• Length:
    12 Weeks
  • Effort:
    10–14 hours per week
  • Price:

    FREE
    Add a Verified Certificate for $450 USD

  • Institution
  • Subject:
  • Level:
    Advanced
  • Language:
    English
  • Video Transcript:
    English
  • Course Type:
    Instructor-led on a course schedule

Associated Programs:

Prerequisites

  • 15.415.1x Foundations of Modern Finance I
  • Probability and Statistics (undergraduate)
  • Calculus (undergraduate)
  • Linear algebra (undergraduate)

About this course

Skip About this course

Many of the most important financial decisions in business are done under uncertainty. This is the second course in the Foundations of Modern Finance series of courses, as part of the MicroMasters® Program in Finance. It provides you with the science behind making financial decisions under uncertainty.

We build on the core set of basic principles taught in the first part, and continue to develop a powerful and general framework for making financial decisions in business and in personal financial planning. We introduce financial derivative securities, and their valuation models, discuss the capital structure decision of firms, and explore the interaction between investing and financing.

At the center of financial decision making is the valuation problem. How much value does a business investment create? What is a fair price to pay for a financial asset? We develop models and analytics for measuring risk and for valuing financial assets. We apply valuation models to financial securities, including stocks and bonds, and to project valuation and capital budgeting.

The course is excellent preparation for anyone planning to take the CFA exams.

What you'll learn

Skip What you'll learn
  • Valuation of futures, forward, and options
  • Portfolio optimization and the capital asset pricing model (CAPM)
  • Capital structure decisions within the firm
  • The interaction between investing and financing
  • Forwards and Futures
  • Options
  • Portfolio Theory
  • Capital Asset Pricing Model (CAPM)
  • Capital Budgeting and Real Options
  • Financing/Capital Structure
  • Interaction between Investing and Financing
  • Payout and Risk Management

Meet your instructors

Leonid Kogan
Nippon Telegraph & Telephone Professor of Management and a Professor of Finance
Massachusetts Institute of Technology
Jiang Wang
Mizuho Financial Group Professor and a Professor of Finance, Sloan School of Management
Massachusetts Institute of Technology
Egor Matveyev
Senior Lecturer and Research Scientist in Finance, Sloan School of Management
Massachusetts Institute of Technology

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Who can take this course?

Unfortunately, learners from one or more of the following countries or regions will not be able to register for this course: Iran, Cuba and the Crimea region of Ukraine. While edX has sought licenses from the U.S. Office of Foreign Assets Control (OFAC) to offer our courses to learners in these countries and regions, the licenses we have received are not broad enough to allow us to offer this course in all locations. EdX truly regrets that U.S. sanctions prevent us from offering all of our courses to everyone, no matter where they live.