OSU Finance 722: Investments

Finance 722, Investments, at Ohio State University's Fisher College of Business, offers a comprehensive exploration of investment strategies, portfolio management, and financial markets. It's a core course for many MBA and specialized finance programs, providing students with the theoretical framework and practical skills necessary to succeed in the competitive world of asset management and investment analysis.

The course curriculum typically covers a wide array of topics, beginning with a foundational understanding of asset valuation. Students delve into the principles of discounted cash flow analysis, relative valuation techniques, and the application of these methods to various asset classes, including stocks, bonds, and derivatives. A significant portion of the course focuses on equity valuation, examining industry analysis, company-specific financial statement analysis, and forecasting future performance.

Beyond individual asset valuation, Finance 722 emphasizes portfolio management. Students learn about modern portfolio theory (MPT), including concepts like diversification, efficient frontiers, and the Capital Asset Pricing Model (CAPM). They explore different portfolio construction techniques, such as active and passive management strategies, and learn how to measure and manage portfolio risk. The course often covers various asset allocation approaches, considering factors like investor risk tolerance, investment horizon, and market conditions. Students are typically tasked with building and managing a hypothetical investment portfolio, applying the concepts learned in class to real-world scenarios.

A key component of Finance 722 is the exploration of fixed-income securities. Students learn about bond valuation, yield curve analysis, and the factors that influence interest rates. They examine various types of bonds, including government bonds, corporate bonds, and mortgage-backed securities, understanding the unique risks and opportunities associated with each. Credit risk analysis is also often covered, teaching students how to assess the creditworthiness of issuers and the potential for default.

Furthermore, Finance 722 often touches upon derivative securities, such as options and futures. Students are introduced to the basics of options pricing models, including the Black-Scholes model, and learn how derivatives can be used for hedging, speculation, and arbitrage. The complexities of futures markets are also explored, including the mechanics of contract trading, margin requirements, and the use of futures for risk management.

Instructors often integrate real-world case studies and guest lectures from industry professionals to provide students with a practical perspective on the investment landscape. Students are typically encouraged to stay abreast of current market trends and events, using financial news and data resources to inform their analyses and investment decisions. Successful completion of Finance 722 equips students with a strong foundation in investment principles, preparing them for careers in investment banking, asset management, financial analysis, and related fields.