Foundations of Modern Finance I
A mathematically rigorous framework to understand financial markets delivered with data-driven insights from MIT professors.
Foundations of Modern Finance I
A mathematically rigorous framework to understand financial markets delivered with data-driven insights from MIT professors.
This is a two-part course that provides a rigorous and comprehensive introduction to the fundamentals of modern finance and their applications to business challenges in valuation, investments, and corporate financial decisions under a unified framework.
What you'll learn
- Valuation of fixed income securities and common stocks
- Risk analysis, the Arbitrage Pricing Theory (APT), and the Efficient Market Hypothesis
- Introduction to corporate finance and capital budgeting
- Valuation of derivative securities
- Portfolio theory and the Capital Asset Pricing Model (CAPM)
- Corporate financial decisions
- Real options, capital structure, payout policy, corporate bonds; and
- Interaction between investment and financing decisions
Prerequisites
Calculus (required)
Linear Algebra (required)
Probability and Statistics (suggested)
Meet your instructors
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Nippon Telegraph & Telephone Professor of Management and Professor of Finance -
Executive Director of MicroMasters Program in Finance -
Mizuho Financial Group Professor and a Professor of Finance
Leonid Kogan
Leonid Kogan
Nippon Telegraph & Telephone Professor of Management and Professor of Finance
Leonid Kogan is the Nippon Telegraph and Telephone Professor of Management and a Professor of Finance at the MIT Sloan School of Management and a Research Associate at the National Bureau of Economic Research. His research covers theoretical and empirical topics in capital markets. Dr. Kogan has published extensively in leading academic journals, including the Journal of Finance, the Journal of Financial Economics, Review of Financial Studies, the Journal of Political Economy, and Operations Research. Dr. Kogan has won several professional awards, including the 1998 Lehman Brothers Fellowship for Research Excellence in Finance for his work on the asset pricing implications of investment irreversibility; the 2004 FAME Research Prize and the 2006 Smith Breeden Prize for his work on the price impact and survival of irrational traders; the 2007 Crowell Memorial Prize for his work on output durability and stock returns; the 2013 Crowell Memorial Prize for his work on technological innovation and growth; the 2013 Whitebox Advisors Award for his work on the price impact of mutual fund trading and timing of SEOs; and the 2014 Amundi Smith Breeden Prize for his work on the effect of technology shocks on stock prices. He received his M.Sc. degree in mechanics and applied mathematics from the Moscow State University, a Ph.D. in mechanics from Cornell University, and a Ph.D. degree in finance from MIT.
Egor Matveyev
Egor Matveyev
Executive Director of MicroMasters Program in Finance
Egor Matveyev is an Executive Director of the MicroMasters Program in Finance and a Senior Lecturer in Finance at the MIT Sloan School of Management.
His research interests are in the fields of corporate finance, organizational economics, and corporate governance. Matveyev’s work has studied corporate director labor markets, the impact of management teams and CEOs on firm value and performance, and the challenges investors face in valuing firms’ investment options. At MIT Sloan, he teaches 15.401 Managerial Finance and 15.434 Advanced Corporate Finance.
Matveyev holds an MA in Economics from the New Economic School in Moscow and a PhD in Finance from the University of Rochester.
Current Research Focus: Matveyev’s current research focus is corporate finance, with a particular interest in the role of top corporate executives in creating firm value and its implications for executive compensation and the design of corporate governance systems. Current research projects include measuring the value of CEOs, allocation of executive skill across firms, and the role of non-pay job characteristics in the executive and director labor markets.
Jiang Wang
Jiang Wang
Mizuho Financial Group Professor and a Professor of Finance
Jiang Wang is the Mizuho Financial Group Professor and a Professor of Finance at the MIT Sloan School of Management.Wang’s research focuses on the pricing of financial assets and investment and risk management. He is currently working on the characterization of financial risks, the impact of liquidity on asset prices, optimal trading execution, and optimal portfolio choices. He also is doing research on financial development in China.
Wang holds a BS in physics from Nanjing University, a PhD in theoretical physics from the University of Pennsylvania, and a PhD in finance from the Wharton School, University of Pennsylvania.
Current Research Focus: Wang’s current research focuses on market frictions, market liquidity and their impact on trading strategies, asset pricing, risk management, and market stability. Recently, he also conducted research on the Chinese capital market and its development. Current projects include high frequency trading and market efficiency, optimal intervention policy during liquidity crisis, optimal portfolio execution, systemic risk and market liquidity, and Chinese Capital Market Yearbook and database.