ECON 350: Investment Economics
Credit hours (3)
Prerequisites: ECON 205
Introduction to investment theory, securities markets, risk and returns, mechanics of investment and security analysis.
Detailed Description of Course
This course is designed and taught to give students both theoretical and practical training in saving and investment decisions at various levels. Topics include contemporary issues in money, finance, portfolio management, risk analysis, trading in stocks, bonds, and options receive heavy emphasis. In addition, the interrelationships between economic activity and the financial sector is analyzed at considerable length.
1) Nature of Investment
2) Investors and Investment
3) The Investment Environment: Time Value of Money
4) Measuring Investment Return
5) Risk Analysis
6) Risk and Return with Debt Instruments
7) Investing in Instruments to Meet Liquidity Needs
8) Monetary Policy and Its Impact on the Bond and the Stock Markets
9) The Wall Street Journal
10) Sources of Financial Information
11) Analysis of the National Economy
Detailed Description of Conduct of Course
The following teaching strategies may be employed:
Lectures, videos, discussions, in-class and/or at-home activities and assignments.
Goals and Objectives of the Course
After successfully completing this course, students will be able to:
1. Explain the role of stock and commodity exchanges. (SLO 5)
2. Analyze how macroeconomic variables, such as inflation, determine interest rates and investment levels. (SLO 5)
3. Describe how changes in economic variables change the opportunity cost and present value of capital, which may affect the decisions of firms, and households. (SLO 6)
4. Interpret the CAP-M and efficient market models.
5. Explain how a foreign exchange market operates in response to changes in the world economy and macroeconomic policies. (SLO 7)
The following assessment measures may be employed: Tests, quizzes, homework, reports, presentations, or class participation. Grades and percentages depend on individual professors.
Other Course Information
Students are required to subscribe to the Wall-Street Journal for the duration of the game. In addition, all reports and charts pertaining to the stock market game must be carried out using LOTUS 1-2-3 or a similar software.
Review and Approval
September 2, 2014
December 2013 C. Vehorn
April 16, 2012
December 2004 N. Hashemzadeh