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MITx: 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
12 weeks
10–14 hours per week
Instructor-led on a course schedule
Enrollment closed
Future dates to be announced

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.

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)
  • Associated programs:
  • Language: English
  • Video Transcript: English
  • Associated skills:Capital Structures, Decision Making, Investments, Stocks (Finance), Planning, Securities (Finance), Financial Planning, Finance, Risk Analysis, Derivatives, Chartered Financial Analyst, Financial Asset, Valuation Models

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

Who can take this course?

Unfortunately, learners residing in 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.

This course is part ofFinance MicroMasters Program

Learn more 
Expert instruction
6 graduate-level courses
1 year 4 months
10 - 14 hours per week

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