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ECON X499.10 - Exchange Traded Funds & Portfolio Construction


3 weeks

About the Course

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

  • 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.


ECON X499.1, ECON X499.2, and ECON X499.4 with a grade C or better.

Mitchell E Kauffman

Your Instructor

Mitchell E Kauffman

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