Introduction – Importance of Asset Management for various Organsation.Risk and
Return Relationship , Expected Rate of Return – Kinds of Risk – Trade of between Risk and
Return – Measures of Investment Risk,Investors Utility Fucntion , Calculations using Risk
Measures to compare Investment Opportunities and Distribution of Return (influence of
Thickness of tails for Assessment of Risk).
Components of Assets and Liabilities – ACM Definition – Objectives – Improtance of
Assets and Liability Management – Prerequisites for Operation of on Effectinve ACM System,
Equity Valution-Fundamental Analysis-Technical Analysis – Capitalizing Earnings – P/E Ratio.
Efficient Market Hypothesis – Their forms and Consequance – Bond evaluation – Market
Interest – Yield Spread – Yield to Maturinty – Yield Curve – Interest Rates – Yield Spread –
Yield to Maturity – Yield Curve – Interest rate Swaps and Bond Swaps – Spot and Forward rates
– Interest Rate Risk – Option Prices , Pledging Techniques and Variuation Methods .
Models of the Term structure of Interest rates – Characteristics – Interest Rate Structure
as a Computational tool for Pricing of Zero Coupon Bonds and Interest Rate Derivatives for a
general one – Factors Differsion Model for the Risk free rate of interest – Limitations of one
factor models and Tackling Issues.
Techniques involved in asset – Liability management – Gap Analysis – Simulation –
dDration Analysis – Linear and Other Mathematical Methods