Concepts of investment- Financial and non-financial forms of investment – Objectives offinancial investment, investment methods – Security and non-security forms of investment – Sources ofinvestment information- Investment Instruments
primary and secondary markets – major players and instruments in secondary market -Functioning of stock exchanges, trading and settlement procedures at NSE & BSE.. Stock markets guidelineson primary & secondary markets.
bond and fixed income instruments valuation -bond pricing theorems, duration ofbond and immunisation of interest risk, term structure of interest rate, determination of yield curves, valuationof equity and preference shares (Dividend capitalisation & CAPM).
concept of total risk, factors contributing to total risk, systematic and unsystematicrisk, default risk, interest rate risk, market risk, management risk, purchasing power risk. Risk & risk aversion.Capital allocation between risky & risk free assets-Utility analysis
Concept of intrinsic value. Objectives and beliefs of fundamental analysts. Economy-Industry-Company framework, Economic analysis and forecasting. Theory of Technical analysis, points and figures chart, bar chart, contrary opinions theory, confidence index RSA, RSI,Moving average analysis, Japanese Candlesticks.
The market mechanism, testable hypothesis about market efficiency,implications of efficiency market hypothesis for security analysis and portfolio management. Asset pricing theories, CAPM & Arbitrage pricing theories.
Asset allocation decision. Dominant & Efficient portfolio – simple diversification,Markowitz diversification model, selecting an optimal portfolio – Sharpe single index model. Determination of corner portfolio. Process of portfolio management – International Diversification.
Sharp & Treynor & Jensen’s measure. Portfolio revision – Active andpassive strategies & formula plans in portfolio revision. Mutual funds- types, performance evaluation of mutual funds, functions of Asset Management Companies.