FIN403 Investment Arrangements, Explain the risk structure of interest

FIN 403 Saudi Electronic University Investment Arrangements Questions

4.1 Learning Outcomes:

Explain the risk structure of interest rates.

Differentiate between the expectations theory and the market segmentation theory of the term structure.

Explain the liquidity premium theory.

 4.2 Action Required: Read the case : The Subprime Collapse and the Baa-Treasury Spread in chapter 5

4.3 Test your Knowledge (Question): Discuss about the impact on Baa-Treasury Spread.

Second interactive activity :

2.1 Learning Outcomes:

Discuss the key considerations in setting investment objectives.

Describe the relationship of risk and return.

Explain the three factors that comprise the required rate of return for an investor.

 2.2 Action Required:

To access the link just click on the link (If not working, Copy it and paste in the URL) https://www.sec.gov/

2.3 Test your Knowledge (Question)

 What is the mission of the SEC?

 What information and advice does the SEC offer to beginning investors? 3th Interactive activity

3.1 Learning Outcomes:

Explain the role that the investment banker plays in the distribution of securities.

Discuss the differences between organized exchanges and over-the-counter markets.

 Discuss the future outlook for the capital markets.

3.2 Action Required:

 To access the link just click on the link (If not working, copy it and paste in the URL) https://www.saudiexchange.sa/wps/portal/tadawul/knowledge-center/about/CapitalMarket-Overview?locale=en

3.3 Test your Knowledge (Question):

What is the purpose of Capital Market? Is Saudi Arabia is good for Investment explain with examples. 4th Interactive activity

4.1 Learning Outcomes: 

Explain the phases of the industry life cycle. Describe the various economic structures of industries. Explain the concept of rotational investing in which the investor shifts emphasis among industries during various phases of the business cycle. Explain the related concepts of risk and return. Explain techniques for forecasting earnings per share.

 4.2 Action Required: 

To access the link just click on the link (If not working, copy it and paste in the URL) https://www.investopedia.com/articles/basics/03/050203.asp

4.3 Test your Knowledge (Question):

Explain the Investment Risk Pyramid and the factors that influence investors’ risk preferences? What are the types of investments that fit into each of the risk categories ?