Security Analysis and Portfolio Management
Subject Overview
Security Analysis and Portfolio Management gives in-depth knowledge of analyzing securities and portfolio theory — investment fundamentals and capital markets, fundamental and technical analysis, efficient market theory and portfolio construction, and single-index/factor models with portfolio performance evaluation. A 4-credit core theory paper.
Unit-wise Syllabus
4 units — click WhatsApp below to get the full notes for each
Unit 1: Investment fundamentals
Nature and scope of investment analysis, elements and avenues of investment, approaches to investment analysis, risk and return concepts and measurement, financial asset types and information sources, capital market and public issue procedure, stock exchange mechanism and development in India
Unit 2: Fundamental and technical analysis
Economic analysis, industry analysis and life cycle, SWOT analysis for industries, company analysis and ratio analysis, technical analysis techniques — Dow theory, volume/sentiment/confidence indicators, point-and-figure and bar charting
Unit 3: Efficient markets and portfolio management
Random walk theory (weak/semi-strong/strong forms), comparison of random walk with technical and fundamental analysis, portfolio management objectives and construction issues, portfolio revision and evaluation, estimating return and standard deviation, Markowitz risk-return optimization
Unit 4: Index models and performance evaluation
Single index model — total, market and unique risk, arbitrage pricing theory and arbitrage portfolios, two-factor and multi-factor models, portfolio performance measures, risk-adjusted evaluation, market timing and evaluation criteria