printer friendly pageFINANCE 342: Financial Markets and the Macro Economy
This course addresses the interaction between financial markets and the macro economy. First, we will focus on the role and targets of the Federal Reserve Bank (Fed), the conduct of monetary policy, and the determination of interest rates. We further provide an overview of the instruments of the money market and their valuation, such as federal funds, commercial paper and treasury bills. We then discuss the role of financial institutions, the importance of regulation and the regulator's response to financial crises, followed by a detailed discussion of the major financial crises of the past century. The last part of the course will address the interaction between stock markets and the macro economy, including the countercyclical behavior of expected stock returns and how macroeconomic variables relate to the cross-section of stock returns.
Terms: Win
| Units: 4
Instructors:
Binsbergen, J. (PI)
FINANCE 346: Institutional Money Management
The object of this course is to study the money management industry from the perspective of the user --- an investor who wants to invest money. This course will study the main components of the money management industry: mutual funds, hedge funds, private equity funds and venture capital funds. It will also examine important users of the industry such as non profits, endowments and defined benefit pension funds. The emphasis of the course will not be on how fund managers make money, but rather on how the industry is organized, how managerial skill is assessed, how compensation is determined, and how economic rents are divided between managers and investors. The course will explore how competitive market forces interact with managerial skill and other market frictions to give rise to the observed organization of the industry.
Terms: Spr
| Units: 4
Instructors:
Berk, J. (PI)
FINANCE 350: Corporate Financial Modeling
The course will take the perspective of a mid-level manager or decision-maker who is responsible for collecting, analyzing, and utilizing financial information in the context of a major transaction. The class will integrate theories presented throughout courses in the core, particularly accounting and finance. In addition to providing an important context for application of these theories, the seminar will also incorporate various methodologies that will enhance a manager's ability to develop and review financial models. Students will work on a series of cases and build models that can be used for earnings and pro-forma financial statement forecasts, valuation, the assessment of financing needs, merger analysis, and LBO evaluation. Students will also gain experience presenting financial models and critically assessing them. By the conclusion of the course, students will develop the skills to construct complex financial models and the logical frameworks to utilize them for various organizational applications.
Terms: Spr
| Units: 4
Instructors:
DeMarzo, P. (PI)
FINANCE 390: Individual Research (ACCT 390, GSBGEN 390, HRMGT 390, MGTECON 390, MKTG 390, OB 390, OIT 390, POLECON 390, STRAMGT 390)
Need approval from sponsoring faculty member and GSB Registrar.
Last offered: Autumn 2007
| Repeatable
3 times
(up to 8 units total)
FINANCE 587: Private Equity - Understanding the Deal
This 2 unit elective in the MBA Program is an analytical review and simulation of a private equity transaction from the viewpoint of the private equity partnership. The course looks at all aspects of a "deal" and may be of interest to five groups of students: (i) students who may be interested in working in private equity as a career; (ii) students who plan to be employed by operating companies that are owned by private equity firms; (iii) students who may invest in private equity partnerships as a limited partner; (iv) students who find private equity to be an interesting part of the financial community in general (v) students who expect to participate in corporate business development or mergers and acquisitions. The course will meet for nine classes, most for a duration of 90 minutes. Two classes will be replaced by team presentations to mock investment review committees.
Terms: Spr
| Units: 2
Instructors:
Parker, G. (PI)
;
Lieberthal, G. (SI)
FINANCE 620: Financial Markets I
This course is an introductory PhD level course in theoretical financial economics, with an emphasis on the basic theories of asset pricing. We being by dealing with individual choices under uncertainty, including expected utility theory, risk aversion, stochastic dominance, and two-period consumption-portfolio problems. We then move on to equilibrium pricing theories, including implications of no arbitrage and stochastic discount factor, risk sharing, aggregation, and consumption-based pricing in complete markets, mean-variance efficiency and the Capital Asset Pricing Model, and the Arbitrage Pricing Theory. We also explore the relation between these various pricing theories. We will then explore models of pricing and portfolio choice in a multi-period setting.
Terms: Aut
| Units: 4
Instructors:
Grenadier, S. (PI)
FINANCE 621: Financial Markets II
This course continues F620 in covering some of the main concepts in asset pricing. Among the topics are: (i) Dynamic asset pricing models in discrete and continuous time (i) Rational Expectation models and their foundation (iii) strategic trading models.
Terms: Spr
| Units: 4
Instructors:
Kremer, I. (PI)
FINANCE 622: Dynamic Asset Pricing Theory
This course is an introduction to multiperiod models in finance, mainly pertaining to optimal portfolio choice and asset pricing. The course begins with discrete-time models for portfolio choice and security prices, and then moves to a continuous-time setting. The topics then covered include the Black-Scholes model of asset pricing and some of its extensions, models of the term structure of interest rates, valuation of corporate securities, portfolio choice in continuous-time settings, and finally, general-equilibrium asset pricing models. Students should have had some previous exposure to general equilibrium theory and some basic courses in investments. Strong backgrounds in calculus, linear algebra, and probability theory are recommended. Problem assignments are frequent and, for most students, demanding. Prerequisite: F620 or permission of instructor.
Terms: Aut
| Units: 4
Instructors:
Duffie, D. (PI)
FINANCE 624: Corporate Finance Theory
This course considers a wide range of topics in theoretical corporate finance (broadly interpreted). Topics include capital structure decisions, agency conflicts in the firm, dividend policy, security design, optimal financial contracting, the theory of the firm, the market for corporate control, and banking and financial intermediation, among others. The primary focus is on how asymmetric information, agency conflicts, strategic interactions, and incomplete contracting affect corporate financial decision-making. The course aims both to familiarize students with influential papers and current research, and to promote new research ideas in the area.
Terms: Spr
| Units: 4
Instructors:
Zwiebel, J. (PI)
FINANCE 625: Empirical Finance
This course is an introduction to empirical research in finance. The focus of the course is on applications of econometric methods in finance. We cover applications of time-series (macro) econometrics (much of asset pricing), but also some key issues in panel data (micro) econometrics (mostly corporate finance). Topics include tests of asset pricing models, return predictability in time-series and cross-section, empirical studies of asset market imperfections, studies of individual and professional investor behavior, and identification and specification issues in empirical corporate finance. The aim is to familiarize students with essential econometric methods and with important empirical facts and areas of current research interest.
Terms: Spr
| Units: 4
Instructors:
Nagel, S. (PI)
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