HS 328 Video: Investments

Identify the important features of each of the major security laws

as they affect investors.

Explain why the combination of two risky securities can produce a portfolio with less risk than either separately, and compute both the expected rate of return and the standard deviation for any two-security portfolio.

Describe a multifactor model.

Describe the term structure of interest rates, and explain the investment implications of the term structure.

HS 328 Course Introduction

Construct a profit function for combinations of options and stocks.

Explain the basic model of personal taxation, compute a tax liability, and identify the relevant marginal tax rate.

Compute the cost basis or adjusted cost basis of an investment.

Determine the tax consequences of various equity investments, including the treatment of capital gains and losses as well as qualified and nonqualified dividend income.