Lexicon SAPM Syllabus

Trimester III
Subject Title: Security Analysis and Portfolio Management Subject Code – PG408 F
After completion of this course, students will able to:

Sr. No. Course Outcome
1. Acquire practical and empirical knowledge of capital markets in India, different types
of securities in capital markets in India – equity, debt, and derivatives & their returns.
2. Explore Risks associated with investment – systemic, non-systemic, diversifiable, non-

diversifiable etc. and constituents of a portfolio – Discretionary, non-discretionary to
tackle the ups and downs in the market.
3. Know how a Mutual Fund is a non-discretionary portfolio, Correlations among stocks
in a portfolio – positive, negative, perfect, and imperfect.
4. Imbibe the skills like:
- Drafting the different models in portfolios
- Determining beta for a given stock
- Applying fundamental analysis to SAPM
- Applying technical analysis to SAPM
Knowledge:
1. Empirical knowledge of capital markets in India

2. Different types of securities in capital markets in India – equity, debt and derivatives &
their returns
3. Risks with investment – systemic, non-systemic, diversifiable, non-diversifiable etc.
4. Constituents of a portfolio – Discretionary, non-discretionary.
5. How a MF is a non-discretionary portfolio
6. Correlations among stocks in a portfolio – positive, negative, perfect and imperfect
7. Different models in portfolios
Skills:
1. Constructing a simple portfolio

2. Determining beta for a given stock
3. Applying fundamental analysis to SAPM
4. Applying technical analysis to SAPM
Attitude:
1. Learning fundamentals of investment decisions & Mutual fund investment.

Topics to be covered
Unit Session
No. Contents Chapter Outcome (in Hours)
1 Nature and Scope of Investment Management The learner 6
and Portfolio Analysis  understands the Scope
 Basics of stock markets of Investment
 Investment versus Speculation Management and
 Investment Alternatives and Their Evaluation Portfolio Analysis
 Financial Markets can comprehend the
role of Portfolio
 Portfolio Management Process Management
 Approaches to Investment Decision Making
 Common Errors in Investment Management
and Qualities of Successful Investing
 Role of Portfolio Management, Portfolio
Management Practices in International
markets
2 Basic Concepts and Methods The learner 6
 Risk and Return – Measuring Historical  has an understanding
Return, Measuring Historical Risk, Measuring about Fundamental
Expected (Ex Ante) Return and Risk. Analysis
 Fundamental Analysis: Economic Analysis,  has an understanding
Industry Analysis, Company Analysis about Technical
Framework Analysis
 Technical Analysis: Basic Tenets of Technical  can analyze the stock
Analysis - Dow Theory - Behavior of Stock and Company
Prices - Major Trends - Charts and Trend performance
Lines - Resistance and support Lines -
Different Patterns, Elliot Wave Theory,
Efficient market theory
3 Theories of Portfolio Management The learner 6

 Theories of Portfolio Management  is aware about
 Markowitz Model – Portfolio Theory Theories of
 Capital Market Line, Limitations of Portfolio
Management
Markowitz Model  can Distinguish
 Sharpe’s Single Index Model, Sharpe’s among different
Optimal Portfolio models of Portfolio
 Capital Asset Pricing Model (CAPM) Management
Security Market Line (SML) Arbitrage
Pricing Theory
4 Equity and Bond The learner 6

 Equity Valuation: Balance Sheet Techniques-  Knows how to do
Book value, Liquidation value, Replacement Equity Valuation
cost.  has an understanding
 Discounted Cash Flow Techniques: Dividend about Bond Valuation
discount model, free cash flow model.
 Relative Valuation Techniques: Price-earnings
ratio, Price-book value ratio, Price-sales ratio
 Bond Valuation: Bond Returns, Coupon Rate,
Current Yield, Yield to Maturity, Yield to
Call, Bond duration
5 Portfolio Management The learner 6

 Specification of Investment Objectives and  can formulate a
Constraints Portfolio Strategy
 Selection of Asset Mix  can Analyze the
 Formulation of Portfolio Strategy Performance
 Selection of Securities Evaluation Measures of
 Portfolio Execution, Portfolio Revision, different scholars
Performance Evaluation
 Performance Measures Treynor Measure,
Sharpe Measure, Jensen Measure. Asset
Allocation
Total 30
Textbooks:
1. Punithavathy, P. (2003). Security analysis and portfolio management. Vikas publication.
2. Fischer D. E. & Jordan R. J. (1995): Security Analysis and Portfolio Management, New
Delhi, Prentice-Hall of India Strong
Reference Books:
1. Avadhani V. A. (1997): Investment Analysis and Portfolio Management, Mumbai,

2. Himalaya Bodie Z. & Kane A. (1995): Essentials of Investment, London
3. Irwin Chandra P. (2002): Investment Analysis and Portfolio Management, New Delhi,
Tata McGraw-Hill
Online Resources:
1. www.investopedia.com
2. www.nseindia.com
3. www.bseindia.com

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Trimester III

After completion of this course, students will able to:

2. Explore Risks associated with investment – systemic, non-systemic, diversifiable, non-

1. Empirical knowledge of capital markets in India

1. Constructing a simple portfolio

1. Learning fundamentals of investment decisions & Mutual fund investment.

3 Theories of Portfolio Management The learner 6

4 Equity and Bond The learner 6

5 Portfolio Management The learner 6

1. Avadhani V. A. (1997): Investment Analysis and Portfolio Management, Mumbai,

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