![]() ![]() Along the way, we will address the standard argument that smart, profit-seeing agents can correct any distortions caused by irrational investors. In this course, we will survey the evidence and use psychology to guide alternative theories of financial markets. There is an abundance of evidence suggesting that the standard economic paradigm - rational agents in an efficient market - does not adequately describe behavior in financial markets. We emphasize practical considerations of implementing strategies using derivatives as tools, especially when no-arbitrage conditions do not hold.įNCE7390 - Behavioral Finance (Course Syllabus) The course covers a wide range of applications, including the use of derivatives in asset management, the valuation of corporate securities such as stocks and corporate bonds with embedded options, interest rate and credit derivatives, as well as crude oil derivatives. In terms of methodologies, we apply the non-arbitrage principle and the law of one price to dynamic models through three different approaches: the binomial tree model, the Black-Scholes-Merton option pricing model, and the simulation-based risk neutral pricing approach. The main objective of this course is build intuition and skills on (1) pricing and hedging of derivative securities, and (2) using them for investment and risk management. Financial derivatives serve as building blocks to understand broad classes of financial problems, such as complex asset portfolios, strategic corporate decisions, and stages in venture capital investing. This course covers one of the most exciting and fundamental areas in finance. These include investment decision making under uncertainty, cost of capital, capital structure, pricing of selected financial instruments and corporate liabilities, and dividend policy.įNCE7170 - Financial Derivatives (Course Syllabus) Other areas that are covered in FNCE 6110 are covered more in depth and more rigorously in FNCE 7030. These may include leasing, mergers and acquisitions, corporate reorganizations, financial planning, and working capital management, and some other selected topics. Some areas of financial management not covered in FNCE 6110 are covered in FNCE 7030. This course serves as an extension of FNCE 6110. The course reviews the theory and empirical evidence related to the investment and financing policies of the firm and attempts to develop decision-making ability in these areas. (Formerly FNCE 726) The objective of this course is to study the major decision-making areas of managerial finance and some selected topics in financial theory. FNCE7030 - Advanced Corp Finance (Course Syllabus)
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