About the Course
This course provides a rigorous introduction to the fundamentals of modern financial analysis and applications to business challenges in valuation, risk analysis, corporate investment decisions, and basic security analysis and investment management. The four major sections of the course are:
(A) an introduction to the financial system, the financial challenges firms and households face, and the principles of modern finance in tackling these challenges;
(B) valuation of stocks, bonds, forwards, futures, and options;
(C) methods for incorporating risk analysis into valuation models, including portfolio theory, mean-variance optimization, and the Capital Asset Pricing Model; and
(D) applications to corporate financial decisions, including capital budgeting and real options.
For a more detailed list of topics covered in this course, refer to the Course Outline by Topic (PDF). The chapters listed in the outline refer to the main course textbook.
About the Professor
Andrew Wen-Chuan Lo is the Charles E. and Susan T. Harris Professor of Finance at the MIT Sloan School of Management. He is a leading authority on hedge funds and financial engineering; he proposed the adaptive market hypothesis. Lo is the author of several academic articles in Finance and Financial economics.
The Massachusetts Institute of Technology (MIT), founded in 1861, is located in Cambridge, Massachusetts, and is one of the foremost U.S. institutions in science and technology. It is comprised of five schools and one college, including the renowned School of Engineering and Sloan School of Management, offering Bachelor’s, Master’s, and [...]View Full Profile