Security Analysis & Portfolio Management
Subject Overview
Security Analysis & Portfolio Management is the Accounting & Finance elective on how to actually evaluate and manage investments. You'll cover investment fundamentals and philosophy (value vs. growth investing), risk and return analysis, fundamental and technical analysis for evaluating securities, and close with portfolio management models — CAPM, Arbitrage Pricing Theory, the Markowitz Model, and portfolio performance evaluation using the Sharpe, Jensen, and Treynor models. This is a 6-credit elective paper across 4 units, for students interested in investment and wealth management careers.
Unit-wise Syllabus
4 units — click WhatsApp below to get the full notes for each
Unit 1: Investment fundamentals
Meaning, nature, objectives and process of investment, investment vs. speculation vs. gambling, investment avenues, value investing and growth investing, individual and institutional investors
Unit 2: Risk & return analysis
Meaning and management of risk, analysis of risk and return, relationship between risk and return, types and measurement of risk, the risk-return trade-off
Unit 3: Fundamental & technical analysis
Economic, industry and company analysis, charting techniques and indicators, fundamental vs. technical analysis, Efficient Market Theory, Random Walk Theory
Unit 4: Portfolio management
Capital Asset Pricing Model, Arbitrage Pricing Theory, Markowitz Model, Capital Market Line, Security Market Line, portfolio performance evaluation (Sharpe, Jensen, Treynor models), techniques of portfolio revision, formula plans, global investing