Podcast
Questions and Answers
What is the primary objective of the Security Analysis and Portfolio Management course?
What is the primary objective of the Security Analysis and Portfolio Management course?
- To train students in labor and industrial laws.
- To teach students advanced econometric modeling techniques.
- To familiarize students with the basics of security analysis and portfolio management. (correct)
- To enable students to become financial auditors.
Which of the following best describes unsystematic risk?
Which of the following best describes unsystematic risk?
- Risk that is related to the operational performance of a specific company. (correct)
- Risk that cannot be diversified away.
- Risk that is caused by changes in interest rates.
- Risk that affects the entire market.
What does the Markowitz model primarily deal with?
What does the Markowitz model primarily deal with?
- Predicting the future value of stocks using time series analysis.
- Analyzing macroeconomic factors that impact stock markets.
- Construction of an optimal investment portfolio by considering the risk and return of assets. (correct)
- Regulating trading activities in the equities markets.
What is the Security Market Line (SML) derived from?
What is the Security Market Line (SML) derived from?
Which of these is NOT typically used in measuring portfolio performance?
Which of these is NOT typically used in measuring portfolio performance?
Which of the following best describes the purpose of diversification in portfolio management?
Which of the following best describes the purpose of diversification in portfolio management?
What does 'market timing' refer to in the context of portfolio investment performance?
What does 'market timing' refer to in the context of portfolio investment performance?
Which of the following is a core component of fundamental analysis?
Which of the following is a core component of fundamental analysis?
Flashcards
Security Analysis
Security Analysis
The process of analyzing the value of securities (stocks, bonds, etc.) and selecting them for inclusion in a portfolio. This involves evaluating the financial health, future prospects, and risk associated with particular investments.
Portfolio Management
Portfolio Management
The ongoing management of a collection of investments (a portfolio) to achieve specific financial goals. This involves balancing risk, return, and diversification.
Systematic Risk
Systematic Risk
The inherent risk associated with any investment due to factors affecting the entire market, such as economic conditions or interest rate changes.
Unsystematic Risk
Unsystematic Risk
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Markowitz Model
Markowitz Model
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Capital Asset Pricing Model (CAPM)
Capital Asset Pricing Model (CAPM)
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Arbitrage Pricing Theory (APT)
Arbitrage Pricing Theory (APT)
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Portfolio Performance Evaluation
Portfolio Performance Evaluation
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Study Notes
Security Analysis and Portfolio Management (DSE 601)
- Course Objective: To introduce students to the fundamentals of security analysis and portfolio management.
- Total Marks: 100 (Internal Assessment 20 + Term End 80)
- Course Structure:
- 60 Lectures
- 4 Tutorials
- Unit I: Investments
- Covers the meaning, processes, and alternative investment strategies.
- Explores risk and return, systematic and unsystematic risk, along with their measurement.
- Includes foundational & technical analysis concepts.
- Unit II: Portfolio Analysis & Management
- Focuses on traditional portfolio analysis.
- Explains the impact of combining securities and diversification.
- Introduces the Markowitz model and the efficient frontier.
- Unit III: Capital Asset Pricing
- Details the Capital Asset Pricing Model (CAPM) and its assumptions.
- Discusses the capital market line, security market line, and market models.
- Explores arbitrage pricing theory and factor models.
- Includes one and two-factor models and the return generating process
- Unit IV: Portfolio Performance
- Focuses on measuring and evaluating portfolio performance.
- Covers risk and return, risk adjustment, and performance measures (Sharpe, Treynor, Jensen).
- Includes stock selection and market timing strategies.
Textbooks
- Fischer: Security Analysis and Portfolio Management (Pearson, New Delhi).
- Ranganathan: Security Analysis and Portfolio Management (Pearson, New Delhi).
- Van Horne J.C: Fundamentals of Financial Management (Prentice Hall of India, New Delhi).
- Prasanna Chandra: Financial Management Theory and Practice (Tata McGraw Hill, New Delhi).
- Pandey I.M.: Financial Management (Vikas Publishing House, New Delhi).
- Bhalla V.K.: Modern Working Capital Management (Anmol Pub, Delhi).
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