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Course Title Investment Analysis and Portfolio ManagementInstructor L. Ramprasath

Course credit 3

No. of sessions 15

Session Duration 120 minutes

Term V

Year PGP-II, 2014-15

1. IntroductionIn the past several decades, the field of investment analysis has evolved from a

descriptive process to a highly formalized and quantitative area of study. The rapidlychanging financial environment and the number of new instruments available have made

analysis a task which can only be carried out by persons who have been equipped withupdated skills. This course provides the basic framework that can be used for creating,

managing and evaluating portfolios. Topics include recognizing risk and returncharacteristics of investments, developing strategic asset allocations, utilizing options to

manage portfolio risk and evaluating portfolio and manager performance relative to

investment objectives and appropriate benchmarks.

2. Objectives and scopeBroadly, the course covers

Risk- return trade offs

Optimal portfolio selection

Asset Pricing Models

Market Efficiency and its implications

Design, Management and Evaluation of Portfolios of Securities

3. Reading Material

(a) Text Book: (BKM) Investments and Portfolio Management: 9th

Edition by Zvi Bodie,

Alex Kane and Alan J. Marcus (Paperback Global Edition)

(b) Other Reference Books:

1. Elton etal : Modern Portfolio Theory and Investment Analysis (2007): 7th

Edition:Wiley India

2. Peter L. Bernstein: Capital Ideas: The Improbable Origins of Modern Wall

Street(2005) John Wiley and Sons

INDIAN INSTITUTE OF MANAGEMENT KOZHIKODE

Post Graduate Pro ramme 2013-15

8/10/2019 Iapm Course Outline Updated

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4. Evaluation Scheme

Components Weightage(%)

Quizzes/Class participation 15%

Mid Term Exam 35%

End Term Exam 50%

5. Session Plan

Tentative#

sessions Topic

ReadingsBKM Chapters

1 Roadmap; Risk versus Return 6

2

Portfolio Theory: Mean Variance analysis;

Efficient frontier; Effects of diversification 7

2

Asset Pricing Models: Capital Market Line

(CML) and the Security Market Line (SML);CAPM Extensions, Testing, Limitations;

Arbitrage Pricing Theory; Equilibrium models

and Portfolio management

8, 9, 10

2Efficient Market Hypothesis (EMH); Forms ofmarket efficiencies; Portfolio management vs

EMH; Challenges in testing EMH

11

2 Valuation Models: A review; Minimizing bias;Valuation and portfolio management

2Portfolio Management Tools: Use ofDerivatives; Modifying the risk return

characteristics of a portfolio

17, 18, 19

2

Portfolio Performance Management:

Challenges in measuring returns; Risk-adjusted

return measures; Manipulation-proof

performance measure

24

1 Active Portfolio Management 27

1 Some recent topics

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