Asee peer logo

Project based learning in engineering economics: Teaching advanced topics using a stock price prediction modeling

Download Paper |

Conference

2013 ASEE Annual Conference & Exposition

Location

Atlanta, Georgia

Publication Date

June 23, 2013

Start Date

June 23, 2013

End Date

June 26, 2013

ISSN

2153-5965

Conference Session

Engineering Economy Division Technical Session

Tagged Division

Engineering Economy

Page Count

14

Page Numbers

23.991.1 - 23.991.14

DOI

10.18260/1-2--22376

Permanent URL

https://peer.asee.org/22376

Download Count

457

Request a correction

Paper Authors

author page

Lizabeth T Schlemer California Polytechnic State University

Download Paper |

Abstract

Project  based  learning  in  engineering  economics:  Teaching  advanced    topics  using  a  stock  price  prediction  modeling    Abstract:  An  advanced  engineering  economics  class  is  taught  at  University  X.  The  topics  include  a  thorough  review  of  time  value  of  money  and  investment  evaluation,  inflation,  risk  and  return,  financing  decisions,  corporate  investment  strategies,  risk  analysis  and  decisions  incorporating  non-­‐monetary  considerations.  Historically  this  course  was  taught  using  an  advanced  text  where  the  topics  are  covered  sequentially.  A  redesign  of  the  course  now  includes  the  construction  of  a  stock  price  prediction  model  for  a  company  of  the  student’s  choice.  Through  the  model,  the  topics  are  covered  and  discussed  in  the  context  of  the  large  model-­‐building  project.  For  instance,  inflation  is  discussed  when  students  collect  historical  data  on  the  company’s  performance  and  use  that  data  to  forecast  into  the  future.    Issues  of  discount  rate  and  variability  in  inflation  become  evident  as  students  wrestle  with  the  past  and  the  future.  Another  example  is  the  concept  of  risk  and  return  and  the  capital  asset  pricing  model.  Students  do  understand  how  the  required  return  for  equity  holders  is  not  only  dependent  on  the  underlying  risk  of  the  assets,  but  on  the  leverage  of  the  firm  also.  Given  varying  levels  of  debt,  the  relative  stability  of  the  required  return  on  the  assets  (as  opposed  to  the  equity)  emerges  as  a  better  analysis  tool.      This  method  has  been  used  for  two  consecutive  years  with  good  results.  This  paper  will  discuss  this  project-­‐based  method  in  detail  and  give  examples  of  instructional  pedagogy.  In  addition,  student  feedback  both  qualitative  and  from  the  Course  Valuing  Inventory  (Nehari,  et  al)  survey  instrument  will  be  included  and  evaluated.        

Schlemer, L. T. (2013, June), Project based learning in engineering economics: Teaching advanced topics using a stock price prediction modeling Paper presented at 2013 ASEE Annual Conference & Exposition, Atlanta, Georgia. 10.18260/1-2--22376

ASEE holds the copyright on this document. It may be read by the public free of charge. Authors may archive their work on personal websites or in institutional repositories with the following citation: © 2013 American Society for Engineering Education. Other scholars may excerpt or quote from these materials with the same citation. When excerpting or quoting from Conference Proceedings, authors should, in addition to noting the ASEE copyright, list all the original authors and their institutions and name the host city of the conference. - Last updated April 1, 2015