PES INSTITUTE OF TECHNOLOGY – BANGALORE SOUTH CAMPUS

Dept. of MBA

Lesson Plan

Semester – III

Subject Code : 16MBAFM303 Total no of Lectures: 56

Subject Title : INVESTMENT MANAGEMENT IA Marks: 20

Type : ELECTIVE Credits: 4

Faculty Name : Mr. Suresh A S Exam Hours: 03

No of Lecture Hours / Week: 03 Exam Marks: 80

Practical Component Hour : 02 Ratio of theory to problems: 50:50

Pre-Requisite: Mention the pre-requisite course code if required
Course Objectives:
1.  To develop a thorough understanding of the process of investments.
2.  To familiarize the students with the stock markets in India and abroad.
3.  To provide conceptual insights into the valuation of securities.
4.  To provide insight about the relationship of the risk and return and how risk should be measured to bring about a return according to the expectations of the investors.
5.  To familiarize the students with the fundamental and technical analysis of the diverse investment avenues
6.  To learn the Theories of Portfolio management and also the tools and techniques for efficient portfolio management.
Course Outcomes:
At the end of the course students will be able to:
1.  Understand the process of investments.
2.  Get an insight into functioning of stock markets in India and abroad.
3.  Have insight into the relationship of the risk and return.
4.  Have familiarity of the fundamental and technical analysis
5.  Learn the Theories of Portfolio management and also the tools and techniques for efficient portfolio management

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Session Plan

Module No / Session No. / Contents / Pedagogical Tools / Presentation/Practical Component / Assignments / additional work / Student
Learning
Evaluation Technique / Cumulative Coverage
I / 1 / Course Outline: Introduction to Investment:
Attributes, Economic vs. Financial Investment, Investment and speculation, Features of a good Investment, Investment Process.
Course Objective: to understand the concept of investment
Course Outcome: Students will get the basic idea about investment and difference between speculation and investment / Lecture / Refer the
Table 2 / Refer the
Table 3 / # Class Discussion
# Case Presentation / 18%
2 / Course Outline: Financial Instruments: Money Market Instruments
Course Objective: to understand the different sources of Money Market Instruments
Course Outcome: students will know the different sources of Money Market Instruments / Lecture / Refer the
Table 2 / Refer the
Table 3 / # Class Discussion
# Case Presentation
3 / Course Outline: Capital Market:
Capital Market Instruments
Course Objective: to evaluate the manner of investment in them by the investors
Course Outcome: students will know the various Capital Market Instruments / Lecture / Refer the
Table 2 / Refer the
Table 3 / # Class Discussion
# Case Presentation
4 - 5 / Course Outline: Derivatives:
Mutual Fund types, Performance of Mutual Funds - NAV.
Course Objective: Concept of Derivatives and types of derivatives
Course Outcome: students will be able to identify various derivatives instruments / Lecture
Case Discussion / Refer the
Table 2 / Refer the
Table 3 / # Class Discussion
# Case Presentation
6 / Course Outline: Derivatives:
Mutual Fund types, Performance of Mutual Funds - NAV.
Course Objective: Concept of Derivatives and types of derivatives
Course Outcome: students will be able to identify various derivatives instruments / Lecture
Case Discussion / Refer the
Table 2 / Refer the
Table 3 / # Class Discussion
# Case Presentation
II / 7 / Course Outline: Securities Market:
Primary Market: factors to be considered to enter the primary market, modes of raising funds
Course Objective: introduction to securities market – primary market.
Course Outcome: Student’s will understand various primary market instruments. / Lecture
Case Discussion / Refer the
Table 2 / Refer the
Table 3 / # Class Discussion
# Test I
8 - 9 / Course Outline: Secondary Market: Major players in the secondary market
Brokers, depository clearing house etc.
Course Objective: to understand the secondary market
Course Outcome: students will know the secondary market instruments and players. / Student Presentation / Participation / Practical Component / Refer the
Table 2 / Refer the
Table 2
Module No / Session No. / Pedagogical Tools / Presentation/Practical Component / Assignments / additional work / Student
Learning
Evaluation Technique / Cumulative Coverage
10 / Course Outline: Functioning of Stock Exchanges: Transaction system, settlement and clearing
Course Objective: To understand working of stock exchange
Course Outcome: students will understand the Transaction system, settlement and clearing / Lecture
Video / Refer the
Table 2 / Refer the
Table 3 / # Class Discussion
# Test I
# Case Presentation / 36%
11 / Course Outline: Leading Stock Exchanges in India
Course Objective: A brief detail about NSE, BSE, CNXNIFTY, SENSEX etc.
Course Outcome: students will understand the working of stock exchanges. / Lecture
Case Discussion / Refer the
Table 2 / Refer the
Table 3 / # Class Discussion
# Test I
# Case Presentation
12 / Course Outline: Stock Market Indicators: Types of stock market Indices, Indices of Indian Stock Exchanges
Course Objective: to understand the concept indicators
Course Outcome: students will be able to identify the various indicators in stock market. / Lecture
Case Discussion / Refer the
Table 2 / Refer the
Table 3 / # Class Discussion
# Test I
# Case Presentation
III / 13 / Course Outline: Risk and Return Concepts:
Course Objective: Understanding the risk profile of investors.
Course Outcome: students will Understanding the concepts of risk and return. / Lecture
Case Discussion / Refer the
Table 2 / Refer the
Table 3 / # Class Discussion
# Test I
# Case Presentation
14 – 15 / Course Outline: Types of Risk- Systematic risk, Unsystematic risk
Course Objective: to understand Types of Risk
Course Outcome: students will know - Systematic risk, Unsystematic risk / Lecture
Case Discussion / Refer the
Table 2 / Refer the
Table 3 / # Class Discussion
# Case Presentation
16- 17 / Course Outline: Calculation of Risk and Return
Course Objective: to use Various statistical methods for evaluating risk
Course Outcome: students will solve problems on risk and return. / Lecture
Case Discussion
Video
Solving problem / Refer the
Table 2 / Refer the
Table 3 / # Class Discussion
# Case Presentation
Module No / Session No. / Contents / Pedagogical Tools / Presentation/Practical Component / Assignments / additional work / Student
Learning
Evaluation Technique / Cumulative Coverage
18 - 19 / Course Outline: Calculation of Risk and Return for 1 and 2 securities
Course Objective: to use Various statistical methods for calculating risk
Course Outcome: students will solve problems on risk and return. / Lecture
Cases Discussion
Video / Refer the
Table 2 / Refer the
Table 3 / # Class Discussion
# Test II
# Case Presentation / 50%
20 / Course Outline: Problems on risk and return – 3 securities
Course Objective: to solve problems
Course Outcome: students will understand risk and return process / Lecture
Cases Discussion
Video
Solving problem / Refer the
Table 2 / Refer the
Table 3 / # Class Discussion
# Test II
# Case Presentation
21 – 22 / Course Outline: Portfolio Combinations: Portfolio with more than 2 assets
Course Objective: The candidate should be able to compare two securities at a time.
Course Outcome: students will process of portfolio construction. / Lecture
Cases Discussion
Video
Solving problem / Refer the
Table 2 / Refer the
Table 3 / # Class Discussion
# Test II
# Case Presentation
IV / 23 / Course Outline: Valuation of securities: Bond-bond features, types of bonds, determinants of interest rates
Course Objective: to understand Bond-bond features, types of bonds.
Course Outcome: students will understand the determinants of interest rates. / Lecture
Cases Discussion
Video / Refer the
Table 2 / Refer the
Table 3 / # Class Discussion
# Test II
# Case Presentation
24-25 / Course Outline: Bond management strategies Bond management strategies, bond valuation, bond duration
Course Objective: to understand Bond management strategies.
Course Outcome: students will understand the Bond management strategies / Lecture
Cases Discussion
Video / Refer the
Table 2 / Refer the
Table 3 / # Class Discussion
# Test II
# Case Presentation
Module No / Session No. / Contents / Pedagogical Tools / Presentation/Practical Component / Assignments / additional work / Student
Learning
Evaluation Technique / Cumulative Coverage
26 / Course Outline: Problems on Bond valuation
Course Objective: to solve problems on Bond Valuation.
Course Outcome: students will understand the concept of Bond valuation. / Lecture
Cases Discussion
Video
Solving problem / Refer the
Table 2 / Refer the
Table 3 / # Class Discussion
# Test II
# Case Presentation / 64%
27 - 28 / Course Outline: Problems on Bond Duration
Course Objective: to solve problems on Bond Valuation and duration.
Course Outcome: students will understand the concept of Bond valuation. / Lecture
Cases Discussion
Solving problem / Refer the
Table 2 / Refer the
Table 3 / # Class Discussion
# Test II
# Case Presentation
29 / Course Outline: Bond Theorems
Course Objective: to evaluate bond theorems
Course Outcome: students will understand theorems of bonds / Lecture
Cases Discussion / Refer the
Table 2 / Refer the
Table 3 / # Class Discussion
# Test II
# Case Presentation
30 / Course Outline: Preference Shares:
Concept, features, yields
Course Objective: to understand valuation of preference shares
Course Outcome: students will understand how to value preference shares / Lecture
Cases Discussion
Solving problem / Refer the
Table 2 / Refer the
Table 3 / # Class Discussion
# Test II
# Case Presentation
31 / Course Outline: Equity Shares:
Concept, Valuation, Dividend Valuation model
Course Objective: to solve problems on dividend discount models
Course Outcome: students will understand the valuation of equity / Lecture
Cases Discussion
Solving problem / Refer the
Table 2 / Refer the
Table 3 / # Class Discussion
# Test II
# Case Presentation
32 / Course Outline: Equity Shares:
Concept, Valuation, Dividend Valuation model
Course Objective: to solve problems on dividend discount models
Course Outcome: students will understand the valuation of equity / Lecture
Cases Discussion
Solving problem / Refer the
Table 2 / Refer the
Table 3 / # Class Discussion
# Test II
# Case Presentation
33 / Course Outline: Equity Shares:
Concept, Valuation, Dividend Valuation model
Course Objective: to solve problems on dividend discount models
Course Outcome: students will understand the valuation of equity / Lecture
Cases Discussion
Solving problem / Refer the
Table 2 / Refer the
Table 3 / # Class Discussion
# Test II
# Case Presentation
Module No / Session No. / Contents / Pedagogical Tools / Presentation/Practical Component / Assignments / additional work / Student
Learning
Evaluation Technique / Cumulative Coverage
V / 34 - 35 / Course Outline: Macro-Economic and Industry Analysis:
Fundamental analysis - EIC
Frame Work, Global Economy, Domestic Economy, and Business Cycles.
Course Objective: to understand the meaning and definition Fundamental analysis
Course Outcome: students will understand the Fundamental analysis / Lecture
Cases Discussion
Video / Refer the
Table 2 / Refer the
Table 3 / # Class Discussion
# Test III
# Case Presentation / 78%
36 - 37 / Course Outline: Industry Analysis:
Type and other characteristics of industry
Course Objective: to understand industry analysis
Course Outcome: students will understand industry analysis / Lecture
Cases Discussion
Video / Refer the
Table 2 / Refer the
Table 3 / # Class Discussion
# Test III
# Case Presentation
38 - 39 / Course Outline: Company Analysis.
Financial Statement Analysis, Ratio Analysis
Course Objective: To do analyses of various components of balance sheet and P/L a/c and Ratio Analysis.
Course Outcome: students will understand the various theories of capital structures Financial Statement Analysis, Ratio Analysis. / Lecture
Cases Discussion
Video / Refer the
Table 2 / Refer the
Table 3 / # Class Discussion
# Test III
# Case Presentation
40 / Course Outline Technical Analysis –
Theories- Dow Theory, Eliot wave theory.
Course Objective: to understand the benefits of Technical analysis
Course Outcome: students will understand the benefits Technical analysis / Lecture
Cases Discussion
Video
Solving problem / Refer the
Table 2 / Refer the
Table 3 / # Class Discussion
# Test III
# Case Presentation
41 - 42 / Course Outline: Charts-
Types, Trend and Trend Reversal Patterns.
Course Objective: to understand the Trends
Course Outcome: students will understand the Trends / Lecture
Cases Discussion
Video
Solving problem / Refer the
Table 2 / Refer the
Table 3 / # Class Discussion
# Test III
# Case Presentation
43 - 44 / Course Outline: Mathematical Indicators: Moving averages, ROC, RSI, and Market Indicators.
Course Objective: to solve problems on moving averages.
Course Outcome: students will understand mathematical indicators / Lecture
Cases Discussion
Video
Solving problem / Refer the
Table 2 / Refer the
Table 3 / # Class Discussion
# Test III
# Case Presentation
45 - 46 / Course Outline: Market Efficiency and Behavioural Finance:
Random walk and Efficient Market Hypothesis
Course Objective: to understand the Market efficiency theory.
Course Outcome: students will understand the Random walk theory. / Lecture
Cases Discussion
Video
Solving problem / Refer the
Table 2 / Refer the
Table 3 / # Class Discussion
# Test III
# Case Presentation
47 / Course Outline: Empirical test for Different forms of market efficiency:
Course Objective: to understand the different forms of market efficiency
Course Outcome: students will understand the market efficiency. / Lecture
Cases Discussion
Video
Solving problem / Refer the
Table 2 / Refer the
Table 3 / # Class Discussion
# Test III
# Case Presentation
48 / Course Outline: Behavioural
Finance – Interpretation, Biases and critiques.
Course Objective: to understand the concept of finance
Course Outcome: students will understand the Problems of behavioral finance / Lecture
Cases Discussion
Video / Refer the
Table 2 / Refer the
Table 3 / # Class Discussion
# Test III
# Case Presentation
Module No / Session No. / Contents / Pedagogical Tools / Presentation/Practical Component / Assignments / additional work / Student
Learning
Evaluation Technique / Cumulative Coverage
VI / 49 / Course Outline: Modern Portfolio Theory: Markowitz Model-Portfolio Selection, Opportunity set, Efficient Frontier
Course Objective: to understand the Modern portfolio theory.
Course Outcome: students will understand the Theories Markowitz. / Lecture
Cases Discussion
Video / Refer the
Table 2 / Refer the
Table 3 / # Class Discussion
# Test I
# Case Presentation / 88%
50 / Course Outline: Capital Asset Pricing Model: Basic Assumptions, CAPM Equation, Security Market Line,
Course Objective: to understand CAPM model
Course Outcome: students will understand the CAPM model & problems / Lecture
Cases Discussion
Video / Refer the
Table 2 / Refer the
Table 3 / # Class Discussion
# Test I
# Case Presentation
51 / Course Outline: Security Market Line & Capital Market Line
Extension of Capital Asset pricing Model-Capital market line ,SMLVS CML
Course Objective: to understand the SM & CML
Course Outcome: students will understand difference between SML & CML. / Lecture
Cases Discussion
Video / Refer the
Table 2 / Refer the
Table 3 / # Class Discussion
# Test I
# Case Presentation
52 / Course Outline: Arbitrage Pricing Theory:
Arbitrage, Equation, Assumption, Equilibrium, APT and CAPM
Course Objective: to understand the APT theory
Course Outcome: students will understand the arbitrage process / Lecture
Cases Discussion
Video / Refer the
Table 2 / Refer the
Table 3 / # Class Discussion
# Test III
# Case Presentation / 100%
53 / Course Outline: Portfolio Management: Diversification:
Investment objectives, Risk Assessment
Course Objective: to understand the concept of portfolio management
Course Outcome: students will understand of portfolio management / Lecture
Cases Discussion
Video / Refer the
Table 2 / Refer the
Table 3 / # Class Discussion
# Test III
# Case Presentation
54 / Course Outline: Selection of asset mix: Risk, Return and benefits from diversification.
Course Objective: to understand the concept of portfolio management
Course Outcome: students will understand of portfolio management / Lecture
Cases Discussion
Video / Refer the
Table 2 / Refer the
Table 3 / # Class Discussion
# Test III
# Case Presentation
55 / Course Outline: Portfolio Management Strategies: Active and Passive Portfolio Management strategy.
Course Objective: to understand the concept of portfolio management strategies
Course Outcome: students will understand of portfolio management strategies / Lecture
Cases Discussion
Video / Refer the
Table 2 / Refer the
Table 3 / # Class Discussion
# Test III
# Case Presentation
56 / Course Outline: Portfolio Revision:
Portfolio Revision Strategies – Objectives, Performance Plans
Course Objective: to understand the concept of portfolio revision
Course Outcome: students will understand of portfolio revision. / Lecture
Cases Discussion
Video / Refer the
Table 2 / Refer the
Table 3 / # Class Discussion
# Test III
# Case Presentation
Revision / Lecture
Cases Discussion
Video / Refer the
Table 2 / Refer the
Table 3 / # Class Discussion
# Test III
# Case Presentation
Syllabus Review / A complete revision through the presentation by the students based on the presentation topics

Table – 2