Describe a business cycle, and explain what is meant by leading, coincident, and lagging indicators.

Describe the tools of fiscal policy and how they work.

Describe the tools of monetary policy and how they work.

Describe the goals and the problems in implementing fiscal and monetary policy.

Describe the life-cycle of an industry.

Interpret a balance sheet, an income statement, and a statement of cash flows.

Analyze a company with respect to its liquidity, use of financial leverage, and profitability.

Analyze a company with respect to its activity and other ratios, including the use of a Du Pont analysis.

Describe how the optimal portfolio for an investor is the tangency between the efficient frontier and the highest possible indifference curve.

Show why an investor would prefer as low a correlation coefficient as possible for a two-security portfolio.