Module : FIN
305: Investment Analysis
Programme : B.Com
Credit Value : 12
Prerequisite
: FIN
201 : Introduction to Corporate Finance & Financial Management & FIN
204 Financial Risk Management
General Objectives
·
To
create an understanding of the concepts of Investment analysis.
·
To
develop skills for security market analysis and investment decisions.
Learning
Outcomes
Upon the successful completion of this
module, student should be able to:
·
explain
the basic tenets of security/ Investment analysis
·
critically
evaluate the Investment Environment
·
apply
and analyze techniques in evaluating Investment decisions
CONTENT
Unit-I:
Investment Analysis (8
Hours)
Financial and Economic Meaning-Features of
Investment-Objectives-Investment Vs Speculation-Investment Vs Gambling-Types of
Investors-investment Avenues.
Unit-II:
Security Market (8
Hours)
Financial
Market-Segments-Types-Participants-Regulatory Environment-Primary
Market-Role-Methods and Steps in Floating New Issues-Book Building-STOCK
EXCHANGES-Functions- Organization of SE-Listing of Securities- Regulation;
trading on RSEBL
Unit-
III: Risk (6
Hours)
Meaning of Risk-Elements of
Risk-Systematic and Unsystematic Risk- Measurement of Risk-Measurement of
systematic Risk.
Unit-
IV: Fundamental analysis (8
Hours)
Meaning- EIC Frame Work-Economic
Analysis-Economic Forecasting-Techniques-Anticipatory Surveys-Barometric or
Indicator Approach-Econometric Model Building (basic
concepts only) - Opportunistic Model Building (basic concepts only).
Unit-
V: Industry Analysis (6
Hours)
CONCEPT OF INDUSTRY-industry
Life Cycle-Industry Features. COMPANY ANALYSIS- Financial Statements
analysis-Other Variables.
Unit-
VI: Technical Analysis (8
Hours)
Meaning-DOW Theory- Principles of
Technical Analysis-Mathematical Indicators- (RSI,
MACD, MFI, etc), Market
Indicators-Technical Analysis Vs Fundamental Analysis.
Unit-
VII: Efficient Market Theory (6
Hours)
Random Walk Theory- Efficient Market
Hypothesis-Forms of Market Efficiency-Weak Form, Semi Strong Form and Strong
Form Efficiency-Competitive Market Hypothesis.
Teaching strategies
·
Lectures
·
Case
studies
·
Tutorials
·
Presentations
and Projects.
Assessment
·
Two
Case
Studies 20%
·
Mid
– Semester Exam 30%
·
End
– Semester Exam 50%
Total 100%
Essential
Texts
1.
Fisher, DE & Jordan, RJ, Security Analysis and Portfolio Management,
2.
Chandra, P, Investment management
References
1.
Bhalla, VK, Investment Management
2.
Kevin S, Security Analysis and Portfolio Management