Core courses and electives
The economics courses apply theories and methodologies to finance, while the finance courses provide the underlying economic principles of financial practice.
This course covers the theory and practice of valuing claims to uncertain cash flows; for example, stocks and stock options, bonds, and foreign exchange instruments. It 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'. Half of the course is dedicated to the application of advanced statistical methods to the area of asset pricing and to practical work with real-world data.
You will learn the fundamental principles of financial accounting, the valuation of firms' assets and the determinants of firms' financial structures. The course covers 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.
This course provides students with a background in the fundamentals of empirical modelling and testing in finance. It will introduce you to modern financial econometrics providing appropriate techniques for empirical investigation in financial economics where you will gain a better understanding of 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. In this course, you will learn to apply the basic tools of market and firm analysis, game theory, incentive theory, and auctions. In addition, the course will provide an introduction to fundamental ideas in macroeconomics, reinforced by lectures from leading policy experts.
Ethics & finance
This course engages students with theory and practice, offering the opportunity to interact with practitioners on an ethical topic and write a case study from real world data.
You will have the opportunity to choose five electives, tailoring your learning experience and expanding your knowledge in areas important for your career.
- You can substitute one elective with a 10,000 word project addressing a question of academic interest or practical significance.
One of your electives must be chosen from the list of MFE only electives which is published annually.
The list of electives below are examples of courses previously offered; the list changes year to year.
Advanced econometrics: forecasting
This course will provide an overview of the methods (theory and practice) underlying a wide range of forecasting problems in economics and finance. You will become acquainted with forecasting methods that can be applied to a wide range of datasets and forecasting problems.
Continuous time finance
You will be introduced to stochastic calculus and understand how it can be applied to the pricing and hedging of financial contracts, such as equity options and interest rate derivatives. This course will equip you with the probabilistic techniques required to understand the most widely used financial models.
This elective will cover methods to establish value and increase value, focusing on areas of business where getting valuation correct is of critical importance (mergers and acquisitions, private equity transactions, project financing, etc).
Diversity, inclusion and finance
Explore real-world debates on diversity and inclusion (D&I) in the workplace. The course emphasises gender but also discusses race and other aspects of diversity, including age and skill diversity. The course will provide you with the tools to critically analyse and unpack a range of current discussions around gender and other elements of D&I.
Financial crises and risk management
This module focuses on understanding financial crises as well as learning risk management techniques and tools to apply to real-world situations.
Financial markets trading
You will learn how to manage risk and your investors, and understand the market dynamics and participants.
Fixed income and derivatives
You will develop the analytical tools, based on the theories from the core finance courses, to understand and price fixed income financial instruments and derivatives.
Fundamental analysis for active investing
The aim of this course is to provide a foundational understanding of financial statement analysis concepts with an emphasis on practical applications of fundamental analysis for active investing. The course will be entirely case-based and is designed to be hands-on and interactive, augmented through class discussion and guest lectures by investment professionals.
Governance and ethics
How can we live well in business? Do corporations have moral responsibilities? What they are? This course uses philosophy, politics, sociology, economics, and psychology to address these questions. It is heavy on discussion, involves several very senior practitioners, and it includes case studies on corporate fraud, board diversity, human rights in business, conflicts of interest, professionalism, and the Covid-19 crisis.
Identification: the art and science of separating causation from correlation
You will learn how to deploy the techniques of identification of causation, as opposed to correlation, in almost any circumstances and learn how to use a variety of tools, including randomised control trials (RCTs), to carry out your own evaluations.
The individual project should be related to an area of financial economics and demonstrate your ability to apply the tools of financial economics learned on the programme to a problem in the field. The topic could address an issue of practical significance to investors, firms, financial institutions, governments or regulatory bodies. Alternatively, it could consider a topic of academic interest.
This elective develops analytical frameworks useful in understanding current issues of macro performance and capital flows in the international economy. The focus will be on the interdependent nature of these issues in a globalised world.
Investing in private markets
You will experience this area from the asset owner angle (wealth management) and bring your critical thinking to new heights. Join dozens of diverse, global, and inspiring professionals for an interactive tour of this area of business.
Investing in public equity
This is an asset management course focusing on key public equity investing topics such as diversification (and investing around the world) and market efficiency (from a practical perspective), passive investing, active investing, mutual funds/performance and equity environmental, social and governance (ESG) factors. There are also two substantial case studies on dimensional fund advisors and endowments.
Mergers, acquisitions and restructuring
This module will give you real insights into the mergers and acquisition process and understand the motives, strategy, regulation, valuation, tactics, deal-making, shareholder engagement, and integration.
You will learn about and understand this fascinating, fast-growing, and often controversial financial sector.