Security Analysis in Investment Decisions

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SYLLABUS
SECURITY ANALYSIS & INVESTMENT MANAGEMENT
MBA–3rd SEMESTER, M.D.U., ROHTAK
External Marks : 70
Time : 3 hrs.

UNIT - I
Internal Marks : 30
Decision Support System : Overview, components and classification, steps in constructing a dss, role in business, group decision support system.

UNIT - II
Information system for strategic advantage, strategic role for information system, breaking business barriers, reengineering business process, improving business qualities.

UNIT - III
Information system analysis and design, information SDLC, hardware and software acquisition, system testing, documentation and its tools, conversion methods.

UNIT - IV
ZAD
Marketing IS, Manufacturing IS, Accounting IS, Financial IS.

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SECURITY ANALYSIS & INVESTMENT MANAGEMENT
FINANCE : SPECIALIZATION PAPERS

UNIT – I

Q.Define Investment.
Ans. Meaning of Investment : Investment involves making of a sacrifice in the present with the hope of deriving future benefits. Investment has many meanings and facets. The two most important features of an investment are current sacrifice and future benefit. We can now give a simple yet a broad definition of investment. We can define investment as “postponed consumption”.

When you postpone consumption, sacrifice takes place n the present and is certain whereas the benefits occur n future and are uncertain. Therefore, risk and expected return from the investment are the two key determinants of investment process. Investment Process : A typical investment decision undergoes a five step procedure which, in turn, forms the basis of the investment process. These steps are: (1)Determine the investment objectives and policy (2)Undertake Security Analysis.

(3)Construct a portfolio.
(4)Review the Portfolio.
COMPUTERS
(5)Evaluate the performance of the portfolio. Investment Attributes/ Factors Influencing Selection of Investment : In chossing specific investments, investors will need definite ideas regarding features which their portfolios should possess. For evaluation of investment avenue, the following attributes are relevant:

(1)Returns
(2)Capital Appreciation
ZAD
|-16|-1640Safety and Security of Funds. |
|40(|(4)Tax Benefits |
|3) |(5)Concealability |
| |(6)Adequate Liquidity |

(7)Stability of Income
(8)Risk.
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SECURITY ANALYSIS & INVESTMENT MANAGEMENT

Q.Define Risk. What are the different types of risk influences on investment? Ans : Meaning of Risk : Risk can be defined as the probability that the expected return from the security will not materialize. Every investment involves uncertainties that make future investment returns risk-prone. Uncertainties could be due to the political, economic and industry factors.

Types of Investment Risk: Investment Risks are:
Types of Investment Risk

Systematic Risk

Market Risk
Interest Rate Risk
Purchasing Power Risk...
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