Security Analysis And Portfolio Management

The second edition of the book on Security Analysis and Portfolio Management covers all the areas relevant to the theme of investment in securities. It begins with an introduction to the investment process and the risk involved in it and then explains the different methods of security analysis such as Fundamental Analysis (including economy, industry and company analysis), Technical Analysis and Random Walk Theory (including Efficient Market Hypothesis). The valuation of securities such as shares and bonds is illustrated with examples. The securities market environment and the trading system in India are also discussed in sufficient detail.

The different phases of Portfolio Management such as portfolio analysis, portfolio selection, portfolio revision and portfolio evaluation are explained in separate chapters. Pricing theories such as Capital Asset Pricing Model (CAPM), Arbitrage Pricing Theory (APT), and Option Pricing Theory are explained with suitable examples. The book also provides an introduction to Derivative Instruments in four chapters. Each chapter is supported with examples, review questions and practice exercises to facilitate learning of the concepts and theories.

The book is intended to serve as a basic textbook for the students of finance, commerce, and management. It will be useful to the students pursuing professional courses such as chartered accountancy (CA), cost and management accountancy (CMA), and chartered financial analysis (CFA). The professionals in the field of investment will find this book of immense value in enhancing their knowledge.

Two new chapters on Arbitrage Pricing Theory (APT) and Option Pricing are introduced.
Two new sections on MCX-SX (the new stock exchange in India) and Value at Risk (VaR) Analysis are also added.
A Glossary of important terms has also been appended for the benefit of readers.

Preface

1. Introduction

2. Investment

3. Securities Market

4. Stock Exchanges

5. Trading System in Stock Exchanges

6. Risk

7. Fundamental Analysis: Economy Analysis

8. Industry and Company Analysis

9. Share Valuation

10. Bond Valuation

11. Technical Analysis

12. Efficient Market Theory

13. Portfolio Analysis

14. Portfolio Selection

15. Capital Asset Pricing Model (CAPM)

16. Arbitrage Pricing Theory (APT)

17. Portfolio Revision

18. Portfolio Evaluation

19. Financial Derivatives

20. Futures

21. Options

22. Option Pricing

Appendix

Glossary

Bibliography

Index