Finance

This is an intense introductory course to finance. By the end of the course, students will have been familiar with the principles of finance, spanning topics such as portfolio allocation theory, empirical patterns in observed asset prices, capital structure, and valuation of derivatives.   

The first part of this course covers how asset prices are determined. Theoretical treatments that incorporate rational side argument as well as behavioral side are discussed. In addition, asset pricing models such as CAPM, Fama-French 3 factor models are covered in depth. Finally, we touch the recent discussion on the proliferation of factors, the so-called "zoo of factors".  

The second part of this course provides a comprehensive understanding of the financial market and how firms make financial decisions, aiming to develop students' economic intuitions and train their skills in quantitative analyses. It covers the following topics: valuation and investment decisions, capital structure and financing decisions, return and risk, and the functioning and valuation of derivatives.