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SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT - PHI - 344

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PORTFOLIO MANAGEMENT Achieving service excellence Exercise: The customer experience The customer interaction cycle Receiving Understanding Helping Sample worksheet — options and expectations Keeping Partner exercise — process mapping Handling challenging situations - • Managing for customer satisfaction The differences between a traditional manager and a customer-focused manager • —Customer-focused selling and marketing skills The three principles of customer-focused selling The customer's buying steps Customer-focused prospecting Making a good first impression on first time sales calls Progressing the call Customer-focused selling skills Handling objections, queries and concerns The objection handling process Exploring needs High-impact questions Listening Understanding the buying criteria and the customer's buying process ... Exploring and developing options Proposing and closing Connecting with customers in the digital age Interactive media marketing How are companies striving to win customers evil In Mir new Identifying the right data The ten keys to outstanding customer service . SECURITIES MARKET Financial Market Segments of Financial Market Types of Financial Market Participants in the Financial Market Regulatory Environment Primary Market/New Issues Market Methods of Floating New Issues . Principal Steps in Floating a Public Issue Book Building Role of Primary Market __ Regulation of Primary Market • STOCK EXCHANGES What is a Stock exchange Functions of Stock Exchanges Stock Market in India Over the Counter Exchange of India (OTCEI) National Stock Exchange of India (NSE) - • Inter-connected Stock Exchange of India (ISE) MCX-SX: The Newest Stock Exchange of the Country SX40—The Market Index of MCX-SX _ Organisation, Membership and Management of Stock Exchanges Listing of Securities : • Permitted Securities Regulation of Stock Exchanges TRADING SYSTEM IN STOCK EXCHANGES Trading System Types of Orders Settlement .■ Speculation Types of Speculators Margin Trading Depositories • Stock Market Quotations and Indices • •. RISK Meaning of Risk Elements of Risk Systematic Risk Unsystematic Risk Measurement of Risk Measurement of Systematic Risk. Value at Risk (VaR) Analysis Origin Concept Methods Evaluation f Solved Examples • FUNDAMENTAL ANALYSIS: ECONOMY ANALYSIS Meaning of Fundamental Analysis Economy-Industry-Company Analysis Framework Economy Analysis Economic Forecasting Forecasting Techniques Anticipatory Surveys . Barometric or Indicator Approach Econometric Model Building Opportunistic Model Building $ INDUSTRY AND COMPANY ANALYSIS Industry Analysis Concept of Industry Industry Life Cycle Industry Characteristics Company Analysis Financial Statements _ Analysis of Financial Statements Other Variables Assessment of Risk • - SHARE VALUATION Concept of Present Value Share Valuation Model One Year Holding Period Multiple-year Holding Period Constant Growth Model Multiple Growth Model Discount Rate Multiplier Approach to Share Valuation Regression Analysis. BOND VALUATION Bond Returns Coupon Rate Current Yield Spot Interest Rate — Yield to Maturity (YTM) Yield to Call (YTC) Bond Prices Bond Pricing Theorems Bond Risks • - Default Risk Interest Rate Risk Bond Duration Solved Examples TECHNICAL ANALYSIS Meaning of Technical Analysis Dow Theory , Basic Principles of Technical Analysis Price Charts Trends and Trend Reversals Chart Patterns Support and Resistance Reversal Patterns _ _ Continuation Patterns Elliot Wave Theory Mathematical Indicators Moving Averages Oscillators Market Indicators Breadth of the Market Short Interest Odd-lot Index Mutual Fund Cash Ratio Technical Analysis vs Fundamental Analysis EFFICIENT MARKET THEORY Random Walk Theory The Efficient Market Hypothesis PORTFOLIO ANALYSIS Expected Return of a Portfolio Risk of a Portfolio Reduction of Portfolio Risk through Diversification Security Returns Perfectly Positively Correlated A , Security Returns Perfectly Negatively Correlated Security Returns Uncorrelated Portfolios with more than Two Securities Risk-Return Calculations of Portfolios with more than Two Securities Solved Examples . PORTFOLIO SELECTION Feasible Set of Portfolios 7 , Efficient Set of Portfolios Selection of Optimal Portfolio Limitations of Markowitz Model Single Index Model Measuring Security Return and Risk under Single Index Model Measuring Portfolio Return and Risk under Single Index Model Multi-index Model . CAPITAL ASSET PRICING MODEL (CAPM) Fundamental Notions of Portfolio Theory Assumptions of CAPM Efficient Frontier with Riskless Lending and Borrowing The Capital Market Line - The Security Market Line CAPM 7 - SML and CML Pricing of Securities with CAPM. ARBITRAGE PRICING THEORY (APT) The Return Generating Model Factors Affecting Stock Return Expected Return on Stock An Illustration Asset Pricing and Arbitrage Conclusion on APT APT and CAPM , Solved Examples . PORTFOLIO REVISION Need for Revision Meaning of Portfolio Revision Constraints in Portfolio Revision Portfolio Revision Strategies Formula Plans Constant Rupee Value Plan Constant Ratio Plan Dollar Cost Averaging PORTFOLIO EVALUATION Need for Evaluation Evaluation Perspective Meaning of Portfolio Evaluation Measuring Portfolio Return Risk Adjusted Returns Differential Return Decomposition of Performance Solved Examples ' • . FINANCIAL DERIVATIVES What are Financial Derivatives _ Forwards _ Hedging of Foreign Exchange Risk Through Currency Forwards Advantages of Forward Contracts. Disadvantages of Forwards ' . FUTURES Futures Contracts The Asset Delivery Terms _ Price and Price Limits Long and Short Positions and Open Interest Features of Futures Contracts Organised Exchange Standardised Terms .1 • f, Clearing House _ Margin System Closing of Futures Index Futures — Hedging Imperfection in Hedging Speculation Index Futures Trading in India .. OPTIONS Stock Options (Options on Shares) Call Options _ Specifications of Stock Options Option Prices in the Newspapers Trading in Call Options Profit and Loss of a Call Option Writer Determinants of the Option Premium Put Options Closing out of Options Uses of Options Hedging the Value of a Stockholding Protecting Profit Accrued on Share Hedging Anticipated Purchases Additional Income from Stockholding Speculative Profit from Options Trading . . OPTION PRICING The Black-Scholes Model Factors Affecting Option Prices Assumptions Notations

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