Mar 23, 2023
PFP 475 - Financial Planning Investments
Financial resource investment theory and financial instruments most relevant to financial planning. Focus on understanding the differences in return distribution characteristics of available financial instruments and use of financial instruments within a household portfolio. Course will be offered every year. Course will not have an established scheduling pattern.
Prerequisites: A grade of C or higher in PFP 310 and admission to a College of Business major.
Upon successful completion of this course, the student will be able to:
- Describe and compare the investment characteristics of asset classes
- Explain the appropriate use for each asset class and investment vehicle based investment goals.
- Describe tax implications of holding and disposing of various security types or asset classes
- Identify, measure, and differentiate between types of investments risks.
- Explain the impact of low-probability economic events on portfolio design.
- Estimate the expected risk and return using the Capital Asset Pricing Model for securities and portfolios
- Calculate modern portfolio theory statistics in the assessment of securities and portfolios.
- Explain the use of return distributions in portfolio structuring
- Apply advanced analytic techniques to portfolio analysis.
- Identify, measure, and interpret various approaches to determining investment returns.
- Calculate and interpret risk-adjusted performance measures
- Construct a portfolio associated with a specific investment goal.
- Explain the role of portfolio rebalancing.
- Recommend an asset allocation strategy consistent with a specified risk tolerance
- Value a bond using discounted cash flow and explain how interest rates affect bond values.
- Estimate the value of a stock using discounted cash flow, the CAPM, and price multiples.
- Differentiate between fundamental and technical analysis.
- Develop alternative strategies to meet investment objectives, time horizons, and risk tolerances.
- Select an appropriate benchmark for assessing the value of portfolio management services.
- Develop an appropriate Investment Policy Statement (IPS) for a client.
- Apply duration and convexity in constructing a fixed income portfolio.
- Construct a tax-efficient diversified portfolio based on a stated goal, risk preference and time horizon.
- Calculate and communicate a client’s portfolio performance using different risk and return measures
- Explain the role of alternative investment strategies such as buy-and-hold, immunization, core and satellite, passive (indexed) and active management techniques such as tactical allocation, market timing, and sector rotation
- Evaluate how options and futures support investment risk management purposes.
- Define and describe what qualifies as an alternative investment.
- Explain asset class and describe the basic differences between the traditional asset classes and alternative asset classes
- Explain the primary rationale and uses for alternative asset classes
- Explain the potential advantages and disadvantages of utilizing alternative investment strategies
- Explain how the incorporation of alternatives asset classes can affect both absolute and risk-adjusted portfolio returns
Learner Outcomes Approval Date:
Anticipated Course Offering Terms and Locations:
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