INVESTMENT ANALYSIS AND PORTFOLIO MANAGEMENT

COURSE DESCRIPTION/OBJECTIVE

The objective of the course is to study theory and empirical evidence relevant for

portfolio management. An emphasis is placed on understanding how an investment

professional would allocate funds in a hypothetical portfolio. Major topics include

estimation of capital market parameters, trade-off between risk and return, optimal

portfolio selection, equilibrium asset pricing models, and delegated portfolio

management. Emphasis will be put on development of techniques that should be

part of the tool kit of those interested in becoming professional investors and/or

researchers in finance. The course material is tilted heavily towards equity markets

since there are separate courses that cover fixed income markets and derivative

securities. This course is designed to primarily address the needs of advanced

students in an MBA program.

LEARNING OUTCOMES

By the end of this course it is expected that the student will be able to:

1. Understand the operations of financial markets;

2. To analyze the various types of assets including equities, fixed income

securities, and derivatives;

3. To perform risk analysis.

4. Enhance the skills are required for corporate finance, trading, and

investment banking positions.

PLAN OF EDUCATIONAL METHODOLOGY TO BE USED

Knowledge Skills

Lectures Multimedia presentations, group

discussions,

COURSE CONTENT

Week 01 Investment Settings

Week 02 Organization And Functioning Of Securities Market

Week 03 Security market indicator series

Week 04 Introduction to efficient market hypothesis

Week 05 An introduction to portfolio management

Week 06 An introduction to asset pricing models

Week 07 Analysis of financial statements

Week 08 Security valuation

Week 09 Stock market analysis

Week 10 Industry analysis

Week 11 Company analysis and stock valuation

Week 12 Technical analysis

Week 13 Introduction to behavioral finance

Week 14 Introduction to financial derivatives

Week 15 Forwards, Futures, Options & Swaps

Week 16 Project/Revision

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TEXT BOOK

1. Jones. P. Charles; Investment: Analysis & Management, John Wiley & Sons.

REFERENCE BOOKS

1. Sharpe, Alenander and Bailey; Investments, Prentice Hall.

2. Bodie, Kanne & Marcus; Investment, McGraw Hill.

3. Radcliff; Investment: Concepts Analysis Strategy, Addison Wesley.