May 17, 2022  
College Catalog 2021-2022 
    
College Catalog 2021-2022 [ARCHIVED CATALOG]

Add to Favorites (opens a new window)

BUSN 2020 - Personal Investment Fundamentals

Credit Hours: 3.00


Prerequisites: None

(replaces but does not equate to BUSN 2050)

An introductory course designed for students who are interested in learning about personal investments in financial assets. Topics addressed include techniques for participating in security markets, analysis and valuation of equity securities, fixed-income securities, mutual funds, the international securities markets, retirement planning (401Ks, IRAs, pension plans, and annuities), and portfolio management.

Billable Contact Hours: 3

Search for Sections
OUTCOMES AND OBJECTIVES
Outcome 1: Upon completion of BUSN-2020, students will be able to apply techniques that are used in the analysis and valuation of equity securities.

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.

COMMON DEGREE OUTCOMES (CDO)
• Communication: The graduate can communicate effectively for the intended purpose and audience.
• Critical Thinking: The graduate can make informed decisions after analyzing information or evidence related to the issue.
• Global Literacy: The graduate can analyze human behavior or experiences through cultural, social, political, or economic perspectives.
• Information Literacy: The graduate can responsibly use information gathered from a variety of formats in order to complete a task.
• Quantitative Reasoning: The graduate can apply quantitative methods or evidence to solve problems or make judgments.
• Scientific Literacy: The graduate can produce or interpret scientific information presented in a variety of formats.

CDO marked YES apply to this course:
Communication: YES
Critical Thinking: YES
Global Literacy: YES
Information Literacy: YES
Quantitative Reasoning: YES
Scientific Literacy: YES

COURSE CONTENT OUTLINE

  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

Primary Faculty
James, Robert
Secondary Faculty
Greek, Patrick
Associate Dean
Johnson, Elise
Dean
Balsamo, Michael



Official Course Syllabus - Macomb Community College, 14500 E 12 Mile Road, Warren, MI 48088



Add to Favorites (opens a new window)