining ethical standards
4. Use valuation models to estimate the value of stocks, bonds, and derivative
instruments
5. Analyze individual companies as to their financial condition, growth prospects,
and relative valuation
6. Construct a portfolio that meets an investor's risk and return objectives and
satisfies investment constraints
7. Measure the riskiness of a stock or a portfolio position.
8. Allocate investments into stock and bond portfolios in accordance with a
person's risk preferences.
In addition, you will learn how security markets currently function.

Focus: The course would focus in providing a practical approach which will guide
the students through the method of Knowing- Learning Practicing.

Teaching Methods: The course will use the following pedagogical tools: (a)
Lectures (b) Projects/ Quizzes / Assignments / Attendance and Class participation

Course Duration: The course duration is of 50 sessions of 60 minutes each.

Evaluation Scheme 60% (30% Mid Sem Exam + 30% Continuous Evaluation
Component) + 40% University Exam = 100%
1

SYLLABUS
Uni
t

3
4

Topics
The Investment alternatives and Objectives, Risk Return
Measures and Analysis, Determinants of Required Rates of
Return and Relationship between Risk and Return, Risk-free
rate and its influencing factors and Risk Premium,
Organization and Functioning of Securities Markets,
Security Market Indexes
Economic Analysis, Industry Analysis, Company Analysis
and Stock Valuation, Technical Analysis, Efficient Market
Hypothesis
An Introduction to Portfolio Management, Modern Portfolio
Theories, Equity Portfolio Management Strategies, Bond
Fundaments and Valuation, Bond Portfolio Management
Strategies
Mutual Funds, Evaluation of Portfolio Performance

Number
of
Session
s

Weighta
ge

11

22%

14

28%

20

40%

10%

CHAPTER - WISE SESSION PLAN OF THE SYLLABUS;

Session
s

Unit

1
2-5

6-7

Unit
1

14-15
16-17
18-21

Investment Alternatives and Objectives

Introduction to Risk Return Tradeoff, Measures,
Analysis, Determinants of Required Rates of Return
and Relationship between Risk and Return, Risk-free
rate and its influencing factors and Risk Premium
Organization and Functioning Securities Markets,
Primary and Secondary Markets, Types of Markets,
Types of Orders
Introduction to Indian Stock Markets, Stock Market
Indices, Indices Calculations

8-11

12-13

Topic

Unit
2

Economic Analysis Macroeconomic activities and

security markets, The Cyclical Indicator Approach,
Monetary Variables
Industry Analysis Business Cycles and industry
sectors, Evaluating Industry life cycle, analysis of
industry competition and industry rate of returns
Company Analysis, SWOT Analysis, Analysis of
Financial Statement and Stock Valuation
Technical Analysis Assumption, Advantages,
Challenges, Types of Charts, Technical Trading Rules

Chapter
Number in
Text Book
and
Reference
Material
1
1

4
5 and
Reference
Materials
will be
Provided
12
13
14
15
2

22-25
26-27
28-32
33-36
37-39
Unit
3
40-41

42-44
45
46-47

and Indicators
Introduction to Efficient Market Hypothesis, Random
Walk Model, Forms of EMH, Empirical Evidences
Introduction to Portfolio Management Measurement
of Expected Risk and Returns of Portfolio, Alternative
measures of Risk
Markowitz Portfolio Theory
Capital Assets Pricing Model, Overview and
Assumptions, Capital Market Theory, Security Market
Line and Capital Market Line, Zero Beta Model
Multifactor Models and risk Estimation Arbitrage
Pricing Theory, Sharpes Single Index Model,
Lagrange Multiplier Theory
Equity
Portfolio
Management
Overview
and
Strategies, Passive and Active Management, Index
Portfolio Construction techniques, Value versus
Growth Investing
Bond Fundaments, Valuation and Bond Yield
The Analysis and Valuation of Bond Determinants of
Interest Rates, Term structure Interest Rates Theories,
Bond Theorems
Bond Portfolio Management Strategies - Overview
and Strategies, Passive and Active Management

48-50

7
7
8
9

16

17, 18
19
Reference
Materials
will be
Provided

Introduction to Mutual Funds

Unit
4

Evaluation of Portfolio Performance Treynor, Sharpe,

Jensen and Fama Net Selectivity, Application of
Portfolio Performance Measures

25

COURSE MATERIALS
Text Book
Investment Analysis and Portfolio Management by Reilly and Brown,
Cengage Learning, India Ed.

Reference Books
1. Investment Analysis and Portfolio Management by Prasanna Chandra
2. Investments by Zvi Bodie, Alex Kane, Alan Marcus and Pitabas Mohanty
3. Security Analysis and Portfolio Management by Donald Fisher and Ronald
Jordan
You are also required to refer the Reference books, websites and Journals
which are given.

EVALUATION SYSTEM
Internal
Continuous
Evaluation
Component
Mid-Semester
Exam: 30 Marks

Evaluation External
Evaluation

Project: 10% (Will be given in a As per Kadi Sarva

Vishwavidyalaya:
group of two students)
40%
Quiz : 10%
Assignment: 5% (Will be required to
3

submit in a group of two students)

Class Participation &
Attendance: 5%

RECOMMENDED WEBSITES
www.nseindia.com
www.moneycontrol.com
www.investopedia.com
www.amfiindia.com
www.capitalmarket.com

www.bseindia.com
www.myiris.com
www.capitalideasonline.c
om
www.commoditiescontrol.
com
www.trendwatch.com

www.equitymaster.co
m
www.valuenotes.com
www.sebi.gov.in
www.icicidirect.com
www.nsdl.co.in

RECOMMENDED MAGAZINES AND JOURNALS

Dalal Street
Wall Street Journal
Forbes

Financial Times
Business Week
Financial Analysts Journal

Capital Market
Institutional Investor
Journal of Portfolio Management

---------------------------------------All the Best---------------------------------------