Format For Instruction Plan [for Courses with Lectures and Tutorials ]
Course No. MGT521 Course Title: SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT L: 4 T: 1 P: 0 Cr: 5
TextBook
1. Chandra,Prasanna, Security Analysis and Portfolio Management,Tata Mc Graw Hills, New Delhi, 2008.
Other Readings
Sr. No. Jouranls atricles as compulsary readings (specific articles, Complete reference)
9 "Its all a matter of perspective Market performance in BRIC countries depends on one vintage point"http://www.russell.com/indexes/about/articles.
10 CAPM vs. APT with macro economic variables: evidence from the Indian stock
markethttp://findarticles.com/p/articles/mi_6771/is_1_4/ai_n28532457/pg_5/?tag=content;col1
11 'THE WARREN BUFFETT WAY',http://www.sfu.ca/~poitras/BUFFET.pdf
12 Efficient Market Theory: In relation with Bonus isssues Announcement in Indian Market, paradgm, Vol XII, No.2, July-Dec 2008, Pp 62-71
13 Semi Strong Form Efficiency: Market Reaction to Dividend and earnings Announcements in Malaysian Stock Exchange", Vol.16, No.2, July 2010, Pp 36-55
14 "Prediction of Stock Returns for Growth firms- A Fundamental Analysis" Vision, Vol 13, No. 3, July- Sept 2009, Pp 31-39
Relevant Websites
Sr. No. Web adress (only if relevant to the courses) Salient Features
18 www.yahoofinance.com Provide all current and past data related to stock prices
21 Capital line database providing historical and current data information about the stock prices
Part 1
Week 1 Lecture 1 Introduction to security analysis. Investment vs. speculation, Book :1,1/ Ch1 1/ Ref. 6/ Indian stock
Investment vs. Savings, Portfolio management process, Ch2 market- A Strong
Emerging market in Asia
Lecture 2 Investment Alternatives and their evaluation Approaches to Book :1,1/ Ch1 Case- Meet 3 Murthy 5/
investment decision making Pp-18-19
Lecture 3 Securities Market-Primary and Secondary Market, Trading Mechanism Book :1,1/ Ch3
Lecture 4 Fundamental Analysis: Economic Analysis including Macro economic Book :1,1/Ch14 HomeWork 1 Allocation Ref. 14/ Prediction of
analysis Stock Returns for Growth
firms- A Fundamental
Analysis
Lecture 6 Company analysis: Strategy analysis, Financial analysis, accounting Book :1,1/Ch15 Balance sheet, Case-
analysis, estimation of intrinsic value Why Read an Annual
Report/ 5/ pp332-333
Lecture 7 Equity valuation models: Return, anticipated return, present value of ->Reference :4,4/ Ch11
return
Lecture 8 Balance sheet valuation model Book :1,1/Ch13 HomeWork 3 Allocation
Week 3 Lecture 9 Dividend discount model: Multi period valuation model, Book :1,1/Ch13
Lecture 10 constant growth model, Two stage growth model, ->Reference :4,4/Ch11 HomeWork 1 Practical Problems
->Reference :1,1/ Ch 13 Submission
Lecture 11 Three phase model, Free Cash Flow Model. Book :1,1/Ch13 HomeWork 2 Allocation
->Reference :4,4/ Ch 11
Lecture 12 Earning Multiplier approach: Price ratio Book :1,1/Ch13
Week 4 Lecture 13 Expected Return & Growth ->Reference :1,1/ Ch 13 Term Paper 1 Allocation
Part 2
Week 4 Lecture 15 Bond yield, Risk in Bonds, Ratting of Bonds ->Reference :1,1/ Ch 11 Practical Problems
Lecture 18 Technical Analysis: Introduction, assumptions, technical trading rules ->Reference :4,4/ ch 13 Ref. 7/ Navigating with
Technical and
Fundamental Analysis
Lecture 19 Dow theory: introduction, trend: Primary and secondary trend ->Reference :4,4/ Ch 13
Lecture 20 support and resistance level, indicators: volume of trade, short sales, ->Reference :4,4/ Ch 13 HomeWork 2
odd lot trading Submission
Lecture 23 Charts: Tops and bottoms; Head and shoulders, triangles; flags, ->Reference :1,1/ Ch 9
candle and sticks
Lecture 24 Efficient market thery: Random walk theory and efficient market ->Reference :1,1/ Ch 9 Quiz 1 Ref. 12/ Efficient Market
hypothesis, weak form of Efficient Market Hypothesis Theory: In relation with
Bonus isssues
Announcement in Indian
Market
Week 7 Lecture 25 Empirical evidence on weak form efficient market hypothesis, Test of ->Reference :1,1/ Ch 9
weak form efficient market
Lecture 26 Serial Correlation tests, Run test, Filter rules tests ->Reference :1,1/ Ch 9 Practical Problems
Lecture 27 Semi strong Form: Empirical evidence on semi strong form portfolio ->Reference :1,1/ Ch 9 Ref. 13/ Semi Strong Form
study, Strong form efficient market Efficiency: Market
Reaction to Dividend and
earnings Announcements
in Malaysian Stock
Exchange
Lecture 28 Event study & Market inefficiencies and implications ->Reference :1,1/ Ch9
MID-TERM
Part 3
Week 8 Lecture 29 Portfolio-Risk Return Analysis: Examples and Problems ->Reference :1,1/ Ch7
->Reference :4,4/ Ch17
Lecture 30 Markowitz Model: Parameters ,criteria ->Reference :1,1/ Ch7
->Reference :4,4/ Ch17
Lecture 31 Risk Return Optimization, Efficient Frontier ->Reference :1,1/ Ch7 HomeWork 4 Allocation
->Reference :4,4/ Ch17
Lecture 32 Sharpe Index Model, Corner Portfolio ->Reference :4,4/ Ch18
Week 9 Lecture 33 Sharpe Index Model: Optimal Portfolio ->Reference :4,4/ Ch18
Lecture 34 Two factor and multi factor models ->Reference :4,4/ Ch18
Lecture 36 Portfolio Management including Growth and Value investing and style ->Reference :1,1/ Ch21 mini case- 1/ Pp 626
analysis
Week 12 Lecture 45 Treynors index & Jensens index ->Reference :4,4/ Ch20 Practical Problems
->Reference :5,5/ Ch22 Pp
478-489
Lecture 46 Forecasting Portfolio Performance ->Reference :5,5/Ch22 PP 489
Lecture 47 Portfolio Revision- Passive & Active Management ->Reference :4,4/Ch21 Quiz 2 Case- I thought Low PE
->Reference :5,5/Ch21 was beeter, 5/ Pp466-467
Spill Over
Week 14 Lecture 53 Investment strategies of Warren Buffet Ref.11
Lecture 54 Basic Terminology of Derivative and Commodity Market ->Reference :1,1/ Ch 17 -18
Homework 1 Fundamental analysis: Students will choose one company and perform Economic, company and Individual
industry analysis and determine the intrinsic value of the company's stock
Homework 2 Valuation of stocks of specific companies using different valuation models- Group of Four Group
students each will be assigned one specific company and they will apply the valuation techniques
as and when these are discussed in the class
Homework 3 Dummy Portfolio Management- Students will be divided into group of 5-10 each & they have to Group
manage a dummy portfolio as per the guidelines issued by COS-F. This assignment will be taken
back at the end of 11th week. The groups will present their portfolio strategies in a contest which
will be held in 12th week
Homework 4 Event Study- group of Four students each will conduct an event study taking the stock market Group
data and assessing the impact of specific announcements on the profitability of stocks.
Evaluation will be based upon written Report and Viva
*Normally all the homeworks shall be submitted online but in special courses where homeworks cannot be submited online , the insructor can edit the mode of submission while
entering the IP Details
Homework 3 4 15 45
Quiz 2 15 30
Term Paper 1 25 25
Total :- 100
* In ENG courses wherever the total exceeds 100, consider x best out of y components of CA, as explained in teacher's guide available on the UMS
Tutorial 2 Securities Market: Case Getting even with inflation 5/ Pp75-76 Case analysis
Tutorial 6 Moving Average and First review of Term paper Problem solving
Tutorial 7 Discussion on the Article: Efficient Market Theory: In relation with Ref. 12
Bonus isssues Announcement in Indian Market
After Mid-Term
Tutorial 8 Event study- Practical example through Excel
Tutorial 11 CAPM: Beta Estimations in the Indian Stock Market: Stability, Ref. 15
Sationarity and Computational Considerations
Tutorial 13 Revision