This course focuses on developing skills for optimizing a firm's revenue from investments in financial assets like stocks, bonds, and derivative securities, including futures and options. Students will determine the value of assets in these markets and develop strategies that can be used to achieve specific investment goals. Students will investigate a wide range of related topics including:
- Financial theories and investment strategies
- Money market instruments, bonds, and common stock
- Convertibles, TIPS, and preferred shares
- Derivatives, futures, options, and swaps
The course project is an Investment Portfolio: Determining Investment Goals, Strategy, Allocation, and Purchases. Students will develop a complete investment portfolio for a fictional company based in a specific industry.
Course Learning Objectives
- Explain major financial theories, concepts, and terms, including portfolio selection theory, CAPM, APT, call and put options, futures contracts, technical analysis, present value, and the risk-return tradeoff.
- Use financial theories, concepts, and terms to critique investment strategies.
- Apply financial theories, definitions, and concepts to a realistic investment scenario.
- Create and defend a fictional investment portfolio that includes financial goals, strategies, allocation, and purchases designed to meet those goals.
Digital Resource Management (DRM) plugin, downloaded directly from the course pack web site.