BUSN 2020 - Personal Investment Fundamentals

Credit Hours: 3.00

Objectives: Given an assignment(s) the learner will:

1. Explain the relationship of the business cycle to various industries with a minimum proficiency of Level 3 on the discipline rubric.
2. Describe how to compare the performance of many companies within the same industry with a minimum proficiency of Level 3 on the discipline rubric.
3. Judge how an individual stock’s price to earnings ratio is related to the market with a minimum proficiency of Level 3 on the discipline rubric.
4. Estimate long-term trends based on financial ratios with a minimum proficiency of Level 3 on the discipline rubric.

Outcome 2: Upon completion of BUSN-2020, students will be able to evaluate the merits of investing in fixed-income securities.

Objectives: Given an assignment(s) the learner will:

1. Describe the differences among bonds offered by the U.S. government, state and local governments, and corporations with a minimum proficiency of Level 3 on the discipline rubric.
2. Evaluate bonds based on ratings with a minimum proficiency of Level 3 on the discipline rubric.
3. Contrast preferred stock as an alternative investment in bonds with a minimum proficiency of Level 3 on the discipline rubric.
4. Describe how present value techniques impact the valuation of bonds with a minimum proficiency of Level 3 on the discipline rubric.
5. Develop an investment strategy for investing in bonds with a minimum proficiency of Level 3 on the discipline rubric.
6. Explain how convertible securities values are determined with a minimum proficiency of Level 3 on the discipline rubric.

Outcome 3: Upon completion of BUSN-2020, students will be able to examine the value of mutual funds as an investment alternative and strategy.

Objectives: Given an assignment(s) the learner will:

1. Explain how to evaluate the performance of mutual funds with a minimum proficiency of Level 3 on the discipline rubric.
2. Identify the key informational sources for mutual funds with a minimum proficiency of Level 3 on the discipline rubric.
3. Explain the difference between load and no-load funds with a minimum proficiency of Level 3 on the discipline rubric.
4. Compute the net asset value of a mutual fund with a minimum proficiency of Level 3 on the discipline rubric.

Outcome 4: Upon completion of BUSN-2020, students will be able to explain how effective portfolio management will reduce the risks of various investment strategies.

Objectives: Given an assignment(s) the learner will:

1. Analyze basic statistical techniques for measuring risk and return with a minimum of Level 3 on the discipline rubric.
2. Describe the principles of asset allocation across risky and risk-free portfolios with a minimum proficiency of Level 3 on the discipline rubric.
3. Explain the concept of an efficient portfolio with a minimum proficiency of Level 3 on the discipline rubric.
4. Measure investment returns over multiple periods of time with a minimum of Level 3 on the discipline rubric.
5. Determine the expected return and risk of portfolios that are developed by combining risky assets with risk-free investment with a minimum of level 3 on the discipline rubric.

Outcome 5: Upon completion of BUSN-2020, students will be able to evaluate derivative products and introduce the analytics of derivative valuation.

Objectives: Given an assignment(s) the learner will:

1. Understand the basic concept of an option with a minimum of Level 3 on the discipline rubric.
2. Explain strike price, intrinsic value, and speculative premiums for options with a minimum of Level 3 of the discipline rubric.
3. Determine the tax and commission factors associated with derivatives with a minimum of Level 3 of the discipline rubric.
4. Calculate the profit to various option positions with a minimum of Level 3 of the discipline rubric.
5. Formulate option strategies to modify portfolio risk-return attributes with a minimum of Level 3 of the discipline rubric.

1. Elements of Investments
   1. Investments: Background and Issues
   2. Financial Securities
   3. Security Markets
   4. Mutual Funds and Other Investment Companies
2. Portfolio Theory
   1. Risk and Return
   2. Efficient Diversification
   3. Capital Asset Pricing and Arbitrage Pricing Theory
   4. Efficient Markets and the Behavioral Critique
3. Debt Securities
   1. Bond Prices and Yields
   2. Managing Bond Portfolios
4. Security Analysis
   1. Macroeconomics and Industry Analysis
   2. Equity Valuation
   3. Financial Statement Analysis
5. Derivative Markets
   1. Options Markets
   2. Option Valuation
   3. Future Markets
6. Active Investment Management
   1. Performance Evaluation and Active Portfolio Management
   2. Globalization & International Investing
   3. Behavioral Finance and Technical Analysis
   4. Taxes, Inflation, and Investment Strategy
   5. Investors and the Investment Process