SCDL Security Analysis and Portfolio Management

SL No.	Security Analysis and Portfolio Management	Pg No.
	unit 1.Basic Concepots
1	present value	2
2	future value	2
3	future value of a single cash flow	3
4	present value of a single cash flow	4
5	short compounding periods	6
6	present value of an uneven series of cash flows	7
7	present value of an annuity	8
8	future value of an annuity	10
9	measures of central tendency	11
10	mode	11
11	median	11
12	mean	12
13	arithmetic mean	12
14	geometric mean	12
15	earnings per share	12
16	dispersion	14
17	variance	15
18	standard deviation	15
	unit 2:-Investment
1	economic development	23
2	financial system	23
3	investment versus speculation and gambling	23
4	investment versus speculation	24
5	investment versus gambling	24
6	nature of risk	24
7	nature of risk	24
8	return expectation	24
9	decision	24
10	nature of risk	24
11	chances of risk	24
12	decision	24
13	investment alternatives/avenues	24
14	real assets	25
15	financial asset	25
16	nonmarketable financial asset	26
17	bank deposit	26
18	post office -time deposit	26
19	kisan vikas patra	26
20	national savings certificate	26
21	company deposit	26
22	employees provident fund	26
23	public provident fund	27
24	marketable financial assets	27
25	money market instrument	27
26	treasury bills	27
27	certificate of deposit	27
28	commercial paper	28
29	repos	28
30	bonds or fixed income securities	28
31	government securities	28
32	Government of India bonds	29
33	Private sector debentures	29
34	Private sector Bonds-PSC Bonds	30
35	preference shares	30
36	equity shares	31
37	authorized capital	31
38	issued capital	31
39	paid-up capital	31
40	par value	31
41	issue price	31
42	share premium	31
43	book value	31
44	market value	31
45	mutual funds	32
46	word game	32
	unit 3:-introduction to security Analysis
1	securities market	41
2	debt market	41
3	derivatives market	41
4	security analysis	42
5	intrinsic value	42
6	fundamental analysis	43
7	technical analysis	43
8	economy analysis	43
9	industry analysis	43
10	company analysis	43
	unit 4:- Risk and Return concepts
1	measurement of return	52
2	return during a period	52
3	return on an equity	53
4	rate of return	53
5	risk	54
6	types of risk	54
7	systematic risk	55
8	market risk	55
9	purchasing power risk	55
10	interest rate risk	55
11	unsystematic risk	56
12	business risk	56
13	financial risk	56
14	default risk	56
15	liquidity risk	57
16	measurement of risk	58
17	risk and return relationship	59
18	portfolio risk	60
19	portfolio return	60
20	portfolio variance	61
21	covariance	61
22	capital asset pricing model - CAPM	62
23	risk free return	63
24	market risk premium	63
25	beta of the security	63
26	beta of an asset	64
27	securities market line	65
28	SML	65
29	expected return	65
30	risk reduction through diversification	67
31	total risk	69
32	dividend	70
33	price appreciation	70
34	inflation	70
35	OTC stock	70
36	risk-less asset	70
37	treasury bill	70
	unit 5:Securities market indicators
1	securities market	74
2	classification of securities market	74
3	structure of securities market	74
4	debt market	75
5	government securities market	75
6	corporate debt market	75
7	money market	75
8	equity market	76
9	primary equity market	76
10	public issue	76
11	rights issue	77
12	private placement	77
13	preferential allotment	77
14	secondary equity market stock exchange	77
15	Bombay stock Exchange	78
16	national stock exchange	78
17	derivatives market	79
18	options market	80
19	futures market	80
20	stock market indices	82
21	bomb stock market indices	82
22	S and P CNX Nifty	83
23	market capitalization	83
24	construction of stock market indices	83
25	value of the indices on the requires date	84
26	Wholesale Debt market-WDM	87
27	over the counter-OTC	87
	unit 6:- Fundamental analysis
1	economy analysis	92
2	industry analysis	92
3	company analysis	92
4	approaches to industry analysis	94
5	economy analysis	94
6	GDP growth rate	94
7	behavior of monsoon and performance of agriculture	95
8	trends in public investment and savings	95
9	monetary and fiscal policy	95
10	economic and political stability	95
11	inflation	95
12	infrastructure facilities and arrangements	95
13	industry analysis	96
14	industry life cycle analysis	96
15	analysis of the structure and characteristics of industry	97
16	product line	97
17	raw	97
18	nature of demand	97
19	permanence	98
20	labour conditions	98
21	past sales and earnings performance	98
22	attitude of government towards industry	98
23	analysis of competitive conditions and influence on industry attractiveness: porters model	99
24	industry competitors	99
25	potential entrants	99
26	substitutes	99
27	bargaining power of the buyers	99
28	bargaining power of the suppliers	100
29	company analysis	101
30	marketing policies	101
31	accounting policies	101
32	profitability	101
33	dividend policy	101
34	capital structure	101
35	management	102
36	financial statement analysis	102
37	tools of financial statement analysis	102
38	ratio analysis	102
39	liquidity ratio	102
40	leverage ratio	103
41	turnover ratio	103
42	profitability ratio	103
43	valuation ratio	104
44	liquidity ratio	104
45	current ratio	104
46	liquid ratio	104
47	cash ratio	104
48	leverage ratio	105
49	debt equity ratio	105
50	debt asset ratio	105
51	interest coverage ratio	105
52	dividend coverage ratio	105
53	debt service coverage ratio	105
54	turn over ratio	105
55	inventory turn over ratio	105
56	debtors turnover ratio	106
57	average collection period	106
58	fixed asset turn over ratio	106
59	total asset turn over ratio	106
60	profitability ratio	106
61	gross profit ratio	106
62	net profit ratio	106
63	return on asset ratio	106
64	return on capital employed ratio	106
65	return on equity ratio	107
66	valuation ratio	107
67	price earning ratio	107
68	price earnings per share-EPS	107
69	dividend per share	107
70	dividend yield	107
71	earnings yield	107
72	dividend payout ratio	107
73	book value per share	107
74	trend analysis	107
75	index analysis	108
76	common size analysis	108
	unit 7:- Technical analysis
1	classical and modern technical analysis	117
2	dows theory	118
3	three important trends	119
4	primary trend	119
5	intermediate trend	120
6	short term trend	120
7	charting techniques	120
8	persistence of trends	120
9	relationship between volume and trend	120
10	support and resistance levels	121
11	bar and line chart	121
12	point and figure chart	122
13	moving average analysis	123
14	relative strength analysis	125
15	head and shoulders formation	126
16	momentum indicators	127
17	rate of change-ROC	127
18	moving average convergence divergence-MACD	127
19	oscillators	128
20	relative strength index	129
21	volume	129
22	breadth indicators	131
23	Elliot wave theory	131
24	bull market	134
25	bear market	134
	unit 8:- Efficient Market Theory
1	Efficient market	138
2	Efficient market hypothesis or random walk hypothesis	138
3	forms of efficient market hypothesis	140
4	weak form of efficiency	140
5	semi-strong form of efficiency	140
6	strong form of efficiency	140
7	tests of efficient market hypothesis	141
8	serial correlation tests	141
9	run tests	141
10	filter tests event study	142
11	portfolio study	144
12	price overreactions	145
13	calender anomalies	145
14	crash of 1987	145
15	misconceptions about efficeint market hpothesis	146
16	misconception	146
	unit 9:-Bond Valuation
1	Collateral	154
2	call provision	154
3	sinking fund provision	154
4	protective covenants	154
5	yields to maturity	155
6	risks in bonds	157
7	interest rate risks	158
8	default risks	158
9	call risk	158
10	liquidity risk	158
11	reinvestment risk	158
12	foreign exchange risk	158
13	rating of bonds	159
14	moody's	159
15	standard and Poor's	159
16	Australian rating	159
17	strategies of bond management	160
18	active bond management strategies	160
19	sector and asset substitution	160
20	maturity adjustment	160
21	quality diversification	160
22	coupon adjustment	160
23	passive management strategies	161
24	buy and hold strategy	161
25	bond ladder strategy	161
	unit 10:-Portfolio Management
1	phases of portfolio management	168
2	process of portfolio management	168
3	specification of investment objectives and constraints	170
4	liquidity	170
5	time horizon	171
6	tax consideration	171
7	risk	171
8	choice of asset mix	172
9	conventions wisdom on asset mix	173
10	Paul Samuelsson on asset mix	173
11	Benjamin graham on asset mix	173
12	John Bogle on asset mix	174
13	case	174
14	formulation of portfolio strategy	175
15	market timing	175
16	sector rotation	175
17	security selection	175
18	use of a specialized concept	175
19	selection of securities	177
20	portfolio execution	177
21	portfolio revision	177
22	portfolio rebalancing	177
23	portfolio upgrading	178
24	portfolio evaluation	178
25	trenor's measure	178
26	sharpe's measure	178
27	jensen's measure	179
28	coupon rate	181
	unit 11:-Portfolio theory
1	concept of portfolio theory	186
2	traditional portfolio theory	186
3	modern portfolio theory	188
4	Markowitz model	188
5	capital asset pricing model	190
6	mean return of the portfolio	190
7	capital asset pricing model	191
8	market risk	193
9	excess return	193
10	excess risk on portfolio	193
11	efficient frontier	194
12	optimal portfolio	194
13	beta	198
14	standard deviation	198
15	variance	198
	unit 12:-Derivatives : futures and options
1	derivative	204
2	future contract	206
3	commodity future	206
4	financial future	206
5	index future	206
6	future on individual securities	206
7	daily mark-to-market	207
8	final mark-to-market	207
9	options	208
10	call option buyer	208
11	call option seller	208
12	put option buyer	208
13	put option seller	208
14	exercise price	210
15	expiration date	210
	unit 13:-mutual fund and their schemes
1	history of mutual fund	216
2	concept of mutual fund	216
3	types of mutual fund schemes	217
4	on the basis of maturity period	217
5	open-ended scheme	218
6	net asset	218
7	closed-ended fund scheme	218
8	on the basis of investment objective	219
9	growth/equity oriented scheme	219
10	income/debt oriented scheme	219
11	balanced fund	220
12	other scheme	220
13	money market or liquid fund	220
14	gilt fund	221
15	index fund	221
16	sector fund	221
17	tax saving fund	221
18	advantages and disadvantages of mutual fund	222
19	access to professional; money mangers	222
20	diversification	222
21	transparence	222
22	small investment	222
23	tax advantages	222
24	bear expenses to run mutual fund	223
25	you cannot manage our portfolio on own	223
26	NAV	225
27	capital appreciation	225
28	capitalisation	225