Curriculum

Prepare for success in a changing world

The MSc Finance is a 16-month, full-time program delivered over four terms. The program offers two areas of specialization: investment management and risk management. Candidates elect to complete three courses in one of the two streams.

The investment stream focuses on financial instruments, financial markets, and finance theory. The risk management stream allows students to delve deeper into credit, market, and operational risk. Both streams share the same core courses and all students are exposed to the fundamental finance theory and practice.

You also have the opportunity to join the SIAS Fund team during of the program to add an extra practical component to your learning experience.

Orientation - August

Orientation will begin on August 21, 2017 for the program, including preparatory courses on essential elements of mathematics and statistics.

Mathematics for Financial Economics

Review the mathematical tools essential for the study of finance, including linear algebra, differential equations and optimization.

Statistics for Financial Economics

Review elements of probability and statistics employed in finance, including probability models, inference and basic time series analysis.

Semester 1 - Fall

Financial Modeling Tools

Get an introduction to commonly used software programming languages used for mathematical analysis, with a focus on VBA (Visual Basic for Applications) and MATLAB. Learn through hands-on laboratory sessions and practice problems drawn from topics such as linear regression, asset allocation and option pricing.

Financial Economics I

Delve into the idea of “no-arbitrage”—one of the most important concepts defining Financial Economics. This course covers:

  • different situations in which no-arbitrage is used for pricing of securities
  • no-arbitrage in developing the models and results generated by portfolio theory
  • theories on capital markets and corporate finance, as well as their implications.

Derivative Securities I

Gain an understanding of derivative securities, such as options, forward contracts, futures contracts and swaps. The course focuses mainly on hedging, replication, and pricing.

Equity Security Analysis and Portfolio Management I

Learn about the valuation of equity securities, including company and industry analysis, financial statement analysis and valuation models.

Fixed Income Security Analysis and Portfolio Management

Review the current models and techniques required to value, analyze and risk manage portfolios of fixed income instruments and their derivatives. Develop a set of tools to deal with realistic problems.

Optional: SIAS

Semester 2 – Spring

Financial Econometrics

Learn about the econometric skills and tools commonly needed in the financial industry. You will focus on time-series methods such as auto-regressive and moving average processes (ARIMA), and generalized auto-regressive conditional heteroscedasticity models (GARCH).

Investment Management

This introductory course covers portfolio management, equity valuation, debt valuation, and performance and risk measurement.

Structures and Numerical Methods in Risk Management

Study the underlying mathematics and software implementation of the fundamental analytic methods used to price equity and fixed-income derivatives. You will derive the methods theoretically and then implement them in MATLAB.

Risk Management Stream Courses:

Derivative Securities II

Learn about the use of analytical methods for valuation, replication, and hedging. This course builds upon the empirical and numerical methods covered in other courses, and covers mathematical and finance topics.

Enterprise Risk Management

Gain a thorough overview of the enterprise risk management practices. Begin with a risk assessment framework and then apply it through decision-making exercises within a case-based context. Learn enterprise risk management best practices, including risk architecture, risk communication, and disclosure within the organization.

OR

Investment Management Stream Courses:

Portfolio Theory and Asset Pricing

The course covers five main topics: portfolio theory, asset pricing, market efficiency, performance measurement, and behavioral finance.

Equity Security Analysis and Portfolio Management II

Study advanced valuation of equity securities, including company and industry analysis, financial statement analysis, and valuation models.

Optional: SIAS

Semester 3 – Summer

Financial Economics II

Get an introduction to the theory of corporate finance. Students review relevant equilibrium concepts and solution techniques in game theory, before studying selected topics in corporate finance.

Financial Statement Analysis

Gain an understanding of the linkages between financial statements, such as annual reports and prospectuses—including the three principal financial statements (balance sheet, income statement and cash flow statement)—and how to extract useful information about a company from them.

Risk Management Stream Course:

Credit Risk Management

Gain a solid knowledge and understanding of fundamental credit risk concepts and master the basics of quantitative modelling of credit risk, including:

  • the fundamentals and concepts of CR measurement understanding, modelling and management
  • quantitative modeling techniques, issues and choices.

OR

Investment Management Stream Courses:

Strategic Asset Allocation

Develop a good understanding of the theoretical and practical issues relating to the setting of investment policy, as well as mean-variance software. Students analyze investors’ return objectives, risk tolerance, investment horizon, tax considerations, liquidity needs, and other unique circumstances.

Optional: SIAS

Semester 4 – Fall

Market Risk Management

Study the fundamentals of market risk of traded financial products (basic interest rate products, equities and options) from the perspective of a trader and a risk manager. You will gain a clear perspective of how trading and risk control work together in the capital markets.

Ethics

Forge critical philosophical thinking around finance and finance practices. Students discuss, classical and modern libertarianism, contractarianism (social contract theory), deontology, consequentialism (utilitarianism), and virtue ethics. In each case, students will apply these schools of thought to concrete finance situations.

Final Project

Complete a supervised research project in the areas of risk management, investment management or a closely related field of inquiry.

Optional: SIAS