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Foundations of Modern Finance II

Learn fundamental principles of modern finance, including valuation models, methods for risk analysis, derivative instruments and investment management.

Foundations of Modern Finance II

There is one session available:

13,585 already enrolled! After a course session ends, it will be archived.
Starts Jan 5, 2022
Ends Mar 29, 2022
Estimated 12 weeks
10–14 hours per week
Instructor-paced
Instructor-led on a course schedule
Free
Optional upgrade available

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.

At a glance

  • Institution: MITx
  • Subject: Economics & Finance
  • Level: Advanced
  • Prerequisites:
    • 15.415.1x Foundations of Modern Finance I
    • Probability and Statistics (undergraduate)
    • Calculus (undergraduate)
    • Linear algebra (undergraduate)
  • Language: English
  • Video Transcript: English
  • Associated programs:

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

About the instructors

Who can take this course?

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