Security Analysis and Portfolio Management

MBA Second Year (Financial Management) Paper No. 2.6

School of Distance Education

Bharathiar University, Coimbatore - 641 046

Author: Sudhindra Bhat Copyright 2008, Bharathiar University All Rights Reserved Produced and Printed by EXCEL BOOKS PRIVATE LIMITED A-45, Naraina, Phase-I, New Delhi-110028 for SCHOOL OF DISTANCE EDUCATION Bharathiar University Coimbatore-641046

CONTENTS

Page No. UNIT I Lesson 1 Lesson 2 Investment Speculation Investment Avenues in India UNIT II Lesson 3 Lesson 4 Risk and Return Measurement and Significance of Beta UNIT III Lesson 5 Lesson 6 Security Valuation Equity Shares Valuation UNIT IV Lesson 7 Lesson 8 Lesson 9 Lesson 10 Fundamental Analysis 1: Economic Analysis Fundamental Analysis 2: Industry Analysis Fundamental Analysis 3: Company Analysis Technical Analysis UNIT V Lesson 11 Lesson 12 Lesson 13 Lesson 14 Portfolio Selection Performance Evaluation of Portfolio Portfolio Revision Capital Asset Pricing Model 241 258 272 284 305 157 171 186 205 117 138 53 106 7 15

Model Question Paper

SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT SYLLABUS UNIT I Investment-Meaning and process of Investment Management - Speculation Investment Avenues in India. UNIT II Risk and Return - Historical and Expected return - Measurement - Risk and its measurement - Systematic and Unsystematic risk - Types - Measurement and significance of Beta. UNIT III Security Valuation - Bond, Equity and preference share valuation - Yield to maturityBond value theorems UNIT IV Fundamental and Technical Analysis - Economy, Industry and Company analysis - Tools for technical analysis. UNIT V Portfolio Selection, performance evaluation and portfolio revision- Formula plans. - Capital Asset Pricing Model (CAPM)