Investment: Attributes, Economic vs. Financial Investment, Investment and speculation, Featuresof a good investment, Investment Process.Financial Instruments: Money Market Instruments, Capital Market Instruments, Derivatives.
Securities Market: Primary Market - Factors to be considered to enter the primary market, Modesof raising funds, Secondary Market- Major Players in the secondary market, Functioning ofStock Exchanges, Trading and Settlement Procedures, Leading Stock Exchanges in India.Stock Market Indicators- Types of stock market Indices, Indices of Indian Stock Exchanges.
(Theory & Problems)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 of Portfolio Risk andReturn, Portfolio with 2 assets, Portfolio with more than 2 assets.
(Theory & Problems) Valuation of securities: Bond- Bond features, Types of Bonds, Determinants of interest rates,Bond Management Strategies, Bond Valuation, Bond Duration.PREFERENCE Shares- Concept, Features, Yields.Equity shares- Concept, Valuation, Dividend Valuation models.
Macro-Economic and Industry Analysis: Fundamental analysis-EIC Frame Work, GlobalEconomy, Domestic Economy, Business Cycles, Industry Analysis.Company Analysis- Financial Statement Analysis, Ratio Analysis.Technical Analysis – Concept, Theories- Dow Theory, Eliot wave theory. Charts-Types, Trendand Trend Reversal Patterns. Mathematical Indicators – Moving averages, ROC, RSI, andMarket Indicators. (Problems in company analysis & Technical analysis)Market Efficiency and Behavioural Finance: Random walk and Efficient Market Hypothesis,Forms of Market Efficiency, Empiricial test for different forms of market efficiency.Behavioural Finance – Interpretation, Biases and critiques. (Theory only)
(Theory & Problems) Modern Portfolio Theory: Markowitz Model -Portfolio Selection, Opportunity set, EfficientFrontier. Beta Measurement and Sharpe Single Index ModelCapital Asset pricing model: Basic Assumptions, CAPM Equation, Security Market line,Extension of Capital Asset pricing Model - Capital market line, SML VS CML.Arbitrage Pricing Theory: Arbitrage, Equation, Assumption, Equilibrium, APT and CAPM.
(Theory & Problems) Portfolio Management: Diversification- Investment objectives, Risk Assessment, Selection ofasset mix, Risk, Return and benefits from diversification.Mutual Funds:, Mutual Fund types, Performance of Mutual Funds-NAV. Performance evaluationof Managed Portfolios- Treynor, Sharpe and Jensen Measures