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Analyze attributes of financial instruments
Assessment Strategies
Exam
Criteria
Describe the differences between financial instruments and securities
Evaluate primary market transactions and secondary market transactions
Verify the division of capital, risk, return, and control imposed on a firm by a mixture of different types of primary market issues
Define the allocation of risk, return, and control created by primary market equity issues
Explain the impact of bond maturity on bond interest rates
Explain the allocation of risk, return, and control created by primary market debt issues
Evaluate the different types of money market instruments
Explain the difference between futures contracts and options
explain how foreign exchange instruments are used by investors
Explain the characteristics of cryptoassets
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Compute rates of return on various financial instruments
Assessment Strategies
Excel workbooks and calculator-based problems
Criteria
Your computations fall within the accuracy range specified by the instructor
Compute Yield to Maturity for different bonds
Compute rate of return for non-constant payments
Compute the earnings per share
Compute the price to earnings ratio
Compute the current yield
Compute margin requirements given different scenarios
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Evaluate securities markets and transactions
Assessment Strategies
Exam
Criteria
Categorize Foreign Exchange Instruments
Break down Money Market Instruments
Identify indexes based on market capitalization
Choose indexes based on value
Choose indexes based on growth
Assess indexes by sector and industry
Critique global stock market indexes
Analyze the Volatility Index (VIX)
Evaluate Brokerage Firms using the MorningStar ratings
Produce short sales in simulation platform
Select exchange-traded funds (ETF)
Relate the role of hedge funds to financial markets
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Differentiate between mutual funds and other investment companies
Assessment Strategies
Exam
Criteria
Analyze default risk
Analyze interest rate risk
Explain maturity risk
Classify and compare investment companies
Classify and compare brokers
Analyze Unit Investment Trusts
Analyze Managed Investment Companies
Compute costs of investing in mutual funds
Analyze investment policies of mutual funds
Explore exchange-traded funds (ETF)
Compute mutual fund returns
Calculate net asset value (NAV)
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Measure risk and return of financial instruments
Assessment Strategies
Excel Spreadsheet, Presentation
Criteria
You choose a portfolio of stocks and indexes; input pricing into Excel spreadsheet
Compute the distribution of stocks based on allocation and stock price
Compute Holding Period Return over multiple periods
Compute Arithmetic Average Returns
Compute geometric average returns
Compute dollar-weighted returns (IRR)
Utilize the Fisher equation
Annualize rates of return
Differentiate between the real interest rate, the nominal interest rate and inflation
Compute the portfolio expected return using Scenario Analysis in Excel
Compute variance and standard deviation of rates of return using Excel
Compute the distribution of monthly returns
Compare asset classes and compare risky assets
Illustrate the Normal Distribution and the Investment Horizon
Illustrate proper use of the following functions in Excel: NORM.DIST, NORM.S.DIST, NORMSINV, NORMINV
Identify the most optimal portfolios based on utility theory
Verbally describe your thought process in choosing your portfolio; show your computations
Presentation is approximately 10 minutes
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Apply principles of the Capital Asset Pricing Model and arbitrage pricing theory
Assessment Strategies
Exam
Criteria
Construct the Capital Asset Pricing Model (CAPM) in Excel
Graph the capital allocation line
Graph the Security Market Line
Identify the CAPM basic assumptions
Compute covariance
Compute correlation
Identify and explain Beta as the slope of the line
Estimate Beta using regression analysis
Explain Arbitrage Pricing Theory
Explain Multi-factor Models
Explain the Efficient Market Hypothesis
Evaluate how well the CAPM predicts Risk Premiums
Explain Arbitrage Pricing Theory
Measure the risk-adjusted return of a portfolio
Compute the Jensen alpha
Compute the Treynor index
Compute the Sharpe Ratio
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Use a simulation stock trading platform
Assessment Strategies
Presentation, Skill Demonstration
Criteria
Place a limit order
Place a market order
Place a stop-loss order
Place a covered call
Produce short sales in simulation platform
Verbally explain your reason for the equity and options you chose for your portfolio
Presentation is approximately 10 minutes
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Apply specific strategies in the options markets
Assessment Strategies
Excel Spreadsheet, Presentation
Criteria
Compute intrinsic value for options
Explain types of options
Create option strategies for hedging
Use Excel to draw payoff diagrams for stock options
Clarify options “in the money”
Clarify options “at the money”
Clarify options “out of the money"
Identify changes in option value with changes in strike price
Use Excel to graph option payoff charts for different option strategies
Compute payoff and profit/loss for call option strategies
Compute payoff and profit/loss for put option strategies
Compute and plot rates of return for option portfolios
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Explore other derivative markets
Assessment Strategies
Project
Criteria
Discuss long-term equity anticipation securities (LEAPS)
Describe the Chicago Board Options of Exchange (CBOE)
Discuss stock index options
Model currency and interest rate options
Describe warrants
Model futures and forward contracts
Model investing in commodity futures
Discuss the units of commodity contracts
Explain the leverage of futures and forward contracts
Discuss programmed trading and index arbitrage
Identify currency futures and risk reduction through hedging with currency futures
Discuss swaps
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Use the technical analysis approach
Assessment Strategies
Presentation, Skill Demonstration
Criteria
Identify demand support and supply resistance in simulation tool
Chart multiple stocks using a stock simulation tool
Explain the Dow Theory
Illustrate divergence in the simulation tool
Describe the primary trend, secondary trend, and tertiary trend
Compute moving averages in Excel
Explain bar and candlestick charts, reversal patterns, and continuation patterns
Explain Bull Flag in simulation tool
Explain Bull Pennant in simulation tool
Explain Bear Flag in simulation tool
Explain Bear Pennant
Explain technical analysis signals
Describe the advance-decline ratio
Explain buy-sell indicators
Explain the put-call ratio