FINANCE SPECIALISATION

SUBJECT: SECURITY ANALYSIS & PORTFOLIO MANAGEMENT

CURRENT SYLLABUS:

FINANCIAL MARKETS - Structure of Financial markets, Primary & Secondary

Markets, Money Markets - T Bills, Commercial Papers, Certificates of Deposit
EQUITY MARKETS - Structure of Equity market in India, Stock Exchanges, Listing &
Delisting of Securities, Trading & Settlement mechanism
BONDS MARKET - Treasury Notes (T-Notes) and T-Bonds, State and Municipal
Government bonds, Corporate Bonds, International Bonds
SECURITY ANALYSIS - Fundamental Analysis, Technical Analysis
PORTFOLIO ANALYSIs - Portfolio Creation, Portfolio Measurement Models, Portfolio
Risk Management

PROPOSED SYLLABUS:

1. An overview: (04 Lectures)

Investment Alternatives, Investment Attributes, How does various investment
avenues compare?, Investment versus Speculation, Financial Markets,
Portfolio Management Process, Sources of Financial Markets, Portfolio
Management Process, Sources of Investment Risk, Approaches to Investment
Decision making.

2. Investment Alternatives: (05 Lectures)

Non-marketable Financial Assets, Money Market Instruments, Bonds or Fixed
Income securities, Equity Shares, Mutual Fund Schemes, Life Insurance, Real
Estate, Precious Objects.

3. Securities Market: (05 Lectures)

Primary Equity Market, Secondary Equity Market and its operations, NSE and
BSE, Buying and Selling Shares, Stock market quotations and stock market
indices, SEBI and Future challenges, Stock market abroad, Government
securities market, Corporate debt market, Money market.

4. Risk & Return: (03 Lectures)*

Measuring Historical return, measuring historical risk, measuring expected
(Ex.Ante) Return and Risk.

5. The Time Value of Money: (04 Lectures)*

Time lines and notation, Future value of a single amount, Present value of a
single amount, Future value of an annuity, Present value of an annuity, Intra-
year compounding and discounting.

6. Financial Statement Analysis: (04 Lectures)*

 Financial statement, financial ratio, comparative analysis, Du-Pont analysis,
applications of financial statement analysis, problems in financial statement
analysis, Guidelines for financial statement analysis.

7. Portfolio Theory: (02 Lectures)

Portfolio return, Portfolio risk, Portfolio diversification, optimal portfolio, the
single index model.

8. Capital Asset Pricing Model: (03 Lectures)*

Basic assumptions, Capital market line, Security market line, Inputs required
for applying CAPM, Empirical evidence on capital asset pricing model.

9. Efficient Market Hypothesis: (03 Lectures)

Random walk and search for theory, what is an efficient market?, Empirical
evidence on weak form efficient market hypothesis, Empirical evidence on
semi-strong form efficient market hypothesis, Empirical evidence on the
strong form efficient market hypothesis, An alternative paradigm, what is the
verdict ?, Implications for investment analysis.

10. Analysis and valuation of Debt: (04 Lectures)*

Types and features of debt instruments, Bond pricing, Bond Yields, Risk in
debt, Interest rate risk, Rating of debt securities, The yield curve,
Determinants of interest rates, analysis of convertible bonds, Bond portfolio
management.

11. Equity valuation: (04 Lectures)*

Balance sheet valuation, Dividend discount model, Earnings multiplier
approach, Earnings-Price ratio, Expected return and growth, Equity portfolio
management.

12. Fundamental analysis: (04 Lectures)*

Macroeconomic analysis, Industry analysis, Company analysis, The study of
financials, Company analysis: Going beyond numbers, Estimation of intrinsic
value, Some tools for judging under valuation or over valuation.

13. Technical analysis: (03 Lectures)*

What is technical analysis?, Charting techniques, Technical indicators, Testing
technical trading rules, Evaluation of technical analysis.

14. Options: (03 Lectures)

How options work?, Options and their payoffs just before expiration, Options
strategies, factors determining options values, Binomial model for option
values, Black and Scholes model, Equity options in India.

15. Futures: (03 Lectures)

Features of a futures contract, Futures contracts: The Global scene, Equity
futures in India, Pricing of future contracts, Use of future contracts.
16. Portfolio Management Framework: (06 Lectures)*
Specification of investment objectives and constraints, Selection of Asset mix,
Formulation of portfolio strategy, Selection of securities, Portfolio execution,
Portfolio Revision, Performance evaluation.

Please note: The above mentioned topics are detailed topics as conducted in
various Ivy League institutions and have been made so as to meet the
industry standards and this acts as a bare minimum knowledge to be
expected from MBA Finance students. The no of lectures are indicative, the
same can be adjusted as per the requirements. Topics marked with * are
quantitative subjects which involves calculations either manually or via excel
(financial modelling). The subject would also cover an intense project of 4-6
months on writing an equity research on a specific stock.