INVESTMENT MANAGEMENT

Course Code
: 16MBAFM4011
Credits
: 04
L:P:T:S
: 4:0:0:0
Marks
: 50
Exam Hours
: 03
Marks
: 50

CIE
SEE

Course Outcomes: At the end of the Course, the Student will be able
to:
CO Understand investment, types, avenues and their functions.
1
CO Evaluate the securities with the associated risk.
2
CO Understand the methods of evaluating the stocks.
3
CO Have conceptual background on Portfolio Theory and its importance.
4
CO Construct Efficient Portfolio.
5
CO Evaluate the portfolio formulated and take decision from time to time.
6
Mapping of Course Outcomes to Program Outcomes:
PO PO PO PO PO PO PO PO PO
1
2
3
4
5
6
7
8
9
CO
3
2
3
2
3
3
2
2
2
1
CO
2
2
3
3
2
2
1
2
2
2
CO
3
2
2
2
2
3
2
2
3
3
CO
2
2
3
3
2
2
2
1
2
4
CO
3
3
2
2
2
3
1
1
2
5
CO
3
3
3
2
2
2
1
1
2
6
SN
1

PO
10

PO
11

Hr Co
s
s
Investments: Meaning, types; Financial & Non-Financial forms of
9 CO
investment - Objectives of financial investment, investment methods1
security & non-security forms of investment. Sources of investment
Contents of Module

information - Investment Instruments. Financial markets-primary &

secondary markets - major players & instruments in secondary
market. Functioning of stock exchanges, trading & settlement
procedure at NSE & BSE. OTCEI and its function. Stock markets
indices, construction of security market index.
Securities Valuation: Valuation of Bonds, bond pricing theorems,
duration of bond & immunization of interest risk, determination of
yield. Valuation of Equity & Preference shares.
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 and Return, Portfolio with 2 assets, Portfolio with
more than 2 assets.
Fundamental & Technical Analysis: Economy-Industry-Company
framework, Economic analysis & forecasting. Theory of Technical
analysis, points & figures chart, bar chart, confidence index, RSA, RSI,
Moving average analysis, Japanese candlesticks. Behavior of stock
market prices - The market mechanism, testable hypothesis about
market efficiency, implications of efficiency market hypothesis in
portfolio management. Asset pricing theories, CAPM & Arbitrage
pricing theories.
Modern Portfolio Theory: Markowitz Model -Portfolio Selection,
Opportunity set, Efficient Frontier. Beta Measurement and Sharpe
Single Index Model
Capital 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.
Portfolio Evaluation & Revision: Portfolio performance evaluationSharp, Treynor & Jensen's measure. Portfolio revision -Active &
passive strategies & formula plans in portfolio revision. Mutual Fundstypes, performance evaluation of mutual funds, functions of Asset
management companies.

CO
2

CO
3

CO
4

CO
5

Text Books:
1) V.K Balla, Investment Management, S. Chand & Co, 19/e, 2013.
2) Donald E.Fischer & Ronald J.Jordan , Security Analysis and Portfolio
Management, Pearson, 6/e, ISBN : 9788177588118
3) Punithavathy Pandian , Security Analysis and Portfolio Management,
Vikas Publishing House, 3/e, 2009, ISBN : 9789325963085
Reference books:
1) Prasanna Chandra, Investment Analysis and Portfolio Management, Tata
Mc Graw Hill, 4/e, 2012, ISBN: 9781259005992

2) Dr. Mahipal Singh, Security Analysis with Investment and Portfolio

Management, 2011, ISBN: 9788182055193
3) Alexander, Sharpe, Bailley, Fundamentals of Investment, PHI, 3/e, 2008
Assessment Pattern
CIE- Continuous Internal Evaluation (50 Marks)
looms
TestsAssignmen QuizzeSelf
Mini
Seminar
Category
ts
s
Study
Project
Marks (out of30
10
10
50)
Remember
10
5
Understand
Apply
20
10
5
Analyze
Evaluate
Create
SEE- Semester End Examination (50 Marks)
Blooms
Category
Remember
Understand
Apply
Analyze
Evaluate
Create

Tests
10
10
30