Topic-Level Outline
Days: 1
Prerequisites: None
Unit 1: Stand-alone risk
Topic A:0 Risk basics
A-1: Identifying the types of risks
A-2: Discussing risk aversion
Topic B:0 Probability analysis and rate of return
B-1: Calculating the expected rate of return
Topic C:0 Risk calculation
C-1: Calculating the standard deviation
C-2: Interpreting the coefficient of variation
Unit 2: Portfolio risk
Topic A:0 Diversification principle
A-1: Understanding correlation and its coefficient
A-2: Calculating the rate of return on a stock portfolio
Topic B:0 The Capital Asset Pricing Model
B-1: Calculating the beta coefficient
B-2: Relating risk and rate of return
Topic C:0 Ratio analysis
C-1: Understanding financial ratios
Unit 3: Future and present value of money
Topic A:0 Time value of money
A-1: Understanding the time line of money
Topic B:0 Compounding and discounting
B-1: Calculating the present and future value of money
B-2: Calculating interest rates and maturity dates
Unit 4: Even and uneven cash flows
Topic A:0 Annuities
A-1: Calculating annuities
Topic B:0 Calculating financial values
B-1: Identifying the types of interest rates
B-2: Calculating the value of uneven cash flows
B-3: Scheduling amortized loans
Unit 5: Bonds and stocks
Topic A:0 Bond fundamentals
A-1: Identifying the types of bonds
A-2: Identifying the characteristics of a bond issue
Topic B:0 Stock fundamentals
B-1: Understanding stocks
B-2: Understanding the stock market
Topic C:0 Valuation of bonds and stocks
C-1: Evaluating bonds
C-2: Evaluating constant-growth stocks
C-3: Evaluating nonconstant-growth stocks