Investment: Attributes, Economic vs. Financial Investment, Investment andspeculation, Features of a good investment, Investment Process.Financial Instruments: Money Market Instruments, Capital MarketInstruments, Derivatives.
Securities Market: Primary Market - Factors to be considered to enter theprimary market, Modes of raising funds, Issue Management-Pre and PostIssue Management. Secondary Market- Major Players in the secondarymarket, Functioning of Stock Exchanges, Trading and Settlement Procedures,Leading Stock Exchanges in India.Stock Market Indicators- Types of stock market Indices, Indices of IndianStock Exchanges.Mutual Funds: Functions of Investment companies, Classification ofInvestment companies, Mutual Fund types, Performance of Mutual Funds-NAV.
Risk and Return Concepts: Concept of Risk, Types of Risk- Systematic risk,Unsystematic risk, Calculation of Risk and returns.Portfolio Risk and Return: Expected returns of a portfolio, Calculation ofPortfolio Risk and Return, Portfolio with 2 assets, Portfolio with more than 2assets.
Valuation of securities: Bond- Bond features, Types of Bonds, Determinantsof interest rates, Bond Management Strategies, Bond Valuation, BondDuration.Preference Shares- Concept, Features, Yields.Equity shares- Concept, Valuation, Dividend Valuation models.
Macro-Economic and Industry Analysis:Fundamentalanalysis-EICFrame Work, Global Economy, Domestic Economy, Business Cycles,Industry Analysis.Company Analysis- Financial Statement Analysis, Ratio Analysis.Technical Analysis – Concept, Theories- Dow Theory, Eliot wave theory.Charts-Types, Trend and Trend Reversal Patterns. Mathematical Indicators –Moving averages, ROC, RSI, Market Indicators. (Problems in companyanalysis & Technical analysis)
Modern Portfolio Theory:Markowitz Model -Portfolio Selection,Opportunity set, Efficient Frontier.Capital Asset pricing model: Basic Assumptions, CAPM Equation, SecurityMarket line, Extension of Capital Asset pricing Model - Capital market line,SML VS CML.Arbitrage Pricing Theory: Arbitrage, Equation, Assumption, Equilibrium,APT and CAPM.
Market Efficiency and Behavioral Finance: Random walk and EfficientMarket Hypothesis, Forms of Market Efficiency,Empiricial test for different forms of market efficiency. Behavioral Finance – Interpretation,Biases and critiques.
Portfolio Management: Diversification- Investment objectives, RiskAssessment, Selection of asset mix, Risk, Return and benefits fromdiversification.Portfolio Management Strategies: Active and Passive Portfolio Managementstrategy.Portfolio Revision: Portfolio Revision Strategies – Objectives,Performanceplans.Portfolio Evaluation: Holding periods returns, Measures of portfolioperformance.(QUESTION PAPER- 50% Problems, 50% Theory)