SDSU Finance 329: Investments

Finance 329, Investments, at San Diego State University, is a core upper-division finance course designed to provide students with a comprehensive understanding of the principles and practices of investment management. The course typically explores various asset classes, investment strategies, and portfolio management techniques.

Course Content

The curriculum commonly covers a wide array of topics, often starting with a foundational overview of the investment environment. This includes:

• Securities Markets: An examination of different types of markets (primary, secondary, money, capital) and market participants.
• Asset Classes: Detailed study of stocks, bonds, derivatives (options, futures), and alternative investments (real estate, hedge funds, private equity).
• Risk and Return: Understanding the relationship between risk and return, measuring risk (e.g., standard deviation, beta), and calculating expected returns.
• Portfolio Theory: Constructing efficient portfolios using diversification techniques, understanding the Capital Asset Pricing Model (CAPM), and evaluating portfolio performance.
• Security Analysis: Analyzing individual securities (stocks and bonds) using fundamental and technical analysis. Fundamental analysis involves evaluating financial statements and economic indicators, while technical analysis uses historical price and volume data to identify trends.
• Valuation: Learning various valuation methods, such as discounted cash flow analysis for stocks and bond valuation techniques based on yield to maturity.
• Derivatives: An introduction to options and futures contracts, including their use in hedging and speculation.
• Investment Strategies: Exploring active and passive investment strategies, including index investing, value investing, and growth investing.

Learning Outcomes

Upon successful completion of Finance 329, students should be able to:

• Understand the characteristics of various investment vehicles.
• Analyze financial statements and assess the financial health of companies.
• Apply valuation techniques to determine the intrinsic value of securities.
• Construct and manage investment portfolios based on risk tolerance and investment objectives.
• Evaluate portfolio performance and make adjustments as needed.
• Comprehend the role of ethics and regulations in the investment industry.

Teaching Methodology

The course typically employs a mix of lectures, case studies, and hands-on exercises. Some instructors may incorporate simulations, where students manage virtual portfolios and make investment decisions in a simulated market environment. Guest speakers from the investment industry are sometimes invited to share their experiences and insights.

Assessment

Student performance is usually evaluated through a combination of:

• Exams: Covering the theoretical concepts and quantitative methods discussed in class.
• Quizzes: Assessing understanding of assigned readings and lecture material.
• Projects: Applying investment concepts to real-world scenarios, such as analyzing a company and recommending an investment strategy.
• Portfolio Simulation: Managing a virtual portfolio and tracking its performance.
• Class Participation: Contributing to class discussions and demonstrating engagement with the course material.

Prerequisites

Typically, prerequisites for Finance 329 at SDSU include introductory finance and accounting courses. Students are expected to have a basic understanding of financial statements and financial concepts.

Importance

Finance 329 provides a critical foundation for students pursuing careers in investment management, financial analysis, portfolio management, and related fields. It also equips students with the knowledge and skills necessary to make informed investment decisions for their own personal finances.