The Master of Science (MSc) in Finance equips students with a solid understanding of financial theory and research methodology. Graduates are prepared to build successful careers in research or analysis in the financial sector or in government. The program also serves as excellent preparation for those wishing to pursue their studies at the doctoral level.
Successful applicants to the MSc in Finance program have strong quantitative and analytical abilities and a solid understanding of economic theory and research methodology. Ultimately, they apply these skills and knowledge while conducting original research in the form of a master’s thesis, working under the direct supervision of a faculty member.
Candidates interested in the MSc Finance program must have completed an undergraduate degree with excellent grades and a focus on finance and economics. In a small number of cases, applicants with a limited background in finance and economics, but who have a specialization in a quantitative discipline such as mathematics, statistics, computer science, or engineering, or a comparable research concentration in one of the social sciences, may be considered.
The MSc program is a 45-credit program offered on a full-time or part-time basis.
Program structure: Year 1
Program structure: Year 2
Specialized Finance seminars
This seminar deals with the market for financial assets, market efficiency and the valuation of financial assets. The seminar begins with a discussion of various financial assets and their institutional trading arrangements, and then continues with a theoretical development of market efficiency and testing methodologies. Various market anomalies will be identified as the empirical evidence on whether or not various types of information are fully reflected. The seminar concludes with the theory and empirical evidence on various asset-pricing paradigms. These include the Capital Asset Pricing Model (CAPM) and the Arbitrage Pricing Model (APM) for equities, the Option pricing Model (OPM) for derivative securities, and the single factor duration model for fixed-income securities.
This seminar covers the various aspects of investment analysis and management such as selection, revision and measurement in both a domestic and global environment. The seminar begins with a discussion of asset allocation systems and the merits of passive and active dynamic investment strategies in the absence and presence of market imperfections such as informational inefficiencies, taxes and transaction costs. Techniques for "stock picking", "market timing", portfolio insurance, program trading, bond swaps, (contingent) immunization, among others, will be discussed. The seminar ends with the measurement of investment performance and the management of particular types of investment portfolios. Normally, the Seminar in Investment Theory (MSCA 621) will be taken concurrently with, or prior to, this seminar.
This seminar applies the theory of decision making under uncertainty to evaluate the firm's financial and real policies. It offers a rigorous review of the modern theoretical and empirical literature on the valuation of the firm's securities and their special features, the relevance of the firm's financing choices and dividend policies, corporate mergers and acquisition activities, and the determination of the firm's cost of capital. More specifically, the analyses are conducted in an equilibrium setting where the impact of imperfections such as taxes, bankruptcy costs, informational asymmetries, and agency problems is analyzed for corporate decisions.
The objectives of this course are two-fold: first, to introduce the area of mergers and acquisitions and second, to strengthen and develop the research skills (both in conducting and evaluating research) of students. To encourage you to read new research, you will be required to summarize and critique the research of others. In the last few weeks of the session, we will have a mini-conference. Students will present their work and discuss the work of other students.
Theoretical and empirical issues on the valuation and the financial use of options and futures are studied in this seminar. The seminar begins with an introduction of the options and futures markets and proceeds with the developments of pricing models for evaluating these securities. Several different types of options and futures contracts (such as stock index options, options on debt instruments and currencies, interest rate and stock index futures) are introduced and strategies for using them for arbitrage, hedging, and speculative purposes are discussed.
This seminar examines the financial aspects of international business, including the financing and hedging activities of firms involved in the international transfer of goods and services, and decision making in connection with the asset management and financing of multinational corporations. Several mechanisms for managing international exchange and financial risk will be assessed, including forwards, options and futures on currencies as well as interest rates. The Eurocurrency and Eurobond markets will be studied, and financial market efficiency and integration will be examined in various regions.
This course takes a finance perspective in examining conflicts over control and governance of the corporation. Students will familiarize themselves with the main areas of investigation in the corporate governance literature, discuss major scholarly articles of the field, get introduced to the major techniques of theoretical and empirical research, get introduced to recent contributions in the field. Out of the several mechanism to mitigate the conflicts between ownership and control, this class will focus on partial concentration of ownership and control in the hands of one or a few large investors, and alignment of managerial interests with investors through executive compensation contracts. The course will also consider the effect of legal and regulatory institutions of corporate governance in different countries. Finally we will investigate some of the reasons why the topic of corporate governance has received so much attention in recent years, namely the world-wide wave of privatization of the past two decades, deregulation and integration of capital markets combined with recent financial crises that have put the spotlight on corporate governance in emerging markets, and a series of recent US scandals and corporate failures.
This seminar is designed to introduce students to several multivariate analysis techniques with emphasis on the practical use of these tools in business research. Techniques that will be covered in this course include MANOVA, discriminant analysis, principal components and factor analysis, canonical correlation analysis and multidimensional scaling. The objective of the seminar is to provide a fundamental understanding of the nature, power, and the limitations of multivariate statistical techniques.