B.Com. (Financial Markets) Security Analysis and Portfolio Management Syllabus - Mumbai University

Module I: Introduction to Investment and Security Analysis Description: Meaning of investment – speculation and Gambling – Investment avenues Types of investors – Investment objectives – The investment process -Security Analysis Meaning of security – Types of securities – Meaning of security analysis Risk and Return Computation of return – Meaning and definition of risk – Types: (Systematic risk- Market risk, Purchasing power risk, Interest rate risk, Unsystematic risk- Business risk (Internal, External), Financial risk) – Minimising risk exposure -Risk measurement - Standard deviation – Meaning of Beta – Computation and interpretation – Use of beta in estimating returns (Including simple problems)

Module II: Fundamental Analysis & Financial Statement Evaluation

• Economic Analysis -Impact of GDP, Inflation and Interest Rates on security prices-Fiscal and Monetary Policy implications on investment returns
• Industry Analysis -Industry life cycle and profitability-Cost structure and entry barriers- Competitive advantage and financial sustainability
• Company Analysis -Analysis of financial statements-Ratio Analysis:Liquidity Ratios- Profitability Ratios-Solvency Ratios-Efficiency Ratios-Earnings quality and cash flow analysis

Module III: Portfolio Management – Introduction and Process

• Portfolio Management -Meaning, and phases Portfolio Management- valuation- Portfolio Analysis – Selection and Evaluation –– Reasons to hold portfolio – Diversification analysis – Markowitz’s Model – Assumptions – Specific model – Risk and return optimization – Efficient frontier – Efficient portfolios – Leveraged portfolios – Corner portfolios – Sharpe’s Single Index model – Portfolio evaluation measures – Sharpe’s Performance Index – Treynor’s Performance Index – Jensen’s Performance Index.

Module IV: Theories of Security Analysis

• Dow Jones Theory- Elliot Wave Theory- Random walk hypothesis-Forms of market efficiency-CAPM-Capital market line and security market line-Arbitrage pricing theory-Distinguish between CAPM and APT.

Reference Books

• Ranganatham M. & Madhumathi R. – Investment Analysis and Portfolio Management, Pearson India
• Preeti Singh – Investment Management, Himalaya Publishing House
• Punithavathy Pandian – Security Analysis and Portfolio Management, Vikas Publishing
• Avadhani V. A. – Investment and Securities Market in India, Himalaya Publishing House