The M.S. in Finance program is designed to meet the varied needs of finance professionals in public and private sectors who wish to continue in their careers while pursuing an advanced study specializing in the area of financial economics. The main objective of the program is providing a thorough foundation in financial economics and enhancing the applied financial analysis and research skills by delivering state-of-the-art techniques and approaches. In addition, the program is an ideal preparation for participants who plan to pursue a Ph.D. degree in finance.
Students are first introduced to the general framework of financial theories and concepts in Corporate Finance, Financial Markets and Institutions, and Macroeconomics. Knowledge and skills acquired in the initial courses allow for advanced discussions in Investments, Financial Derivatives, Advanced Corporate Finance and Fixed Income. Finally, students apply their cumulative knowledge in case-oriented courses such as Bank Financial Management, Risk Management or Valuation and Corporate Restructuring.
MGEC 502 Macroeconomic Analysis for Management
Effects of macroeconomic policies such as fiscal, monetary, and foreign exchange on business. Causes and consequences of inflation and unemployment. Economic growth and technological progress. Open economy, international flow of goods and capital, exchange rates.
MFIN 510 Financial Econometrics
Econometric tools used in financial research and decision making. Topics covered include simple linear and multivariate regression, nonlinear least squares, generalized least squares, and panel data estimation. Emphasis placed on the application of regression techniques to problems in financial economics including conditional volatility estimation, dynamic asset allocation in a bivariate GARCH framework, estimation of conditional risk measures such as value-at-risk and expected shortfall, and pricing of financial assets and derivatives based on time-series econometrics.
MFIN 513 Corporate Finance
An introduction to the fundamental financial issues of the corporation. Topics covered include basic concepts of debt and equity sources of financing and valuation; capital budgeting methods; cash flow forecasting and risk analysis; and the cost of capital. The course introduces a rigorous analysis of firm's capital structure and dividend policies, and supplements this with an overview of the real-world considerations, constraints and risks facing managers.
MFIN 514 Financial Institutions and Capital Markets
Differences between banks, other financial intermediaries, and securities markets as sources of corporate financing; unique aspects of banks as financial intermediaries; bank contracts, their pricing and management with respect to interest rates, inflation and credit risk; measures of interest rate risk and hedging techniques; securitization of bank assets; reasons for the rapidly growing importance of non-bank sources of funds for corporations, and implications for the future of the banking industry.
MFIN 515 Investment Management
An analysis of capital markets and financial instruments. Topics include fundamental principles and theories of financial asset pricing, asset valuation, risk measurement, risk-return tradeoff, and portfolio design, as well as an introduction to the main financial markets, their organization and functional characteristics.
MFIN 516 Portfolio Theory
Techniques available to assist the investor in making the risk/return tradeoff. Topics covered include relevant theories and empirical evidence pertaining to the construction, management and evaluation of securities portfolios such as practical aspects of portfolio management, dynamic asset allocation and optimal portfolio selection.
MFIN 520 Advanced Corporate Finance
An intensive analysis of the effects of various corporate financial policy decisions on the value of the firm; effects of taxes, bankruptcy costs and agency costs on corporate financial decisions; the interrelation of financing policy with executive compensation, mergers and acquisitions, leasing, hedging and payout policies.
MFIN 525 Derivative Securities
Pricing of derivative securities such as futures and options contracts and swaps, as well as securities that contain embedded options; costs and benefits of using derivative securities in risk management strategies; portfolio policies including static and dynamic hedging; applications from commodity, equity and bond markets.
MFIN 526 Fixed Income Securities
Application of a variety of techniques from the theory of capital markets to the analysis of fixed income securities. Topics covered include describing fixed income securities and markets; developing tools for pricing fixed income securities and interest rate sensitive claims; traditional bond and term structure concepts including fixed income derivatives and interest rate modeling; and measuring interest rate risk of bond portfolios.
MFIN 527 Financial Modeling
Financial modeling and pricing of exotic options such as interest rate caps, interest rate floors, look-back, knock-in, knock-out, and volatility options. The long-short portfolio formation is discussed in detail for equity portfolios. Standard anomalies in empirical asset pricing (e.g., size, book-to-price, earnings-to-price, momentum, liquidity, idiosyncratic volatility, post-earnings announcement drift) are used to generate profitable trading strategies.
MFIN 528 Risk Management
A rigorous introduction to the complex problems of risk measurement and management in financial institutions. The course surveys the major types of financial institutions and analyzes in depth the major risks facing each type. These risks include equity, interest rate, currency, and credit risk, among others. The role of stochastic volatility, conditional skewness and kurtosis is discussed within the stock and interest rate option framework. The course presents alternative approaches to estimating value at risk, expected shortfall, and tail risk.
MFIN 530 Valuation and Corporate Restructuring
Creating value through corporate restructuring and examining how various types of restructurings impact creditors, shareholders, employees and other stakeholders. Topics covered include quantitative background on corporate valuation methodologies; application of these methodologies to value creation through restructurings such as mergers and acquisitions, bankruptcy reorganizations and workouts, corporate spin-offs, targeted stock offerings, and employee buyouts.