the Office of Management and Budget website

Econ 301 Week 2 Discussions

Econ 301 #1

1) Go to the Office of Management and Budget website (see Course Schedule Week 2) and click on Historical Tables (1.1); select the Receipts (column B), Outlays (column C), and Deficit (column D) for 2004 through 2014, graph it in Excel. and attach it.

2) Analyze why receipts are going up or down?

3) Analyze why outlays are going up or down?

4) Analyze why deficit is going up or down?

Econ 301 #2

You have learned from Week 2- Topic 1 that the U.S. has been experiencing budget deficits.

1) What are the impacts of chronic U.S. budget deficits? (between 150 and 200 words).

2) Discuss how Democrats or Republicans approach to resolve the budget deficits? [Take one partisan approach only] (between 200 and 250 words).

Finc 340 Week 2

**Assigned Reading is Fundamentals of Investing- Chapter 4, “Risk and Return” , Chapter 4A, “The Time Value of Money” ,Chapter 5, “Risk Portfolio Concepts” Chapter 2 “The Financial System” INVESTMENTS: AN INTRODUCTION by Dr. AP Faure ISBN: 978-87-403-0604- 1st edition**

Week 2- Discussion 2

1- In your opinion, how would you explain the concept of risk and the risk-return tradeoff? What happens to the required return as risk increases. Substantiate your argument with an example. Which of the following attitudes do you have: risk indifferent, risk averse or risk seeking? Why? Which of these attitudes toward risk best describes most investors?

2- What is time value of money in terms of present and future value? Explain why an investor should be able to earn a positive return. Give an example. What is your reasoning while understanding traditional portfolio management? Discuss at least two reasons why investors may like to invest in well established companies? Are you one of those investors?

3- How would you define beta? Is it an accurate measure to hedge the risk in investments? Also, how can you reconcile the modern traditional and modern portfolio approaches?

4- Operation of Markets – Explain what you know about how the stock market and the bond market work? When you see, hear, and read news about the financial markets, do you understand what is being discussed – if you do, explain what information you most desire? If not, what do you plan to do about it?

5- Use Stock Screeners – Stock Screeners are useful tools for some investors in selecting specific investments. Use some stock screeners to help identify stocks for your portfolio management project. Present and discuss the criteria that you used? Why did you like, or not like, the screeners?

6- . Most Important Things Learned – What are the most important things that you learned from the study of this week’s readings and assignments?