Finance, or financial economics, covers two main areas: asset pricing and corporate finance. For asset pricing, a field that studies how investors value securities and make investment decisions, we will discuss topics like prices, risk, and return, portfolio choice, CAPM, market efficiency and bubbles, interest rates and bonds, and futures and options. For corporate finance, a field that studies how firms make financing decisions, we will discuss topics like security issuance, capital structure, and firm investment decisions (the net present value approach, and mergers and acquisitions). In addition, if time permits, we will cover some topics in behavioral finance and household finance such as limits to arbitrage and investor behavior.

This course examines the theory of financial decision making and statistical techniques useful in analyzing financial data. Topics include portfolio selection, equilibrium security pricing, empirical analysis of equity securities, fixed-income markets, market efficiency, and risk management.

An introduction to option pricing theory and risk management in the discrete-time, bi-nomial tree model, and the continuous time Black-Scholes-Merton framework. Both the partial differential equations approach and the martingale approach (risk-neutral pricing by expected values) will be developed. The course will cover the basics of Stochastic, Ito Calculus.

In this course we will develop a deep understanding of the institutional foundations of Chinese finance, and we will use this framework to study the strengths and weaknesses of the Chinese economic system through the lens of finance. We will start from a historical overview of Chinese finance and will study the institutions that drive financial market development. Next, we will focus on the unique economic features of the three main channels of Chinese finance: capital markets (including the stock and bond markets), bank- and fund-based intermediation (including the banking sector, shadow-banking, and private equity, and venture capital), and informal finance. Finally, we will study the opportunities and challenges posed by Chinese-style finance for the future development of the global financial system.

This course combines elements of business, economics, engineering, financial statement analysis, strategy, and law to provide students interested in entrepreneurship with a practical understanding of the mechanics of growing a 'post-idea' company. The class will explain how prospective investor's view entrepreneurs and their ideas, teach students about types of capital, sources of capital, and term sheets, and generally delve into the timing and financial alternatives and trade-offs facing entrepreneurs seeking capital in order to launch or grow a company.