lesson plan mb 13fm03 banking services and operations · pdf filemb 13fm03 banking services...

LESSON PLAN

COURSE RATIONALE: To enable students to understand the latest practices and procedures in the banking sector so that they can enhance their career options in the banking industry. COURSE OBJECTIVE: On completion of the course, the learner should be able to Evaluate various functions/ operational aspects associated with banks. Develops an ability to comprehend the increasing global demand to develop and sustain responsible professionalism in global

banking. Assess the various banking products/ services.

TEACHING METHODLOGY: Class room discussions, Guest lectures, Case analysis, Mini projects, Assignments.

UNIT/ SESSION/ HOURS

TOPICS STUDENT PREPARATION (INPUT)

PROCEDURE (PROCESS)

LEARNING (OUTPUT)

ASSESSMENT

I/1/2

I. Preparatory Sessions

R1: Pg 8-17

Introduction to course / PPT

Application of Concepts in Unit No 1:

1.Class Participation 2. Time frame game on

MB 13FM03 BANKING SERVICES AND OPERATIONS L T P C 2 2 0 3

1/2/2 1/3/2 1/4/2

II. Banking structure – types of Banking

III. Banks as a financial Intermediary – role and functions

IV. Constituent of payment system

R1: Pg 9-14 R1: Pg 114,115 R1: Pg 484,485

HSBC Bank Case illustration on kinds of banking Classroom discussion/PPT Practical illustrations – modes of payment.

Banking structure, financial intermediary, payment system. Skills: Conceptual skills in Basics of banking. Analytical skills in financial intermediary and payment system.

banking history 3. Surprise test.

2/5/1 2/5/1 2/6/1 2/6/1 2/7/1 2/7/1 2/8/1 2/8/1 2/9/2

I. Wholesale and retail banking

II. Private sector bank guidelines

III. Products and services offered by a bank

IV. Bank customer relationships.

V. Negotiable instruments.

VI. Statutory protection to paying and collecting banker.

VII. Banker’s lien. VIII. Right to

appropriation. IX. Case Discussions

R1: Pg 437 – 441 R1: Pg 10 R1: Pg 435 – 437 R1: Pg 93, 445 R1: Pg 105, 443 R1: Pg 443,444 R1: Pg 194 R1: Pg 324 – 326

Classroom/PPT discussions Classroom/ PPT discussions. ING Vysya bank Case Analysis. Role plays on bank cust relationships. Classroom sessions Classroom sessions Case Analysis Numerical solving

Application of Concepts in Unit No 2: Wholesale, retail banking, bank customer relationships, negotiable instruments, statutory protection to bankers. Banker’s lien. Skills: Conceptual skills in wholesale and retail banking, thinking skills in banker’s lien and right to appropriation, people skills in bank customer relationships,

1. Objective type questions. 2. Role plays on bank customer relationships. 3. Quiz 4. Surprise test.

3/10/1 3/10/1 3/11/1 3/11/1 3/12/1 3/12/1 3/13/1 3/13/1 3/14/1 3/14/1 3/15/2

I. Types of customers.

II. KYC and AML

III. Customer relationship management.

IV. Portfolio and wealth management.

V. Non fund based facilities.

VI. Core banking and E-banking.

VII. Electronic fund transfer.

VIII. ATM – types of charges levied.

IX. Code of bank’s commitment to customers.

X. Impact of technology in banking sector.

XI. Case Study On HSBC Bank – Retail and E-banking

R1: Pg 443 – 446 R1: Pg 107-110 R1: Pg 441 – 443 R1: Pg 295, 296, 460 R1: Pg 471 – 475 R1: Pg 437 – 441, 480 – 484 R1: Pg 488, 489 R1: Pg 480 – 484 R1: Pg 22 R1: Pg 479, 480 R1: Pg 455 – 461

Classroom Discussion/ PPT Illustration with bank forms and hands on experience to fill them. Classroom Discussion/ PPT HDFC Bank case Analysis. Classroom Discussion/PPT Illustration with bank forms and hands on experience to fill them. Charges list of a private bank illustrated. Classroom Discussion/PPT Scope International Case Analysis.

Application of Concepts in Unit No 3: KYC, AML, CRM, Core and E-banking, BCSBI, Portfolio and wealth management, ATM charges. Skills: Conceptual skills in KYC, AML, BCSBI Decision making skills in portfolio and wealth management. Action planning skills in ATM charges. Application skills in core and E-banking.

1. Case snippets on AML and KYC as a group activity. 2. Role plays on core banking and E-banking. 3. Surprise Test 4. Quiz

Decentralized cycle test covering first 3 units. Guest lecture on core banking systems used in private a bank preferably with hands on ex[erience. 4/16/2 4/17/1 4/17/1 4/18/1 4/18/1 4/19/1 4/19/2 4/20/2 4/21/2 4/22/1 4/23/1

I. Bank balance sheet structure – profitability of banks.

II. Record keeping.

III. 5S concept. IV. Principles of

lending.

V. Credit appraisal. VI. Revenue

recognition and realization.

VII. Money market operations.

VIII. Credit risk management.

IX. Prudential norms, asset classification.

X. NPA – provisioning.

XI. Reforms recently in the banking sector.

R1: Pg 52 – 56 R1: Pg 57 – 59 Material R1: Pg 115, 116, 122-124 R1: Pg 307 – 311 R1: Pg 309,310 R1: Pg 284 R1: Pg 192 – 194 R1: Pg 210,211 R1: Pg 211 – 214 R1: Pg 215 - 217

Classroom Discussion/ PPT Classroom Discussion/ PPT Case analysis. Illustrations using numerical enabling the students towards a better understanding. Classroom Discussion/ PPT Illustrations using numerical enabling the students towards a better understanding. Classroom Discussion/ PPT Classroom Discussion/ PPT

Application of Concepts in Unit No 4: Bank balance sheet, 5S, lending, credit appraisal, money market operations, credit risk management, prudential norms, and asset classification. Skills: Conceptual skills in balance sheet, 5S, analytical skills in credit appraisal and revenue recognition. Decision making skills in credit risk management and NPA provisioning.

1. Make students solve mathematical problems pertaining to credit risk management and NPA provisioning under the faculty’s guidance for a better understanding. 2. Quiz 3. MCQ, surprise test.

5/24/1 5/24/1 5/25/1 5/25/1 5/26/1 5/26/1 5/27/1 5/27/2 5/28/1 5/29/2 5/30/2

I. Asset liability management.

II. Capital adequacy in banks.

III. BASEL I, II, III IV. CAMELS ratings

of banks. V. Banking

ombudsman. VI. SARFAESI Act.

VII. RBI Act.

VIII. Legal framework of CRR, SLR, PLR.

IX. Banking regulation act.

X. Service and operations provisions in banks.

XI. Case Discussion

R1: Pg 358, 407 – 411 R1: Pg 322 – 330 R1: Pg 213,214,312-314 R1: Pg 65.66 Material R1: Pg 20-24 R1: Pg 105,443 R1: Pg 20-24 R1: Pg 105, 443,444 R1: Pg 455 - 461

Classroom Discussion/ PPT Illustrations using numerical. Classroom Discussion/ PPT Classroom Discussion/ PPT Classroom Discussion/ PPT Classroom Discussion/ PPT Classroom Discussion/ PPT Case snippets and numerical solving. Classroom Discussion/ PPT Classroom Discussion/ PPT

Application of Concepts in Unit No 5: Asset liability Management, BASEL I,II,III, CAMELS rating, Banking ombudsman, SARFAESI Act, RBI Act, CRR, SLR, PLR. Skills: Analytical and decision making skills in asset liability management and capital adequacy, conceptual skills in statutory regulations and reforms, Analytical skills in CRR, SLR, PLR. People skills in service and operations provisions.

1. Multiple choice questions and Quiz on the various legal frameworks of bank rates and ratings. 2. Mathematical problem solving. 3. Surprise Test, MCQ

REFERENCES 1. Padmalatha Suresh & Justin Paul-Management of Banking and Financial Services –Pearson Education, 2nd edition, 2010 2. Clifford Gomez - Banking and Finance – Theory, Law & Practice –PHI Learning Pvt. Ltd, 3rd edition, 2012 3. D. Muraleedharan - Banking Theory and Practice –PHI Learning Pvt. Ltd, 3rd edition, 2011

4. Jyotsna Sethi & Nishwan Batia - Elements of Banking and Insurance – 4th edition, PHI Learning

Pvt. Ltd, 2011 Method of Internal Evaluation: Cycle Test (1) Decentralized 05 marks Cycle Test (2) Centralized 05 marks Mini project/Assignment 15 marks Model Examination 15 marks Surprise Test 05 marks Class Participation 05 marks ------------- 50 marks ---------------

LESSON PLAN

Objective: The course will enable the learner to understand the basic types of Financial Derivatives, their payoff functions and the economic role they play in managing risks. On completion of the course the learner may able to critically evaluate and analyze various pricing models which in turn will help them in choosing the right derivatives instrument for making their Investment.

Teaching Methodology: Class Room Discussions, Practical demonstration in the Computer Lab using the live Market data, Mini Projects and Assignments

MB 13FM05 FINANCIAL DERIVATIVES L T P C 2 2 0 3

Unit No: /

Session No: /

No of Hours

Topics Input/

Student Preparation

Process Output/ Learning Assessment

I/1/2

Preparatory Session R6:

PP No:1 -56

Introduction to the Course

/PPT

Application of Concepts in Unit No 1:

1)Time Value of Money

2)Continuous Compounding

3)Basic Understanding of Types of Financial Derivatives

4)Terms in Financial Derivatives like Clearing House,Settlement Process Etc

Skills :

1) Develop Conceptual Skills in FD

2)Analytical Skills

3)Application of Finance

Assessment for Unit No:1 1.Class Participation

2. Online Exercises using live Market data

3.Quiz

4.Surprise test

I/2/1 Introduction to Derivatives ,

Text Book:PP No:1-15

Classroom Discussion

/Demonstration Live Market in the Computer Lab

I/3/1 Necessity for Derivatives

R4:PP No:2.1-2.15 Classroom Discussion/PPT

I/4/2 Types of Derivatives R4:PP No:1.1-1.24 Classroom Discussion

/PPT

I/5/1 Valuation Basics- R1:PP no:28-36 Solving of Numericals Using Ms Excel

I/6/1 Discounting and Compounding,

R1:PP no:28-36 Solving of Numericals Using Ms Excel

I/7/1 Time Value of Money,


Functions in Ms Excel

I/8/1 Continuous Compounding


II/9/1 Forward contract and Futures Contract ,

TB:PP No:17-19 & R2:PP NO:415-423

(Incl Cases)


/PPT/Case Analysis

Application of Concepts in Unit No: 2

1)Pricing of Forwards ,Futures ,Options and swaps

2)Option Pricing Strategies like Butterfly ,Straddle ,Strangle etc

3) Commodity derivatives

4) Different types of Futures including Index futures etc

Skills :

1)Develop Conceptual Skills in Pricing

2)Analytical Skills

Assessment for Unit No:2

1.Class Participation


3.Mini Project

II/10/2 Forwards ,Futures, Pricing of Futures and Forwards -Basics

TB:PP No:17-19 & R2:PP NO:415-423

Solving of Numericals Using Ms Excel

II/11/2 Options Pricing Strategy

R2:PP No:458-481 Classroom Discussion

/PPT/ Solving of Numericals Using Ms Excel

II/12/1 Currency Futures and Interest Rate Futures-Index Futures-Introduction

R3:PP No:96-140 & PP No:307-321

(Incl Cases)


/PPT/Case Analysis

II/13/2 Commodity R5:PP No: Classroom Discussion

Derivatives 1-40 /PPT/Case Analysis 3)Ms Excel

4)Decision Making Skills

II/14/2 Currency Futures and Interest Rate Futures - Index Futures-Pricing and Valuation

R3:PP No:96-140 & PP No:307-321



III/15/1 Types of Options - Differentiate European and American options– Call option and put Option


/PPT/Case Analysis


1)Types Of Options

2)Option Pricing Models-Binomial and Black and Scholes

3)Volatility-Options Greeks

Skills :

1)Develop Conceptual Skills in Pricing of Options

2)Analytical Skills

3)Ms Excel





3.Assignment

III/16/3 Option pricing models - Binomial Model

R2:PP No:487-507 Solving of Numericals Using Ms Excel

III/17/2 Black and Scholes R2:PP No:487-507 Classroom Discussion


III/18/1 Volatility – Delta – Gama – Theta – Vega- Rho-Introduction

R5 :PP :12.1-12.21 Classroom Discussion


III/19/2 Volatility – Delta – Gama – Theta – Vega- Rho-Estimation and Valuation

R5 :PP :12.1-12.21 Classroom Discussion

/PPT

III/20/1 Value at Risk(VaR) Text Book: PP Classroom Discussion

No:498-511 /PPT/ Case Analysis

IV/21/1 Swaps-An Introduction

R4:PP No:14.1-14.32


/PPT/Case Analysis


1)Different Types of Swaps

2)Pricing of Swaps

Skills :

1)Develop Conceptual Skills in Pricing

2)Analytical Skills




2.Q & A

3.Surprise test

IV/22/2 Types of Swaps-Equity-Currency-Interest Rate

R4:PP No:14.1-14.32


IV/23/2 Structure of Swaps R4:PP No:14.1-14.32


/PPT/

IV/24/2 Pricing of Swaps R4:PP No:14.1-14.32



V/25/1 Exotic Derivatives- Weather Derivatives

R5:PP No:328-383 & Text Book-PP No: 771-800


/PPT

V/26/2 Credit Derivatives-Real Derivatives

R5:PP No:328-383 & Text Book-PP No: 771-800


/PPT


1)Different Types of Commodity Derivatives

2)Scenario Analysis

3)Simulation

Skills :

1)Develop Conceptual Skills in Commodity Derivatives

2)Analytical Skills




2.Q & A

3.Surprise test

V/27/2 Stages involved in the process of Financial Engineering


/PPT

V/28/2 Scenario Analysis Text Book PP No:923-943



V/29/2 Simulation Text Book PP No:923-943


V/30/1 Developments and trends in the area of derivatives trading


/PPT

*Faculty instructors are advised to supply handouts to the students for Numerical and Cases.

Also they are advised to circulate a lab manual for the Practical Sessions in the Computer Lab.

Note: 60% of weightage to Numericals and 40% to Theory

Class room discussion/ Numerical 25 Hours

Practical’s in the Computer Lab 25 Hours

(Using the Live Market Data)

--------------

50 hours

--------------

TEXT BOOKS:

Derivatives –Principles and Practice by Sundaram Das,TMH

REFERENCES

R1. Hull, John C, Options, Options, futures and other derivatives, Prentice Hall of India, 8th edition, 2011 R2. S.D.Bala and C.Pattabiram,First Lessons in Strategic Financial Management, Snow white Publications,First edition 2012 R3. SSS Kumar,Financial Derivatives,Prentice Hall of India (PHI)Revised Edition Jan 2012 R4. Prafulla Kumar Swain,Fundamentals of Financial Derivatives,Himalaya Publishing House,First Edition 2012 R5. Prabina Rajib,Commodity Derivatives and Risk Management,Prentice Hall of India (PHI) R6.Financial Management by N R Parasuraman

Method of Internal Evaluation:

Cycle Test (1) Decentralized 05 marks

Cycle Test (2) Ccntralised 05 marks

Mini project/Assignment 15 marks

Model Examination 15 marks

Surprise Test 05 marks

Class Participation 05 marks

------------------

50 marks

------------------

LESSON PLAN

LEARNING OBJECTIVES:

The main objective of this course is to provide a background of risk management in international business. It also offers the structure and scope of financial management in multinational context. The students will be able to assess a firm’s foreign exchange exposure and evaluate various hedging techniques that could be used to manage the exposure. In addition to this the students will be exposed to various aspects of decision – making relating to financial investments in a global perspective.

Session/ Unit/Hrs.

Topic Student Preparation Delivery Mode/ Class Room Process

Learning Assessment

S.1

Hrs.1

Introduction of the Syllabus And discussion on course planning

Syllabus & lesson Plan

Discussion Allotment of Mini Project Topics in Group & Individual asignments

Understanding the importance of course from the view of placements and methods of preparation for class

1. GD 2. Feedback

S.2-4 Hrs.3

Introduction of basic accounts and concepts of financial

-Basics of Accounts, -Decision making using financial statements, - Techniques of interpretation -risk factors present in

Case: Anupama Securities Smokey Valley Café

Application of accounting concepts and conventions in decision making. Understanding the role of strategic finance in designing the capital pattern

1. MCQ 2. Feedback

MB13FM07 GLOBAL FINANCE L T P C 2 2 0 3

management various investment proposals - capital structures and cost of each capital - Financial mgmt. functions and implications

Quiz and significance of the cost of capital and the working capital in achieving the profit maximization and wealth maximization

Unit I Hrs.6 S.5-10

1. International

Finance, 2. Foreign

Exchange Markets,

3. International Financial markets,

4. FDI & FII, 5. Monetary

Systems

-Monetary system (Indian & Global) - Various Global markets and its role in developing economy (equity, bonds, money markets) - foreign exchange (meaning & trading methods) -FDI and FII (meaning)

Case study: Asian Crisis GD Discussion

Nature, scope & significance of IFM, Trading Mechanism& participants in Forex market, appreciation, depreciation, revaluation, devaluation International equity, bond, and money markets trading mechanism and its features, Methods of FDI & FII participation, Bretton wood Agreement, gold standards, exchange rate regimes

1. MCQ 2. Feedback

Unit II Hrs.8

S.11-18

Exchange rate determination and theories of foreign exchange

-Inflation,types,current rates -implication of inflational variations on the development of the economy, -interest rates – meaning and types - purchasing power - US economy & Indian economy – an analysis

Exercise from R.1 Page No.100-114 & 273-292 Case:GE, Newspaper discussion Data from net to do foreign exchange calculation based on current inflation rates and interest rates to

Fators affecting exchange rate, PPP theory – IRP theory – IFE theory – arbitrage process, cross parity Determination of foreign exchange, foreign exchange quotations, calculation of

1.MCQ 2.feedback

- change over of Indian economy on U.K economy - Market – global platform – challenges – for financial products – investments – gold – business -trade

understand the dollar/rupee appreciation and depreciation.

bid/ask rate, spot and forward rates, cross rates and conversion of forward rates using premium & discounts, Bill exchange rate

Unit III Hrs.7

S.19-25

Exposure and Risk management- Derivatives as a hedging tool

--risk (definition and need to control risk) -what are risk exposures -visit a business (either small or medium) firm to identify the risk exposures and how they control and manage such exposures -How good they are in identifying such exposures, -visit stock market or talk to an stock agent and understand the derivative market basics and its practical usage & importance

1. Case2008-09 crisis 2.presentation 3.Debate on various global economic issues 4.Data analysis of the investment proposals both in foreign currency and Indian rupee

Meaning of risk and difference b/w risk & exposure, Different type of exposures: transaction exposure, translation exposure and operational exposure, Internal: netting, lagging, invoicing, leading, matching, choice of currency and external: derivatives- futures, currecy forwards, swaps, options hedging techniques

1.MCQ 2.feedback

Unit IV Hrs.2 S.26-27

Regulatory Framework for global finance

- IMF - WTO - World Bank

Presentation

IMF – role, regulation, surveillance, financial support World bank – role and

1.MCQ 2.Feedback

Short term financial management

- WCM of MNCs Seminar importance, Role of central bank Importance of WCM

Unit V Hrs.5

S.28-32

International capital budgeting

capital budgeting meaning and compuitation using diff. tools -various risk factors present in international investment proposals, -challenges and problems in global investment -meaning of speculation, hedging and arbitration, -the role of speculator, hedger and arbitrator as a investor -NPV, IRR, Pay back period meaning and formulas -prepare a specimen of a global proposal with web data and analyse and justify -preparing & revising for test

1.Data from website or investment appraisal of proposal 2.Case 3.Presentation

Various MNCs project appraisal, global investment appraisal using NPV, and pay back period.

1.Excercise 2.feedback

S.33-36 Hrs.4

Cycle test

Preparing and writing cycle test

Evaluation of test papers

Perfomance analysis and knowledge acquired in the subject

1.feedback on the test performance: the best work and the areas where they have to improve and the method in which they need to prepare for semester exam

S.37-42 Hrs.6

Project Presentation and Syllabus revision

PPTs on the mini project and preparation to face the questions related to the project work done in a team. Revision of syllabus session wise

1.presentation test 2..Discipline & dress code 3. Quality & Subject knowledge

Communication skill Confidence,Leadership Presentation skill, Overcome the stage fear. Technical knowledge by preparing on the application of concepts studied so far.

1.Viva Voce 2.Feedback

S43-45 Hrs.3

Revision for semester exam

Prepare unit wise before the class

Discussion & clarification of doubts

Better understanding of the concepts of international finance

1.model exam

Text Books

1. International Financial Management by V Sharan

Reference books

1. International Financial Management, Jeff Madura 2. International Finance, By Kevin S 3. Foreign Exchange Management by Jeevanandam 4. Multinational Finance By Maurice and Levi 5. International Financial Management by P.G. Apte

Internal Evaluation

1. Cycle Test = 10 marks 2. Model Exam = 15 marks 3. Surprise Test = 5 marks 4. Class Participation = 5 marks 5. Project = 15 marks

MINI PROJECT TOPICS

1. RISK AND RETURN OF ALTERNATIVE INVESTMENT OPPORTUNITIES AVAILABLE TO HIGH NET WORTH INDIVIDUALS

2. A STUDY ON FOREIGN EXCHANGE AND ITS RISK MANAGEMENT

3. ANALYSIS OF INVESTMENT OPTIONS

4. A STUDY ON SUBPRIME CRISIS AND ITS EFFECTS ON INDIA

5. THE MANAGEMENT OF FOREIGN EXCHANGE RISK

6. MARKET REGULATION A KEY FOR SUCCESSFUL GLOBALIZATION

7. CURRENCY RISK: ACCOUNTING VS ECONOMIC EXPOSURE

8. RISK MANAGEMENT: NEW APPROACHES; TREASURY CONTROL AND PERFORMANCE EVALUATION

9. INTERNATIONAL CAPITAL BUDGETING, PROJECT FINANCING AND ACQUISITION DECISIONS

10. INTEGRATED GLOBAL FINANCING DECISIONS

11. A STUDY ON COMMODITY FUTURES AS AN INVESTMENT AVENUE

12. A STUDY ON THE ROLE OF FINANCIAL FUTURES WITH REFERENCE TO NSE NIFTY

13. A STUDY ON FINANCIAL SICKNESS

14. A STUDY ON WORKING CAPITAL MANAGEMENT

15. A STUDY ON PAYBACK METHOD IN CAPITAL BUDGETING DECISION

16. HEDGING STRATEGIES IN FOREIGN EXCHANGE OPTIONS

17. A STUDY AND EVALUATION OF DERIVATIVES

18. AN ANALYSIS ON INVESTMENT PATTERN AND BEHAVIOR OF INVESTORS

19. A STUDY ON BUSINESS VALUATION AND ANALYSIS USING FINANCIAL STATEMENT

20. A STUDY ON INFLATION & ITS IMPACT ON THE DEVELOPMENT OF AN ECONOMY

21. A STUDY ON VARIOUS INVESTMENT ALTERNATIVES AVAILABLE TO THE GLOBAL INVESTORS

22. INTERNATIONAL EQUITY MARKET

23. INTERNATIONAL BOND MARKET

24. A STUDY ON THE ROLE OF CENTRAL BANK IN GLOBALIZATION

25. A STUDY ON UK ECONOMY Vs. INDIAN ECONOMY

26. A COMPARITIVE STUDY OF MARKET REGULATION OF INDIA & USA

27. FDI IN RETAIL SECTOR

28. FDI IN INSURANCE SECTOR

29. A STUDY ON FII REGULATIONS

30. REGULATORY BODIES ARE WATCH DOGS: AN ANALYSIS

LESSON PLAN

Objective:

To equip students with advanced tools and techniques for making profitable investment decisions. To acquaint them with various financial markets, instruments and systems for efficient portfolio construction and management.

Session/

unit

Topic

Student Preparation

Process, Methodology, Delivery mode.

Learning Outcome

Assessment

Session 1& 2.

Introduction to Finance -Objectives -Financial Functions -Capital Structure -Dividend -Working Capital Management. -Short term & long term funds.

Review on the syllabus of Financial Management.

Short Presentation.

Decision making regarding Investment/ Financing/ Dividend that contributes to Wealth maximization

Mini case study.

MB13FM01 SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT L T P C 2 2 0 3

Session 3&4 UNIT-I/ Session 5 to 8

Introduction to Securities -Shares -Equity & its types -Debentures & its types -Preference shares & its types. -Mutual Funds. Investment -Investment process -Difference Investment & Speculation. -Investment Objectives. Types of investment -Fixed Income securities -Variable Income Securities. Investment avenues -Shares / Bonds / Deposits / Mutual funds / Real assets / Real Estates etc., Components of financial

Refer Website www.linkmarketservices.com www.dspblackrock.com for glossary on financial instruments. Investment &savings, need for Investment, Investment prospect and availability in the market. Capital gains, Dividends, fixed rates and variable rates. Refer T1 Page.No.1 – 13. Data on current share prices, Deposit rates, Mutual funds performance, Real Estate performance etc.,

PPT

Discussion Case Study Debate

Analysing pros & cons of various securities to the Investors as well as to the firm that could help in Investment decision for an investor and Financing decision of a firm. Classifying Investors, understanding Investor requirement and planning Investment proposal. Calculating Income based on Fixed rate and Variable rates. Comparing the value of each avenue and matching them with different types of investors.

Short Answers Multiple Choice Questions Student Participation

Quiz

system & functions -SEBI & its Functions -Stock Exchanges & its Functions -Initial Public Offering. -Primary Market & Secondary Market. -Stock Market Indices. Trade off between Risk & Return. -Systematic Risk & Unsystematic Risk. -Calculation of Risk. -Actual Return & Expected Return. -Calculation of Return. - Risk Adjusted Returns & Value at Risk.

1)Refer Website: www.sebi.gov.in 2)knowledge and information on various stock exchanges in India and abroad regarding trading system , volume of trading, settlement system, platform used for trading, brokerage, types of shares, types of order, Index calculation etc., Variance, Standard Deviation, probability, Beta, Summation etc.,Refer Website: www.investopedia.com

Case Study “The JVG Scandal” www.icmrindia.org Student Faculty Interaction

Calculation of Stock market Index and exposure to global financial markets, regulating bodies etc., Analyzing risk qualitatively and quantitatively that helps in making right investment decisions.

Multiple Choice Questions.

Quiz

UNIT-2/ Session 9 to 15

Valuation of Equity Shares. -Single period holding -Multi period holding -Constant Growth Model - Single Growth Model -Multiple Growth Model Valuation of Preference Shares. -Valuation of Redeemable Preference Shares. (Issued & Redemption at par, premium and Discount) -Valuation of Irredeemable Preference Shares. (Issued at par, premium and discount). Valuation of Bonds -Bond Return -Current Yield -Yield to Maturity -Yield to Call -Bond Value Theorems.

Refer R1 Page.No.109-136 Refer R2 Page.No.153 – 171. Refer R1 Page.No.137 – 157.

Case Study.

Case Study

Case Study

Forecasting future price of the shares that leads to make buy or selling decision Forecasting future price of the shares that leads to make buy or selling decision Forecasting the rate of return to be earned on buying and holding a bond for a particular period.

Project Project Project


Fundamental Analysis -Economic Analysis -Industry Analysis -Company Analysis

1) Data like GDP, GNP,NNP, FOREX, Budget, Interest rate, Inflation Rate etc., 2) Ratio analysis for a Balance sheet of a firm tobe submitted. 3) A report on Industrial forecasting to be prepared.

Debate.

Selection of appropriate economy, Industry and company for Investment and proportioning the total funds to be invested.

Group Discussion

Technical Analysis -Dow Theory -Moving Average -EMA -Oscillators -MACD -ROC -RSI -Types of Charts & Patterns. -Efficient Market Hypothesis. -H-Model.

Refer Websites: www.moneycontrol.com www.valueresearchonline.com www.sebi.gov.in

Demonstration/ Guest Lecture.

Interpreting the various tools of technical analysis to buy, sell or hold the shares at the right time.

Mock Trading


Capital Asset Pricing Model -Capital Market Line -Security Market Line -Limitations of CAPM -Risk Measurement -Markowitz diversification Arbitrage Pricing Theory. -Asset Pricing -APT vs CAPM -Applications of APT -Multi-Index Model. -Identifying Model Factors.

Refer R1 Page.No.323-344 Refer R1 Page.No.451- 466 Refer Journal Article “Performance Measurement with the Arbitrage Pricing Theory: A new framework for analysis” – Journal of Financial Economics

Student Faculty Interaction

Discussion

Pricing of risky market securities, risk premium and types of diversification Predicting relationship between the returns of a portfolio and the returns of a single asset through a linear combination of many independent macro-economic variables.

Quiz Student applicability with current market trend.

Random Walk Hypothesis. -Security Valuation -weak form / semi-strong form / strong form -Test of Random Walk Theory. -Walter Model -Graham and Dodd Model -Dividend Model -Malkiel and Cragg Regression Model.

Refer R1 Page.No.284 - 297 Refer Journal Article “The Efficient Market Hypothesis and its Critics” – Journal of Economic Perspective.

Presentation

Determining security prices by independent market forces.

Group Discussion


Construction of Portfolio -Objectives of Portfolio. -Risk-Return Analysis -Efficient Portfolio -Portfolio Management Process. -Efficient Frontier. Evaluation of Portfolio -Sharpe’s Measure -Jenson’s Measure -Treynor’s Measure -Revision of Portfolio.

1) Diversification and types of Diversification. 2) Investment Objective and Importance of Diversification. 3) Time Value of Money. Refer R1 Page.No.391-412

Case Study “Dark Clouds on the Horizon” (R1.Pg.No.422) Case Study

Constructing efficient portfolios and importance of continuous monitoring & Review. Selection of efficient portfolio.

Stock Trading Stock Trading

Text Book:

1) Investment analysis and Portfolio Management – Prasanna Chandra – Mc Graw Hill

Reference Books:

1) Security Analysis and Portfolio Management – VA.Avadhani – Himalaya Publishing House 2) Security analysis and portfolio management – Punithavathy Pandian – Vikas publications. 3) Security analysis and portfolio management – Donaldi. Fisher. Ronald J. Jones – Pearson 4) Security analysis and portfolio management – S.Kevin – Prentice Hall of India. 5) Security analysis and portfolio management – Dhanesh Khatri – Macmillan. 6) Investment Analysis – Ranganatham M., Madhumathi R. – Pearson. 7) Investments – Bodie , Kane, Marcus, Mohanty – Mc. Graw Hill.

Internal Assessment:

Cycle Test – 10 marks

Surprise Test – 5 marks

Class Participation – 5 marks

Model Exam – 15 marks

Project – 15 marks

Total -- 50 marks

Project Topics:

1) Systematic Risk of selected Banking Scripts. 2) Optimization of Portfolio Risk. 3) ULIP as an Investment Avenue. 4) Performance Evaluation of public and private sector mutual funds.

5) Security analysis on selected Industries. 6) An Analysis of Equity share price Behaviour. 7) Im pact of macro-economic factors on share prices movement of the vital industrial sectors. 8) Investment pattern in Debt Scheme of Mutual Funds. 9) Fundamental analysis of Indian Telecom Companies. 10) A study on EVA of Indian companies and its impact on Investor decision making 11) Portfolio construction using Fundamental analysis. 12) A study on a Stock Broking unit.

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