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SAPM-MB19
MBA-BM 2019-21: Term-IV

Security Analysis and Portfolio Management (SAPM)
Xavier Institute of Management (XIMB), Xavier University, Bhubaneswar

Credits3
ProgramMBA(II)-BM
Academic Year & Term 2020-2021, Term-IV
FacultyDr. Pratap Chandra Pati
E-mail & Phonepratap@ximb.edu.in ; (0674) 6647 730

I. Course description

This course is intended to provide the essential quantitative and qualitative analytical skills that are necessary for investing and managing investment portfolios of financial assets largely, equity and bond. This course covers a wide range of topics in the areas of modern investment management. The major topics covered include: fundamental analysis, equity valuation, industry analysis, asset allocation, technical analysis, market efficiency, behavioral finance, market micro-structure, portfolio optimization, asset pricing theories, equity portfolio management strategies, evaluation of portfolio performance, portfolio risk management, equity option and equity portfolio management strategies. After completing this course, students will have a deep understanding of the characteristics of individual securities as well as of the theory and practice of optimally combining securities into portfolios of equities and fixed income securities in domestic and international markets. Students targeting the professional career in asset management, investment banking, and portfolio management or planning to take the CFA examination will find this course very useful.

II. Learning outcomes

Upon completing this course, students will be able to:

· Construct an investment portfolio that is sound in terms of investment principles and portfolio performance.
· Analyze investment portfolios and take an intelligent investment decisions.
· Value a stock using different equity valuation models and their differences.
· Develop risk and return measures for portfolio of assets and manage the risk of portfolios.
· Understand how risk preference drives optimal asset allocation decisions.
· Understand the principles of portfolio theory and analyze effect of diversification on investment portfolios.
· Apply equity and bond portfolio management strategies and portfolio performance evaluation methods.
· Understand option derivatives based risk management strategies for equity portfolios.
III. Textbook and other resources


Required textbook

· Investments (10th ) by Bodie, Kane, Marcus and Mohanty (BKMM).


Supplementary reference materials

· Analysis of Investments & Management of Portfolios by Reilly and Brown
· Modern Portfolio Theory and Investment Analysis, by Elton Gruber, Brown & Goetzmann
· Damodaran on Valuation by Aswath Damodaran
· Investment Valuation by Aswath Damodaran
· Security Analysis by Benjamin Graham, David Dodd.

Calculator: You need to bring your calculator to every class.


IV. Evaluation components and weights

Components
Weights (%)
Class Participation
10%
Group Project
20%
Quizzes
30%
End Term Exam
40%

V. Academic Integrity and Discipline

Students are expected to demonstrate high order of academic integrity being attentive in the class and regularly read the prescribed reading material. Students are not allowed to use cell phones and computers inside the class room.



VI. Tentative course outlines

Session & Readings
Topics
Session 1-7
BKMM Chapter :
1,17, 18, 19, 12, 11,3		· Analysis of equity investment
o Economic, Industry, Company analysis
o Equity valuation models: Absolute (DDM, FCFE, FCFF) and Relative (P/E, P/B, P/S)
o Technical analysis
o Efficient market hypothesis & behavioral finance
o Trading mechanics & market micro-structure
Session 8-14
BKMM Chapter : 5,6,7,8,9,10,13		· Portfolio theories and asset pricing models
o Portfolio risk-return measurement
o Markowitz mean-variance portfolio theory
o Diversification and asset allocation
o Utility functions and measures of risk aversion
o Optimal portfolio allocation between risky and risk-free assets
o Optimal portfolio allocation with two risky assets
o Optimal portfolios with a risk-free asset and many risky assets
o Single index model
o Capital Asset Pricing Model
o Arbitrage pricing theory
o Multi-factor models
Session 15
BKMM Chapter : 27		· Equity portfolio management
o Passive and active portfolio management
Session 16
BKMM Chapter : 24		· Evaluation of portfolio performance
Session 17-18
BKMM Chapter : 20,21 		· Portfolio risk management
· Equity option derivatives
Session 19-20
BKMM Chapter : 14,15, 16		· Bond portfolio management
o Risk analysis in bond investment
o Bond portfolio management strategies
* Extra class will be taken for the group project presentation.
* Based on the progress of the class, minor changes (additions or deletions) may be made to this list.

Created By: Debasis Mohanty on 04/14/2020 at 06:46 PM
Category: BM 19-21 T-IV Doctype: Document

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