Lovely Professional University,Punjab

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

Course Planner :- 11621 :: Ashu Kakkar

TextBook

1. Chandra,Prasanna, Security Analysis and Portfolio Management,Tata Mc Graw Hills, New Delhi, 2008.

Other Specific Books

2. Fischer & Jordon, Security Analysis and Portfolio Management, Prentice Hall.
3. Reilly/ Brown, Investment Analysis and Portfolio Management, Cengage Learning, Eighth Edition,2010
4. Pandian P., Security Analysis and Portfolio Manegement, Vikas Publishing, 2008
5. Bhat Sudhindra, Security Analysis and Portfolio Management, Excel Publications, First Edition, 2009

Other Readings

Sr. No. Jouranls atricles as compulsary readings (specific articles, Complete reference)

6 "Indian stock market- A Strong Emerging market in Asia" http://www.zimbio/Indian+stock+market/articles

7 Wasankar,Prashant Navigating with Technical and Fundamental

Analysis"http://wasankarwealth.com/Articals_Pdf/633686522890007500_Navigating%20with%20 Technical%20and%20Fundamentals%2023%20JAN %202009.pdf
8 "Goldman Sachs the great American Financial markets bubble machine"http:// www.marketoracle.co.uk/article12545.html

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

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 15 "Beta Estimations in the Indian Stock Market: Stability, Sationarity and Computational Considerations" Decision, Indian Institute of Management, calcutta, Vol 35, No.2,
July-Dec 2008, Pp 63-85

Relevant Websites

Sr. No. Web adress (only if relevant to the courses) Salient Features

16 www.nseindia.com Providing the detailed information about the stock market

17 www.bseindia.com Providing the detailed information about the Sensex/stock market

18 www.yahoofinance.com Provide all current and past data related to stock prices

19 http://in.reuters.com/ Provide analytical information on stocks, mutual fund, commodity market

20 Moneycontrol.com Providing the day-to-day happenings of the stock market

21 Capital line database providing historical and current data information about the stock prices

22 http://www.psnacet.edu.in/courses/MBA/sapm/lecture- Portfolio mgt system

23 http://www.managementparadise.com/forums/stock Steps for form filling to become member of stock exchange

24 http://www.capitalmarket.com/MarketBeat/nsmargin.h Margin Claculations

25 http://www.bseindia.com/mktlive/bhavcopy.asp Access to Daily bhav Copy

Detailed Plan For Lectures

Pedagogical tool
Chapters/Sections of
Homework to be Demonstration/case
Week No. Lecture No. Topic Textbook/other
Assigned to students study/images/anmation
reference
ctc. planned

Part 1
Week 1 Lecture 1 Introduction to security analysis. Investment vs. speculation, Investment vs. Book :1,1/ Ch1 1/ Ref. 6/ Indian stock market-
Savings, Portfolio management process, Ch2 A Strong Emerging market in
Asia
Lecture 2 Investment Alternatives and their evaluation Approaches to investment Book :1,1/ Ch1 Case- Meet 3 Murthy 5/
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 analysis Book :1,1/Ch14 HomeWork 1 Allocation Ref. 14/ Prediction of Stock
Returns for Growth firms-
A Fundamental Analysis

Week 2 Lecture 5 Industry analysis: Types of Industry, Industry life cycle Book :1,1/Ch14

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Part 1
Week 2 Lecture 6 Company analysis: Strategy analysis, Financial analysis, accounting analysis, Book :1,1/Ch15 Balance sheet, Case- Why
estimation of intrinsic value Read an Annual Report/ 5/
pp332-333
Lecture 7 Equity valuation models: Return, anticipated return, present value of return ->Reference :4,4/ Ch11

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

Lecture 14 Bond valuation, characteristics, Bond Prices ->Reference :1,1/ Ch 11

Part 2
Week 4 Lecture 15 Bond yield, Risk in Bonds, Ratting of Bonds ->Reference :1,1/ Ch 11 Practical Problems

Lecture 16 Yield curve, Determinants of interest rates ->Reference :1,1/ Ch 11

Week 5 Lecture 17 Analysis of convertible bonds ->Reference :1,1/ Ch 11

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, odd lot ->Reference :4,4/ Ch 13 HomeWork 2
trading Submission

Week 6 Lecture 21 Moving Average: index and stock prices moving average, comparison of two ->Reference :4,4/ Ch 13
moving averages

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Part 2
Week 6 Lecture 22 Oscillators, Relative strength index, Charts: point and figure charts, Bar ->Reference :1,1/ Ch 16 Case- McDonald's Corp., 2/
charts, chart patterns: V formation ->Reference :4,4/ Ch 13 Pp535

Lecture 23 Charts: Tops and bottoms; Head and shoulders, triangles; flags, candle and ->Reference :1,1/ Ch 9
sticks
Lecture 24 Efficient market thery: Random walk theory and efficient market hypothesis, ->Reference :1,1/ Ch 9 Quiz 1 Ref. 12/ Efficient Market
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 weak ->Reference :1,1/ Ch 9
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 study, ->Reference :1,1/ Ch 9 Ref. 13/ Semi Strong Form
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 35 Optimum Portfolio, Optimum Portfolio with Short Sales ->Reference :4,4/ Ch18 Case- Quan Tech Partners 2/
Pp 629

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Part 3
Week 9 Lecture 36 Portfolio Management including Growth and Value investing and style ->Reference :1,1/ Ch21 mini case- 1/ Pp 626
analysis

Week 10 Lecture 37 Portfolio Construction & Analysis ->Reference :1,1/Ch 21

->Reference :4,4/Ch 16
Lecture 38 Capital Asset Pricing Model ->Reference :4,4/ Ch19 HomeWork 4 Ref. 15/ "Beta Estimations
->Reference :5,5/ Ch20 Submission in the Indian Stock Market:
Stability, Sationarity and
Computational
Considerations
Lecture 39 Capital Asset Pricing Model ->Reference :4,4/ Ch19
->Reference :5,5/ Ch20
Lecture 40 Arbitrage Pricing Theory ->Reference :4,4/Ch19 CAPM vs. APT with macro
->Reference :5,5/Ch20 economic variables: evidence
from the Indian stock
market/ Ref. 10
Part 4
Week 11 Lecture 41 Arbitrage Pricing Theory ->Reference :4,4/ Ch19 HomeWork 3
->Reference :5,5/ Ch20 Submission

Lecture 42 Portfolio Evaluation ->Reference :4,4/Ch20

->Reference :5,5/Ch22
Lecture 43 Sharpe Index ->Reference :4,4/Ch20 Practical Problems
->Reference :5,5/Ch22 Pp
478-489
Lecture 44 Treynors index & Jensens index ->Reference :4,4/Ch20 Term Paper 1 Practical Problems
->Reference :5,5/Ch22 PP Submission
478-489

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 was
->Reference :5,5/Ch21 beeter, 5/ Pp466-467

Lecture 48 Formula plans-Rupee Cost Averaging ->Reference :4,4/Ch21

->Reference :5,5/Ch21

Week 13 Lecture 49 Constant Rupee Plan ->Reference :4,4/Ch21

->Reference :5,5/Ch21

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Part 4
Week 13 Lecture 50 Constant Ratio Plan ->Reference :4,4/Ch21 Practical Problems
->Reference :5,5/Ch21
Lecture 51 variable Ratio Plan ->Reference :4,4/Ch21 Practical Problems
->Reference :5,5/Ch21
Lecture 52 Analysis of portfolio strategies of mutual fund schemes ->Reference :5,5/Ch21 Fact Sheets

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

Lecture 55 Behavioural Finance ->Reference :1,1/ Ch 10

Week 15 Lecture 56 Demo Trading Ref. 17, Ref. 23

Details of homework and case studies plan

Nature of homework
Homework No. Topic of the Homework (group/individuals/field work

Homework 1 Fundamental analysis: Students will choose one company and perform Economic, company and industry Individual
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 students each will Group
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 manage a Group
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 data and Group
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

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 Scheme for CA:out of 100*
Component Frequency Out of (If any) Marks for each Total Marks

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

List of suggested topics for term paper[at least 15] (Student to spend about 15 hrs on any one specified term paper)
Sr. No. Topic
1 Capital Asset Pricing Model- analysis of means of describing relationship between risk and return in an efficient market,
assumption and functions
2 Market anomalies- Evidence from the Indian market
3 Empirical investigation into stock price volatility
4 Performance evaluation of mutual funds
5 Market Fluctuation and Trend Analysis(including) stock price changes along with Sector index as well as bench mark Index
and analysis of the trends by using recent statistical measures.
6 Efficient Frontier: Analysis of Graphs of efficient frontier of Indian stock and Bonds and Comparison of these graphs
with the graphs from around the world
7 Short selling- concept, Practice of selling borrowed securities in anticipation that market price will fall over in near term,
Controls and relationship to market behaviour
8 On line trading mechanism of Indian stock market
9 Beta analysis and Random Walk: Use of risk factor calculation and pattern determination in investment and portfolio
analysis
10 Causal relationship between FII trading and stock price movements
11 Application and Evaluation of Indian Stock Market: Use of Markowitz Model
12 NISM-Series-V-A: Mutual Fund Distributors Certification Examination
13 Investment Analysis and Portfolio Management Module
14 Equity Research Module

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 Plan for Tutorial: (Please do not use these time slots for syllabus coverage)

Tutorial No. Topic Type of pedagogical tool(s) planned

(case analysis,problem solving test,role play,business game etc)

Tutorial 1 Introduction to BSE, NSE and Trading Mechanism Ref. 16

Tutorial 2 Securities Market: Case Getting even with inflation 5/ Pp75-76 Case analysis

Tutorial 3 Fundamental Analysis: Review Problems 4/ Pp 244-245 Case analysis

Tutorial 4 Equity Valuation Problem solving

Tutorial 5 First Review of Term Paper Viva

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 9 Second Review of Term Paper viva

Tutorial 10 Markowitz Model Problem solving

Tutorial 11 CAPM: Beta Estimations in the Indian Stock Market: Stability, Ref. 15
Sationarity and Computational Considerations

Tutorial 12 Current Issues in stock market Presentation

Tutorial 13 Revision

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