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Course Description

This course introduces financial decision-making. Why it is that future cash flows need to be discounted using present value analysis? What are the best methods to calculate the fluctuating values of payments made at different times? Gain experience selecting the appropriate financial tools to determine the optimal interest rate to apply in various cash flow scenarios. Other topics include the valuation of bonds and stocks, the relationship between risk and the expected return on an asset, analysis of different types of risk, and the Capital Asset Pricing Model (CAPM).

Learner Outcomes

Upon successful completion of this course, students will be able to:
• Understand why future cash flows are less valuable than the same cash flow made today.
• Use tools to convert future cash flows into present value amounts.
• Recognize the difference between stated and effective annual interest rates.
• Determine willingness to pay for bonds and stocks, given assumed future expected payments of these assets.
• Understand the role of risk reduction through investment diversification.
• Calculate the expected return on an asset as a function of the amount of undiversifiable risk.

Prerequisites

Must have completed ECON 1 - Principles of Microeconomics, and ECON 2 - Principles of Macroeconomics, (or equivalent courses) with a C grade or higher in each course. 

This Application for Candidacy must be completed and approved in order to enroll in this course and others within the Strategic Investments Program. 

 

Applies Towards the Following Certificates

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Application

Name
Strategic Investments Application
Enroll Now - Select a section to enroll in
Type
Class
Days
T
Time
6:30PM to 8:30PM
Dates
Oct 15, 2024 to Oct 29, 2024
Campus
UCSB Campus
Type
Class
Days
M
Time
7:00PM to 8:00PM
Dates
Nov 04, 2024
Campus
UCSB Campus
Schedule and Location
Contact Hours
18.0
Location
Delivery Options
Course Fee(s)
Potential Discount(s)
Available for Credit
2 units
Instructors
Section Notes

Steps to Enroll

How to Access Your Online Course:
IMPORTANT: Click here for instructions on how to access your online course

Registration Notice: 

Self-enrollment will be available until 11:59 PM PT two days after the first day of class.  If you wish to enroll after that time, please contact PaCE Support at help@professional.ucsb.edu

Required Textbook(s):
TBD

No refunds after 10/08/24

A full refund is given (less a $40 administrative fee per course) if notice of dropping from the course is received by PaCE 5 or more business days prior to the first day of instruction.  A 50% refund is given (less a $40 administrative fee) if notice of dropping from the course is received 1-4 days prior to the course start date.  See the full Drop Policy here.