2009-2010 Master's Program in Finance
Curriculum and Course Calendar

The graduate curriculum is a rigorous and intensive set of courses in financial economics that fosters analytical and quantitative expertise and leads to a Master of  Arts in Finance. The program uses a cohort design, in which students move through the same courses at the same time. Using cases and modules, coursework is designed partly to explore relevant ethical and organizational leadership issues. Please note that in order to keep pace with an evolving business environment, this curriculum is subject to change.

FIN 310
Financial Economics

FIN 410
Portfolio Management

FIN 320
Financial Econometrics

FIN 420
Asset Pricing and Derivatives

FIN 330
Corporate Financial Management

FIN 430
Economics, Strategy, and Organization

Fin 340
Investments

FIN 440
Advanced Accounting

Intensive Mathematics and Computing Seminar

The graduate year begins with a three-week lab course that provides an intensive review of the mathematics of finance, including calculus and matrix algebra, as well as an introduction to computing with various languages in a PC/Workstation computing environment. The session also includes networking opportunities and workshops to help students develop their presentation skills.

FIN 310: Financial Economics

This course is an introduction to key economic principles underlying corporate finance.  Topics include: game theory and applications; auctions; agency problems arising from separation of ownership and control; design of incentive-aligning compensation contracts; models of asymmetric infomration including signaling, moral hazard, adverse selection; control rights and corporate governance; capital structure and conflicts between equity-holders and bond-holders; stock issuance via IPO and SEO; and mergers and acquisitions.

FIN 320: Financial Econometrics

This course provides a graduate-level introduction to financial econometrics.  The main focus is on using and applying econometric techniques to analyze financial data and improve decision-making rather than deriving proofs or learning formulae.  We will work with prominent financial databases, and our analysis will employ leading econometric software.  The course also emphasizes the proper presentation of research results in written and oral form.

FIN 330: Corporate Financial Management

Corporate Financial Management is an advanced corporate finance course.  Corporate Finance (Econ 134 at CMC) or its equivalent is the prerequisite.  The theme of Corporate Financial Management is how to create value through financial, strategic and operating decisions, developing necessary financial tools, both theoretical and practical. 

The course introduces advanced valuation techniques , and explores the empirical difficulties and judgmental ambiguities inherent in applying the valuation process.  The course ends by exploring executive compensation, with a particular focus on equity-based compensation.  The course will be numerically and analytically intensive.

FIN 340: Investments

In FIN 340 we develop the financial bases of investment and portfolio management.  We will cover much of the material in the required text (Investments, 7th ed. Bodie, Kane, and Marcus) except chapters 1 through 4 (material you should know from previous courses) and the material on options and futures, which is in 'Asset Pricing and Derivatives', and the material on valuation which is in 'Corporate Financial Management'.  In particular, we will cover:

FIN 410: Portfolio Management

This advanced course provides students with the opportunity to develop a thorough understanding of the practice of asset management.  The course is organized around two themes.  First, understanding the return and risk factors of different securities.  We approach these topics by applying both risk-based asset pricing models and behavioral finance models.  Second, understanding the money management industry.  Topics include performnce evaluation, style analysis, alternative investments, managing trading costs, tracking error, and the behavior of money managers.  Students will learn skills and a critical thinking process regarding asset management practices throughout a variety of approaches, including interactive lectures, class discussions of select cases and cutting-edge academic research papers, and guest speakers from the asset management inductry.  Students gain an appreciation for, and experience in, the complexities of real-world asset management.

FIN 420: Asset Pricing and Derivatives

This is a specialized course in derivatives, a segment of the financial market that has become increasingly important over the past thirty years. The format of this course is primarily that of lecture, supplemented throughout with discussions of relevant concepts and applications. The focus of the course is the pricing of derivatives and risk management using derivatives. The first part of the course covers forwards, futures, and swaps, the second part discusses options and various pricing models, such as the binomial model and the Black-Scholes model, while the last part of the course covers advanced topics such as numerical methods, exotic options, interest rate derivatives, and credit derivatives.

The study of derivatives is inherently quantitative. There are many equations in almost every lecture. You should come with an open mind about the language of mathematics. You must be comfortable with basic probability, statistics, and calculus. In addition, I assume that you are familiar with a computer program that does statistical analysis and numerical simulation, such as Excel or Matlab.

FIN 430: Economics, Strategy, and Organization

This is a graduate course in the economics of competitive strategy.  The focus is on decision-making problems facing firm managers, including: choosing the scale and scope of the firm, evaluating the firm's competitive environment, strategically positioning the firm within the environment, selecting pricing and trade practices, and understanding the relationships between strategy and organizational decisions.  Besides exploring many examples of decision-making through cases, we will develop a formal analytical framework for thinking about strategic decisions based on recent developments in microeconomics, including transactions cost economics and game theory.

FIN 440: Advanced Accounting

The focus of this course is the connections between accounting analysis and issues in finance, including performance evaluation, cash flow analysis, pro forma construction, risk analysis, and valuation. This course assumes a working knowledge of Intermediate Accounting.