MBA FM314/Investment Analysis and Portfolio ManagementCourse Learning Objectives:- To acquaint students with fundamental concepts of capital market and its instruments.
- To understand techniques to evaluate and analyze risk and return characteristics of securities such as individual stocks, mutual funds etc.
- To provide basic knowledge of the theories and practices of modern portfolio choice and investment decision
Course Learning outcome:- CO1: Understand the capital market and various Instruments for Investment.
- CO2: Assess the risk and return associated with investments and methods to value securities.
- CO3: Analyze the Economy, Industry and Company framework for Investment.
- CO4: Learn the theories of Portfolio management and also the tools and techniques for efficient portfolio management.
Executive Summary The course Investment Analysis and Portfolio Management provides a comprehensive understanding of investment decisions, financial markets, and the principles of portfolio construction. It introduces students to the investment environment, different investment avenues, risk and return analysis, security valuation, and fundamental and technical analysis. The course also covers portfolio theories such as Markowitz’s Portfolio Theory, the Capital Asset Pricing Model (CAPM), the Arbitrage Pricing Theory (APT), and other contemporary investment approaches. Through these concepts, students develop the ability to evaluate investment opportunities and understand the relationship between risk and expected return.
The course further focuses on portfolio management, including portfolio selection, diversification, asset allocation, portfolio performance evaluation, and portfolio revision. Students learn to apply tools such as the Sharpe Index, Treynor Index, and Jensen’s Alpha to assess portfolio performance, along with techniques for measuring and managing investment risk. The course also introduces emerging concepts in stock markets and modern investment practices, enabling students to make informed investment decisions and develop effective portfolio management strategies.