MFA-104 Investment Analysis and Portfolio Management Notes from Unnati Educations are a 69-page printed book covering all 4 units, with 46 worked illustrations, 29 figures and 65 exam-style questions (40 short, 25 long). They follow the GGSIPU MBA (Financial Analysis) Semester 2 syllabus for the batch admitted 2021-22 onwards.
Written by Prateek Talwar, Founder, Unnati Educations (ACS, ICSI) · Reviewed by Sheetal Kirola, Academic Head, M.Ed. (academic review) · Checked against MBA (Financial Analysis) Scheme and Syllabus 2021-22 onwards, ipu.ac.in · Updated 28 October 2026 · Editorial policy
Scheme: MBA (FA) 2021-22 onwards | Applies to: batch admitted 2021-22 onwards | Verified against: MBA (FA) Scheme and Syllabus, ipu.ac.in, 28 Oct 2026
MFA-104 Investment Analysis and Portfolio Management at a glance: GGSIPU MBA (FA) Sem 2 credits, units and exam pattern
MFA-104 is a Core paper in Semester 2 of the GGSIPU MBA (Financial Analysis) programme. It sits with ten other GGSIPU MBA (FA) Semester 2 papers, and it is where return, risk and beta first turn into buy, hold and sell decisions.
| Code and title | MFA-104 Investment Analysis and Portfolio Management |
|---|---|
| Category and credits | Core · L 3, T/P nil · 3 credits |
| Marks | 100: 50 internal + 50 end-term (all MBA (FA) theory courses) |
| Internal 50, split | Class Test I 15 + Class Test II 15 + assignments, viva or class participation 20 |
| End-term | Written exam of 50 marks conducted by the University; question-wise pattern not printed in the official PDF |
| Units and hours | 4 units: 10 + 12 + 10 + 10 = 42 hours |
| Applies to | Batch admitted 2021-22 onwards |
| Paired lab | None (theory-only paper) |
MFA-104 Investment Analysis and Portfolio Management Notes unit-wise: 46 worked illustrations and 65 exam questions across 4 units
These GGSIPU MBA (FA) Semester 2 Investment Analysis and Portfolio Management notes give each unit 10 sections, a revision table, a case study and an exam question bank. The official PDF numbers units only, so the headings use the book's unit titles. For the rest of the programme, see the GGSIPU MBA (FA) notes.
MFA-104 Unit 1: Investment, Risk and Return
Pages 5 to 21. It separates investment from speculation and gambling, covers the investment process and Indian avenues, then builds the statistics the paper runs on: holding period return, geometric mean, CAGR, real return, standard deviation, covariance, correlation and R². It ends with portfolio risk, the minimum variance portfolio and beta. 15 illustrations, 7 figures, 16 questions.
| Stock | Weight | Beta | Weight × beta |
|---|---|---|---|
| X | 50% | 1.2 | 0.60 |
| Y | 30% | 0.8 | 0.24 |
| Z | 20% | 1.5 | 0.30 |
| Portfolio beta | 1.14 (slightly more volatile than the market) | ||
MFA-104 Unit 2: Market Efficiency and Portfolio Theory
Pages 22 to 36, the theory-heavy unit: EMH and its tests (runs test, event studies), market anomalies, then the Markowitz model, efficient frontier, indifference curves, investor equilibrium, the Single Index Model, the Capital Market Line and CAPM. 8 illustrations, 7 figures, 17 questions.
| Basis | CML | SML |
|---|---|---|
| Risk measure | Total risk (σ) | Systematic risk (β) |
| Applies to | Efficient portfolios only | All securities and portfolios |
| Equation | Rf + [(Rm − Rf) ÷ σm] σp | Rf + β(Rm − Rf) |
Quick look: CML vs SML (from page 35)
- Basis
- Risk measure
- CML
- Total risk (σ)
- SML
- Systematic risk (β)
- Basis
- Applies to
- CML
- Efficient portfolios only
- SML
- All securities and portfolios
- Basis
- Equation
- CML
- Rf + [(Rm − Rf) ÷ σm] σp
- SML
- Rf + β(Rm − Rf)
MFA-104 Unit 3: Security Analysis and Valuation
Pages 37 to 53. The E-I-C framework (Porter's five forces, DuPont), equity valuation (dividend discount, two-stage growth, FCFE, P/E), technical analysis (Dow Theory, candlesticks, moving averages, RSI) and bonds (yield curve, YTM, Malkiel's theorems, duration). 13 illustrations, 8 figures, 16 questions.
Quick look: Gordon's constant-growth model in four steps (from page 42)
- Last dividend D0 = ₹4, growth g = 6%, required return ke = 14%, market price ₹48.
- Next dividend D1 = 4 × 1.06 = ₹4.24.
- Value P0 = D1 ÷ (ke − g) = 4.24 ÷ 0.08 = ₹53.
- ₹53 is above the ₹48 market price, so the share is under-valued: a buy signal.
MFA-104 Unit 4: Portfolio Management and Evaluation
Pages 54 to 68. The portfolio process, PMS under SEBI rules, asset allocation by life stage, passive, active and formula strategies (rupee cost averaging, CPPI), NAV, TWR and MWR, then Sharpe, Treynor, Jensen, Sortino and Fama-French. 10 illustrations, 7 figures, 16 questions.
| Fund | Sharpe (rank) | Treynor (rank) | Why |
|---|---|---|---|
| A | 0.500 (2) | 7.50 (3) | Middle risk on both measures |
| B | 0.583 (1) | 7.78 (2) | Lowest σ, so Sharpe rewards it |
| C | 0.440 (3) | 7.86 (1) | High σ but moderate β: poorly diversified |
Quick look: same three funds, different rankings (from pages 62 and 63)
- Fund
- A
- Sharpe (rank)
- 0.500 (2)
- Treynor (rank)
- 7.50 (3)
- Why
- Middle risk on both measures
- Fund
- B
- Sharpe (rank)
- 0.583 (1)
- Treynor (rank)
- 7.78 (2)
- Why
- Lowest σ, so Sharpe rewards it
- Fund
- C
- Sharpe (rank)
- 0.440 (3)
- Treynor (rank)
- 7.86 (1)
- Why
- High σ but moderate β: poorly diversified
MFA-104 exam corner: 40 short-answer and 25 long-answer questions, unit by unit
Each MFA-104 unit ends with short-answer ("2–5 Marks") and long-answer ("10–15 Marks") questions. They are exam-style practice questions without past-year tags; the method for each numerical is in that unit's illustrations.
| Unit | Short (2–5 Marks) | Long (10–15 Marks) | Worked illustrations |
|---|---|---|---|
| 1 Investment, Risk and Return | 10 | 6 | 15 |
| 2 Market Efficiency and Portfolio Theory | 10 | 7 | 8 |
| 3 Security Analysis and Valuation | 10 | 6 | 13 |
| 4 Portfolio Management and Evaluation | 10 | 6 | 10 |
| Total | 40 | 25 | 46 |
MFA-104 questions and illustrations per unit
- Unit
- 1 Investment, Risk and Return
- Short (2–5 Marks)
- 10
- Long (10–15 Marks)
- 6
- Worked illustrations
- 15
- Unit
- 2 Market Efficiency and Portfolio Theory
- Short (2–5 Marks)
- 10
- Long (10–15 Marks)
- 7
- Worked illustrations
- 8
- Unit
- 3 Security Analysis and Valuation
- Short (2–5 Marks)
- 10
- Long (10–15 Marks)
- 6
- Worked illustrations
- 13
- Unit
- 4 Portfolio Management and Evaluation
- Short (2–5 Marks)
- 10
- Long (10–15 Marks)
- 6
- Worked illustrations
- 10
- Unit
- Total
- Short (2–5 Marks)
- 40
- Long (10–15 Marks)
- 25
- Worked illustrations
- 46
One question per unit, with an answer pointer:
- Unit 1: Bought at ₹150, ₹6 dividend, sold at ₹168 after a year. Find the HPR. Pointer: (6 + 18) ÷ 150 = 16%.
- Unit 2: Rf = 6%, Rm = 15%, β = 1.1. Should a share expected to earn 14% be bought? Pointer: required 6 + 1.1 × 9 = 15.9%; 14% is lower, so over-valued: do not buy.
- Unit 3: D0 = ₹3, g = 5%, ke = 12%. Value the share. Pointer: D1 = ₹3.15; P0 = 3.15 ÷ 0.07 = ₹45.
- Unit 4: Rf 7%, Rm 14%; Fund P: 18%, σ 20%, β 1.3. Find Sharpe, Treynor and Jensen's alpha. Pointer: Sharpe 0.55, Treynor 8.46, alpha 18 − 16.1 = +1.9%.
The MFA-104 notes work through 46 illustrations and list 40 short-answer and 25 long-answer questions across 4 units, supported by 29 figures. More practice sits in the MFA-104 important questions.
Who writes and checks the MFA-104 Investment Analysis notes?
- Prateek Talwar, author. Founder, Unnati Educations; Associate Company Secretary (ACS), ICSI, membership no. 58704, since 15 May 2019; B.Com, University of Delhi (School of Open Learning), 2012. He writes our MBA finance and management notes. Author profile.
- Sheetal Kirola, academic review. Academic Head, Unnati Educations; M.Ed.; 7 years of experience. She checks clarity and syllabus fit. Reviewer profile.
This 2026-27 edition of the Investment Analysis and Portfolio Management notes in English is mapped to the MBA (Financial Analysis) Scheme and Syllabus 2021-22 onwards. Examples use Indian data: the Nifty 50 as market proxy, the 10-year G-Sec yield as Rf, and the SEBI (Portfolio Managers) Regulations, 2020. Last updated 28 October 2026. How we write and check notes is set out in our editorial policy.
The same team prepares GGSIPU important questions for every course we cover.
How to write MFA-104 answers: formula-first numericals, labelled frontier diagrams and long theory answers
MFA-104 mixes numericals and theory. For numericals, the book's rule: formula first, working in a small table, then one line of interpretation, because a beta or σ means little until you say what it tells an investor.
Worked example: comparing two securities with CV
| Security | Expected return | σ | CV = σ ÷ return |
|---|---|---|---|
| X | 12% | 6% | 0.50 |
| Y | 15% | 9% | 0.60 |
Coefficient of variation, formula then working
- Security
- X
- Expected return
- 12%
- σ
- 6%
- CV = σ ÷ return
- 0.50
- Security
- Y
- Expected return
- 15%
- σ
- 9%
- CV = σ ÷ return
- 0.60
Interpretation: Y earns more, but X carries less risk per unit of return, so a risk-averse investor prefers X.
In Unit 2, draw first: investor equilibrium needs the efficient frontier, three indifference curves and a labelled tangency point. For "Is the Indian market efficient?", give the book's verdict: largely weak-form for liquid stocks, partly semi-strong, not strong-form, plus SEBI's role.
In Unit 3, describe a candlestick by shape, position in the trend and signal; a hammer and a hanging man differ only by the trend before them. In Unit 4, different Sharpe and Treynor rankings come down to diversification. Practise this format on GGSIPU MBA (FA) important questions.
MFA-104 and the GGSIPU MBA (FA) Sem 2 papers it connects to
MFA-104 has no paired lab. For every Sem 2 paper's units, see the GGSIPU MBA (FA) syllabus.
Papers that feed into MFA-104:
- MFA-102 Financial Management: cost of equity uses the CAPM from Unit 2.
- MFA-108 Macro and Mathematical Economics: inflation, rates and the business cycle drive economic analysis in Unit 3.
- MFA-106 Business Analytics and MFA-120 Business Analytics Lab: regression is how beta is estimated in Unit 1.
- MFA-110 Business Research: hypothesis testing underpins the runs test in Unit 2.
The other Sem 2 papers are MFA-112 Marketing Management, MFA-114 Human Resource Management, MFA-116 Minor Project, MFA-118 Professional Skill Development (NUES) and MFA-122 MOOC/Open Elective. The Sem 3 elective MFA-211 Fixed Income Securities extends Unit 3's bonds.
Systematic and unsystematic risk in investment analysis: excerpt from page 9 of the MFA-104 notes
Excerpt from page 9, rewritten for the web.
4.1 Meaning of risk
Risk is the possibility that the actual return on an investment will differ from the expected return, including the chance of losing part or all of the money invested. In investment analysis it is measured statistically by how widely returns vary, mainly through variance and standard deviation.
Risk is not the same as uncertainty. Under risk, the possible outcomes and their probabilities are known or can be estimated. Under uncertainty, those probabilities are unknown. The total risk of a security has two parts: Total risk = Systematic risk + Unsystematic risk.
4.2 Systematic risk
Systematic risk comes from factors that affect the whole market or economy. Because it hits all securities together, diversification cannot remove it. It is also called market risk or non-diversifiable risk, and it is measured by beta (β).
| Type | Meaning | Example |
|---|---|---|
| Market risk | Prices move with the overall market mood, bull or bear | Most shares fell in March 2020 in the COVID-19 crash |
| Interest rate risk | Rate changes move security prices; bond prices fall when rates rise | RBI raises the repo rate, bond prices fall and borrowing costs rise |
| Purchasing power (inflation) risk | Inflation cuts the real value of returns | An FD at 7% with 6% inflation gives only about 1% real return |
| Exchange rate risk | Currency movements change returns | Rupee depreciation hurts importers and helps IT exporters |
| Political and regulatory risk | Changes in government, taxes, laws or policy | A new tax on capital gains, or a ban on a product |
Types of systematic risk (page 9)
- Type
- Market risk
- Meaning
- Prices move with the overall market mood, bull or bear
- Example
- Most shares fell in March 2020 in the COVID-19 crash
- Type
- Interest rate risk
- Meaning
- Rate changes move security prices; bond prices fall when rates rise
- Example
- RBI raises the repo rate, bond prices fall and borrowing costs rise
- Type
- Purchasing power (inflation) risk
- Meaning
- Inflation cuts the real value of returns
- Example
- An FD at 7% with 6% inflation gives only about 1% real return
- Type
- Exchange rate risk
- Meaning
- Currency movements change returns
- Example
- Rupee depreciation hurts importers and helps IT exporters
- Type
- Political and regulatory risk
- Meaning
- Changes in government, taxes, laws or policy
- Example
- A new tax on capital gains, or a ban on a product
4.3 Unsystematic risk
Unsystematic risk comes from factors specific to one company or industry: business, financial, management, credit and liquidity risk. Unlike market risk, it can be reduced or almost eliminated by holding many securities across different industries. That is why it is also called specific, unique or diversifiable risk.
Do the MFA-104 notes cover the full GGSIPU syllabus?
Yes. Every topic listed for MFA-104 in the official 2021-22 onwards syllabus has a matching section in the notes; no gaps found.
| Official unit | Official topics | Where in the notes | Status |
|---|---|---|---|
| Unit I (10 hours) | Investment: meaning, nature, scope, features, process, avenues; risk types; return computation; risk of security and portfolio; correlation, covariance, R²; beta; division of total risk | Sections 1 to 10, pages 5 to 20 | Covered |
| Unit II (12 hours) | Market efficiency: forms, EMH, diversion, measurement; MPT; efficient frontier and utility; indifference curve; investor equilibrium; Single Index Model; capital market theory; CAPM | Sections 1 to 10, pages 22 to 35 | Covered |
| Unit III (10 hours) | Fundamental analysis: E-I-C, stock and equity valuation; technical analysis: rationale, assumptions, candlesticks, indicators; bonds: term structure, yield, duration, valuation | Sections 1 to 10, pages 37 to 52 | Covered |
| Unit IV (10 hours) | Portfolio building, strategies, valuation; Sharpe, Jensen, Treynor, Sortino; Fama-French models | Sections 1 to 10, pages 54 to 67 | Covered |
Official MFA-104 topics mapped to the notes
- Official unit
- Unit I (10 hours)
- Official topics
- Investment: meaning, nature, scope, features, process, avenues; risk types; return computation; risk of security and portfolio; correlation, covariance, R²; beta; division of total risk
- Where in the notes
- Sections 1 to 10, pages 5 to 20
- Status
- Covered
- Official unit
- Unit II (12 hours)
- Official topics
- Market efficiency: forms, EMH, diversion, measurement; MPT; efficient frontier and utility; indifference curve; investor equilibrium; Single Index Model; capital market theory; CAPM
- Where in the notes
- Sections 1 to 10, pages 22 to 35
- Status
- Covered
- Official unit
- Unit III (10 hours)
- Official topics
- Fundamental analysis: E-I-C, stock and equity valuation; technical analysis: rationale, assumptions, candlesticks, indicators; bonds: term structure, yield, duration, valuation
- Where in the notes
- Sections 1 to 10, pages 37 to 52
- Status
- Covered
- Official unit
- Unit IV (10 hours)
- Official topics
- Portfolio building, strategies, valuation; Sharpe, Jensen, Treynor, Sortino; Fama-French models
- Where in the notes
- Sections 1 to 10, pages 54 to 67
- Status
- Covered
Check any MFA-104 Investment Analysis and Portfolio Management IPU notes, ours included, against the MBA (Financial Analysis) Scheme and Syllabus 2021-22 onwards (ipu.ac.in).
Every course in GGSIPU notes is mapped to its official PDF the same way.
MFA-104 Investment Analysis notes FAQs
How do I get the full MFA-104 notes?
Tap "Get Full Notes" or the WhatsApp button at the end of this page and send the pre-filled message. The full MFA-104 notes come as a printed book only; they are not sold as a PDF. Delivery takes a maximum of 5 to 7 days, and the exact time depends on your location. Price and payment details are shared on WhatsApp.
What is the passing mark for MFA-104?
MFA-104 is marked out of 100: 50 internal and 50 end-term, as for every MBA (FA) theory course. The MBA (FA) Scheme and Syllabus 2021-22 onwards does not print a pass percentage for the paper, so we do not quote one. Minimum marks, re-appear and result rules are set by GGSIPU Ordinance 11; read the current version on ipu.ac.in or ask your institute's exam cell.
Which MFA-104 unit has the most numericals?
Unit 1, Investment, Risk and Return, has the most: 15 worked illustrations on holding period return, CAGR, real return, standard deviation, covariance, portfolio risk, beta and the split of total risk. Unit 3 is next with 13, mainly on share valuation, RSI and bonds. Unit 2 has the fewest, 8, because it leans towards theory and diagrams such as the efficient frontier.
Do the MFA-104 notes follow the current MBA (FA) syllabus?
Yes. The MFA-104 notes are mapped to the MBA (Financial Analysis) Scheme and Syllabus 2021-22 onwards on ipu.ac.in, which places MFA-104 in Semester 2 as a Core paper with 3 credits. All four official units and every listed topic, from investment avenues to the Fama-French models, have a matching section. If the syllabus is revised, we update the notes and this page.
How is the MFA-104 internal assessment of 50 marks split?
For MFA-104, the scheme splits the 50 internal marks into Class Test I for 15 marks, Class Test II for 15 marks, and 20 marks for individual assignments, presentation, viva-voce, group discussion or class participation. The two class tests follow the University's academic calendar. The other 50 marks come from the end-term written exam conducted by the University.
Are the MFA-104 notes available as a PDF?
No. The full MFA-104 notes are sold only as a printed book of 69 pages, not as a PDF.
Get the full MFA-104 Investment Analysis and Portfolio Management Notes on WhatsApp
| Unit | Pages | Illustrations | Figures | Exam questions |
|---|---|---|---|---|
| 1 Investment, Risk and Return | 17 | 15 | 7 | 16 |
| 2 Market Efficiency and Portfolio Theory | 15 | 8 | 7 | 17 |
| 3 Security Analysis and Valuation | 17 | 13 | 8 | 16 |
| 4 Portfolio Management and Evaluation | 15 | 10 | 7 | 16 |
| Book total (with cover and index) | 69 | 46 | 29 | 65 |
What the printed MFA-104 book contains
- Unit
- 1 Investment, Risk and Return
- Pages
- 17
- Illustrations
- 15
- Figures
- 7
- Exam questions
- 16
- Unit
- 2 Market Efficiency and Portfolio Theory
- Pages
- 15
- Illustrations
- 8
- Figures
- 7
- Exam questions
- 17
- Unit
- 3 Security Analysis and Valuation
- Pages
- 17
- Illustrations
- 13
- Figures
- 8
- Exam questions
- 16
- Unit
- 4 Portfolio Management and Evaluation
- Pages
- 15
- Illustrations
- 10
- Figures
- 7
- Exam questions
- 16
- Unit
- Book total (with cover and index)
- Pages
- 69
- Illustrations
- 46
- Figures
- 29
- Exam questions
- 65
Format: printed book only, not available as a PDF. Each unit adds a revision table and an Indian case study. Delivery: a maximum of 5 to 7 days; the rest depends on your location. Price and payment are shared on WhatsApp.
Order the printed MFA-104 Investment Analysis and Portfolio Management Notes on WhatsApp (4 units, 69 pages)Unnati Educations is an independent education provider based in Vikaspuri, Delhi. We are not affiliated with, authorised by, or endorsed by Guru Gobind Singh Indraprastha University (GGSIPU). 'GGSIPU' and 'IPU' are used only to describe the syllabus our notes follow. For official information, visit ipu.ac.in.
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