Security Analysis and Portfolio Management – TYBBI Syllabus

Modules at a Glance

Security Analysis and Portfolio Management – Syllabus Overview

• An overview.

1. Investment alternatives
2. Investment attributes
3. How does various investment avenues compare?
4. Investment versus speculation
5. Financial markets
6. Portfolio management process
7. Sources of investment risk
8. Approaches to investment decision making

• Investment alternatives:

1. Non-marketable financial assets
2. Money market instruments
3. Bonds or fixed income securities
4. Equity shares
5. Mutual fund schemes
6. Life insurance
7. Real estate
8. Precious objects.

• Securities market:

1. Primary equity market
2. Secondary market and its operations
3. NSE and BSE.
4. Buying and selling shares
5. Stock market abroad
6. Government securities market
7. Corporate dept market
8. Money market

• Risk and return:

1. Measuring historical return
2. Measuring historical risk
3. Measuring expected (Ex Ante) Return and risk

• the times value of money

1. time lines and notation
2. future value of a single amount
3. present value of a single amount
4. future value of an annuity
5. present value of an annuity
6. intra- year compounding and discounting

• financial statement analysis

1. financial statement
2. financial ratio
3. comparative analysis
4. du point analysis
5. applications of financial statement analysis
6. problems in financial statement analysis
7. problems in financial statement analysis
8. guidelines for financial statement analysis.

• Portfolio theory

1. Portfolio return
2. Portfolio risk
3. Portfolio risk
4. Portfolio diversification
5. Optimal portfolio
6. The single index model

• Capital asset pricing model

1. Basic assumptions
2. Capital market line
3. Security market line
4. Inputs required for applying CAPM
5. Empirical evidence on capital asset pricing model

• Efficient market hypothesis:

1. Random walk and search for theory
2. What is an efficient market?
3. Empirical evidence on weak form efficient market hypothesis.
4. Empirical evidence on semi-strong from efficient market hypothesis
5. Empirical evidence on the strong- form efficient hypothesis.
6. An alternative paradigm
7. What is the verdict
8. Implications for investment analysis

• Analysis and valuation of debt

1. Types and feature of Debt instruments
2. Bond pricing
3. Bond yields
4. Risk in debt
5. Interest rate risk
6. Rating of debt securities
7. The yield curve
8. Determinants of interest rates
9. Analysis of convertible bonds
10. Bond portfolio management

• Equity valuation

1. Balance sheet valuation
2. Dividend discount model
3. Earning multiplier approach
4. Earning- price ratio, expected return and growth
5. Equity portfolio management

• Fundamental analysis

1. Macroeconomic analysis
2. Industry analysis
3. Company analysis: the study of financials
4. Company analysis: going beyond numbers
5. Estimation of intrinsic value
6. Some tools for judging under valuation of overvaluation

• Technical analysis

1. What is technical analysis
2. Charting techniques
3. Technical indicators
4. Testing technical trading rules
5. Evaluation of technical analysis

• Options:

1. How options work
2. Options and their payoffs just before expiration
3. Option strategies
4. Factors determining option values
5. Binomial model for option values
6. Black and schools model
7. Equity options in India

• Futures:

1. Feature of a future contract
2. Future contracts: the global scene
3. Equity futures in India
4. Pricing of future contracts
5. Use of futures contracts.

• Port folio management framework

1. Specification of investment objectives & constraints
2. Selection of asset mix.
3. Formation of port folio strategy
4. Selection of securities port folio execution
5. Port folio revision
6. Performance evaluation