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MBA-Finance
SECOND YEAR – FOURTH SEMESTER
PAPER - XVI
SECURITY ANALYSIS & PORTFOLIO MANAGEMENT
COURSE CODE: 37
PAPER CODE:H4010
UNIT - I
Investments - Investment Vs. Speculation -
Investment Process - Investment categories -
Risk and return - Factors Influencing Risk -
Measuring Risk and Return, Valuation of Equity:
Dividend Models, Price/Earnings Approach
UNIT - II
Equity stock Analysis: Economic analysis: Key
Macroeconomic Factors. Industry analysis:
Industry Life Cycle Analysis. Analysing the
Structure and Characteristics of an Industry -
Profit Potential of Industries. Company
Analysis: Analysing the Financial Statements,
The Chemistry of Earnings, Forecasting via the
Earnings Model, Market Share/Profit Margin
Approach, Independent Forecast of Revenue and
Expenses. Bond analysis - Returns and Risk -
Valuation of Bonds - Bond Management Strategies:
Duration.
UNIT – III
Options: Types - Determinants of Option value -
Option Position and Strategies -Option pricing.
Futures: Stock Index futures - Portfolio
strategies using futures -Futures on fixed
income securities - Futures on long term
Securities.
UNIT – IV
Technical Analysis: Market Indictors,
Forecasting Individual Stock Performance.
Efficient Market Theory - Random Wall - The
Efficient Market Hypothesis. Portfolio Analysis:
Effects of combining securities - Markowitz's
Mean-Variance model. Portfolio selection: Risk
and investor Preferences - Constructing the
portfolio - Significance of beta in the
Portfolio.
UNIT – V
Capital market Theory: CAPM - Arbitrage Pricing
Theory. Management Portfolios
and performance evaluation: Sharpe Index.
Treynor Index, Jensen's Model.
REFERENCES
1. Donald E, Fischer and Ronald J.Jordan,
SECURITY ANALYSIS AND
PORTFOLIO MANAGEMENT. 6:h Ed., Prentice Hall of
India. 2000.
2. Prasanna Chandra, MANAGING INVESTMENTS, Tata
McGraw Hill.
3. R.J.Fuller and J.L. Farrel, MODERN
INVESTMENTS AND SECURITY
ANALYSIS, McGraw Hill.
4. Jack Clark Francis, MANAGEMENT OF
INVESTMENTS, McGraw Hill.
5. Stron Robert, PORTFOLIO MANAGEMENT HAND BOOK,
Jaico, Bombay.
PAPER - XVII
GLOBAL FINANCIAL MARKETS
COURSE CODE: 37
PAPER CODE:H4020
UNIT – I
International Economic Environment -
International Monetary System.
UNIT – II
Foreign Exchange Market - Exchange Rate
Determination.
UNIT – III
Law of One Price - Management of Foreign
Exchange Exposure
UNIT – IV
International Capital Budgeting International
Working Capital Management -Financial Dimensions
of International Trade
UNIT – V
Control and Tax aspects of Multinational
Companies - Financing a Multinational Company.
REFERENCES
1. MauricS" 'Dlevi,' INTERNATIONAL FINANCIAL
MANAGEMENT. McGraw-Hill.
2. C. Jeevanandham, EXCHANGE RATE
ARITHMETIC, Sultan Chand.
3. Apte.P.G., International Financial
Management, Tata Mc. Graw Hill, New Delhi.
4. Henning, C.N., W.Piggot and W.H.Scott,
International Financial Management, Mc.Graw
Hill, International Edition.
PAPER - XVIII
INTERNATIONAL BUSINESS FINANCE
COURSE CODE: 37
PAPER CODE:H4030
UNIT – I
International Monetary and Financial System:
Importance of international finance; Bretton
woods conference and afterwards, IMF and the
World Bank; European monetary system - meaning
and scope.
UNIT – II
Balance of Payment and International Linkages:
Balance of payments and its components;
International flow of goods, services and
capital; Copying with current account deficit.
UNIT – III
International Financial Markets and Instruments:
International capital and money markets; Money
and capital market instruments; Salient features
of different international markets; Arbitrage
opportunities; Integration of markets; Role of
financial intermediaries.
UNIT – IV
Foreign Exchange Markets: Determining exchange
rates; Fixed and flexible exchange rate system;
Exchange rate theories; Participants in the
foreign exchange markets; Foreign exchange
market - cash and spot markets; Exchange rate
quotes; LERMS; Factors affecting exchange rates
- spot rates, forward exchange rates, forward
exchange contracts; Foreign exchange and
currency futures; Exchange rate arrangement in
India; Exchange dealings and currency
possession; information and communication;
Foreign exchange trades.
UNIT – V
International Capital and Money Market
Instruments; GDRs, ADRs, IDRs, Euro bonds, Euro
loans, Repos, CPs, floating rate instruments,
loan syndication and Euro deposits.
REFERENCES:
1. Apte, P.G: International Financial
Management, Tata McGrawhill, New Delhi.
2. Buckley, Adrian; Multinational
Finance, Prentice Hall, New Defhi.
3. Eitman, D.K. and A.I Stenehilf:
Multinational Business Cash Finance, Addison
Wesley, New York.
4. Henning, C.N., W Piggot and W.H Scott:
international Financial Management, McGraw Hill,
international Edition.
5. Levi, Maurice D: International
Finance, McGraw-Hill, International Edition.
PAPER - XIX
SECURITY MARKET OPERATIONS
COURSE CODE: 37
PAPER CODE:H4040
UNIT – I
Security Markets - Legal Environment: SEBI Act,
1992, Securities Contract Regulation Act 1956,
Companies Act 1956 (various provisions relating
to securities), RBI rules and guidelines for
Fll's.
UNIT – II
Security Markets: Primary and secondary market;
Primary market - its role and functions; Methods
of selling securities in primary market; New
financial instruments; New Issues: SEBI
guidelines for public issues - pricing of issue,
promoters' contribution, appointment and role of
merchant bankers, underwriters, brokers,
registrars and managers, bankers etc;
Underwriting of issues; Allotment of shares;
Procedures for new issues; e-trading.
UNIT – III
Secondary Market: Role, importance, organization
of stock exchanges; Listing of securities in
stock exchanges; Trading mechanism - screen
based system; Insider trading; Take-overs;
Internet based trading.
UNIT – IV
Depository: Role and need; The Depositories Act,
1996; SEBI (Depositories and Participants
Regulation) 1996; SEBI (Custodian of Securities)
Regulation 1996; National Securities Depository
Ltd. (NSDL); Depository participant.
UNIT – V
Funds from International Markets: Fll's, Euro
issues, ADR's, GDR's and FDI; Guidelines for
raising funds from the international markets
through various instruments; Credit Rating:
Meaning and necessity; Credit rating agencies;
Methodology of credit rating; Share Price
Indices: Need and importance; Compiling of Index
numbers and interpretation.
REFERENCES:
1. Dalton, John M.: How the Stock Market
Works, Prentice Hall, New Delhi.
2. Gupta, L.C.: Stock Exchange Trading in
India; Society for Capital Market Research and
Development, Delhi.
3. Machi Raju, H.R: Merchant Banking;
Wiley Eastern Ltd.; New Delhi.
4. Machi Raju, H.R: Working of Stock
Exchanges in India; Wiley Eastern Ltd. New
Delhi.
5. Chanratre, KR, et al: Capital Issue,
SEBI & Listing; Bharat Publishing House, New
Delhi.
PAPER - XX
FINANCIAL DERIVATIVES
COURSE CODE: 37
PAPER CODE:H4050
UNIT - I
Introduction: Meaning and purpose of
derivatives; Forward contracts, future
contracts, options, swaps and other derivatives;
type of traders; Trading future contracts;
Specification of the future contracts; Operation
of margins; Settlement and regulations; Sources
of Financial Risk: Credit vs Market, default
risk, foreign exchange risk, interest rate risk,
purchasing power risk etc.; Systematic and
non-systematic risk.
UNIT – II
Options: Types of options; Option trading;
Margins; Valuation of options; Binomial Option
Pricing Model; Black-Scholes model for Call
Options; Valuation of put options; Index
options; Option markets-exchange traded options,
over-the-counter options, quotes, trading,
margins, clearing, regulation and taxation;
Warrants and convertibles.
UNIT – III
Futures: Hedgers and speculators; Future
contracts; Future markets - clearing house,
margins, trading, future positions and taxation;
Future prices and spot prices; Forward prices vs
future prices; Future vs options.
UNIT – IV
Managing Market Risk: Hedging schemes - delta
hedging, theta, gamma; Relationship in delta,
theta and gamma; Vega and rho; Portfolio
insurance.
UNIT – V
Derivatives Market in India: Present position in
India - regulation, working and trading
activity.
REFERENCES:
1. Chance, Don M: An Introduction to
Derivatives, Dryden Press, International
Edition.
2. Chew, Lilian: Managing Derivative Risk, John
Wiley, New Jersey.
3. Das, Satyajit: Swap & Derivative financing,
Probus.
4. Hull, J.: Options: Futures and other
Derivatives, Prentice Hall, New Delhi.
5. Kolb, Robert W: Understanding Futures
Markets, Prentice Hall Inc., New Delhi.
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