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Investment Analysis syllabus

BNK 2048 units · 47 topicsAcademic year 2083/84
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Investment Analysis

8 units

1. Investment Environment (5 LHs)

  1. Meaning of investment
    1. Meaning of investment
  2. The investment process
    1. The investment process
  3. Real assets and financial assets
    1. Real assets and financial assets
  4. Types of financial assets
    1. Types of financial assets
  5. Financial intermediaries
    1. Financial intermediaries
    2. Financial markets
    3. Efficient markets
  6. Major players in the financial markets
    1. Major players in the financial markets
  7. Ethical issues in investing
    1. Ethical issues in investing.

2. Securities Markets (8 LHs)

  1. Concept and types of securities markets
    1. Concept and types of securities markets
  2. Trading of securities
    1. Trading of securities
    2. Types of markets
    3. Types of orders
    4. Trading mechanisms
  3. The rise of electronic trading
    1. The rise of electronic trading
    2. ECNs
  4. New trading strategies
    1. New trading strategies
  5. Globalization of stock markets
    1. Globalization of stock markets
    2. Trading costs
    3. Buying on margin
    4. Short sales
  6. Construction of stock market indexes
    1. Construction of stock market indexes – price-weighted index, value-weighted index, equally-weighted index
  7. Functions of Nepal Stock Exchange
    1. Functions of Nepal Stock Exchange
  8. Role of nepal securities board
    1. and Role of Nepal Securities Board.

3. Risk and Return (7 LHs)

  1. Concepts of risk and return
    1. Concepts of risk and return
  2. Measuring investment returns
    1. Measuring investment returns: holding period return, returns over multiple periods, annualizing rates of return, expected return, time series of return
  3. Inflation and real rates of return
    1. Inflation and real rates of return
  4. Measuring risk
    1. Measuring risk: variance, standard deviation, coefficient of variation
  5. Portfolio return and risk of a portfolio of risky and risk-free assets
    1. and Portfolio return and risk of a portfolio of risky and risk-free assets.

4. Efficient Diversification and CAPM (7 LHs)

  1. Diversification and portfolio risk
    1. Diversification and portfolio risk
  2. Asset allocation with two risky assets
    1. Asset allocation with two risky assets
  3. Covariance and correlation
    1. Covariance and correlation
  4. The risk-return trade-off with two-risky-assets
    1. The risk-return trade-off with two-risky-assets
  5. The mean-variance criterion
    1. The mean-variance criterion
  6. The optimal risky portfolio with a risk-free asset
    1. The optimal risky portfolio with a risk-free asset
  7. Efficient diversification with many risky assets
    1. Efficient diversification with many risky assets
  8. The efficient frontier of risky assets
    1. The efficient frontier of risky assets
  9. Choosing the optimal risky portfolio
    1. Choosing the optimal risky portfolio
  10. The Capital Asset Pricing Model
    1. The Capital Asset Pricing Model: the model, assumptions, implications, and the security market line.

5. Bond Prices and Yields (5 LHs)

  1. Bond pricing
    1. Bond pricing
  2. Bond pricing between coupon dates
    1. Bond pricing between coupon dates
  3. Bond pricing in excel
    1. Bond pricing in excel
  4. Bond yields
    1. Bond yields: yield to maturity, yield to call, realized compound return versus yield to maturity
  5. Bond prices over time
    1. Bond prices over time
  6. Yield to maturity versus holding-period return
    1. and Yield to maturity versus holding-period return.

6. Equity Valuation (5 LHs)

  1. Fundamentals of equity valuations
    1. Fundamentals of equity valuations
  2. Intrinsic value versus market price
    1. Intrinsic value versus market price
  3. Dividend discount models
    1. Dividend discount models: the constant-growth and multistage growth models
  4. Price–earnings ratios
    1. Price–earnings ratios
  5. Pitfalls in p/e analysis
    1. and pitfalls in P/E analysis.

7. Macroeconomic and Industry Analysis (5 LHs)

  1. Domestic macro economy
    1. Domestic macro economy
  2. Government policy
    1. Government policy: fiscal policy and monetary policy
    2. business cycles
    3. Economic indicators
  3. Industry analysis
    1. Industry analysis: defining an industry, sensitivity to business cycle, sector rotation, industry lifecycles, and industry structure and performance.

8. Technical Analysis (6 LHs)

  1. Concept — Technical Analysis
    1. Concept
  2. Underlying assumptions
    1. Underlying assumptions
    2. Advantages
    3. Challenges
  3. Technical trading rules and indicators
    1. Technical trading rules and indicators: contrary-opinion rules, follow the smart money, momentum indicators, stock price and volume techniques.