Oxford MSc Financial Economics
All students take core modules in corporate finance, asset pricing, financial econometrics, and economics. These modules are all carefully integrated: the economics and econometrics modules apply theories and methodologies to finance, and the finance modules provide the underlying economic principles of financial practice.
The asset pricing module covers the theory and practice of valuing claims to uncertain cash flows; for example, stocks and stock options, bonds and foreign-exchange instruments. The module covers standard material such as CAPM and the Black-Scholes formula, and some advanced material such as consumption-CAPM and pricing formulas for "exotic options". About half of the module is dedicated to the application of advanced statistical methods to the area of asset pricing and to practical work with real-world data.
Corporate finance studies the financing, valuation and corporate governance of firms. During this module, you will learn the fundamental principles of financial accounting, the valuation of firms' assets and the determinants of firms' financial structures. You will be taught the key components of firms' financial decisions and the operation of financial markets, including new issues of securities, debt, and dividend policy. You will learn about the relevance of different financial institutions to the financing of firms, the takeover process, corporate restructurings, and financial distress.
The module in financial econometrics provides students with a background in the fundamentals of empirical modelling and testing in finance. This will allow you to better understand crucial concepts like risk, evidence, and prediction.
Microeconomics is the study of how financial and commercial frameworks and conditions impact on individual situations and business units. During this module you will learn to apply the basic tools of market and firm analysis, game theory, incentive theory, and auctions. In addition, the module will provide an introduction to fundamental ideas in macroeconomics, reinforced by lectures from leading policy experts.