Students should after the course be able to answer questions like
- What investments should the investor make (the investor’s investment decision)?
- How do investors determine the price they are willing to pay for an office building?
To be able to answer these questions, one need to be able to:
- Identify and explain the basic steps in the investment process.
- Derive and understand the origin of the major formulas used in present value calculations.
- Evaluate different investment alternatives.
- Critically assess different investment criteria.
- Define and compute different return measures.
- Develop MS Excel spreadsheets for investment decision making.