This course will develop your competence in important financial management concepts to understand that all business decisions involve some type of financial analysis. Coverage of the underlying principles required for an understanding of finance as it applies to business and corporations will be the focus. Key topics include time value of money, capital market theory and capital budgeting.
Category: GC in Financial Analysis
MGMT584: Derivatives and Risk Management
This course covers two main topics in finance: financial derivatives and risk management. The course provides an overview of the derivatives markets. It covers arbitrage, hedging, speculating, and other trading strategies. The course also teaches students how to price forward contracts, call and put options using discrete time and continuous time models for options. In particular, the course covers the binomial option pricing model and the Black-Scholes option pricing model. In addition to financial derivatives, the course also provides a comprehensive treatment of the theoretical concepts and modeling techniques of modern risk management. The course covers methods for market, credit, and operational risk modeling. Although the course draws on methods and techniques from financial economics and statistics, the focus is mainly practical. The objective is to equip students with relevant techniques to measure and manage risk in practice. (Prerequisite is either MGMT560 or BUSA523.)
Co-Requisites:
MGMT583: Finance Theory and Investments
This course is an introduction to finance theory. Students are expected to bring the background of an introductory course in statistics, linear algebra, and optimization. The course covers in depth the fundamental equilibrium models of price formation in finance; namely, Markowitz’s mean-variance portfolio theory, capital asset pricing model, arbitrage pricing theory, and factors models. Other topics include models of bond prices, yields, and managing portfolio bonds. In addition to mastering the theoretical foundations, the course adopts a hands-on practical approach that matches the theory with practical applications that are routinely performed in the finance profession. In particular, students will learn how the portfolio management process (PMP) is performed in practice. In addition to using real data on financial assets (from Bloomberg, Thomson Reuters, and other sources), students will also learn how to analyze financial statements, perform fundamental and technical analysis, and how to construct financial portfolios. (Prerequisite is either MGMT560 or BUSA523.)
Co-Requisites: