Courses
MASTER OF SCIENCE IN APPLIED FINANCE COURSES (SMU)
Term 2: (August through November @ SMU, five modules)
Quantitative Methods and Economic Analysis
This module provides the basics of quantitative analysis, probability theory and data analysis, with special reference to finance. Topics include the time value of money, theory of interest, probability theory, descriptive data analysis, decision trees, estimation and hypothesis testing, and simple statistical analysis such as correlation analysis, regression analysis and time series analysis. It also covers the principles of microeconomic and macroeconomic analysis with particular reference to economic management and the financial markets. The aim of this module is to learn and apply theories to the analysis. Topics in microeconomics include supply and demand, competition and monopoly, externalities and the new IT economy. For macroeconomics, topics will include growth, trade, cycles, and the causes and cures of global financial turmoil.
Hedge Funds
This module provides an overview and a framework for hedge fund management. Topics will include hedge fund objectives, institutional features, statistical and econometric concepts, hedge fund strategies, fund of hedge funds, risk management, performance measurement and compensation issues.
Financial Statement Analysis
This module provides an introduction to the framework for financial statement analysis and financial statements (i.e. statement of financial position, statement of financial performance and comprehensive income, and statement of cash flows). In order to understand financial statements, students will learn the key accounting concepts and policies that determine the 'numbers' presented in financial statements. Students will also be introduced to basic financial analysis techniques, and specific areas of financial statements (e.g. inventory, receivables, PPE, income taxes, financing liabilities, off-balance sheet financing etc.), as well the need for analytical adjustments in analysing financial statements. Students will also be introduced to the differences in US and IFRS GAAP, and the convergence of accounting standards.
Fixed Income Analysis
This module the basics of fixed income securities markets and the derivatives markets. Fixed Income Securities are securities whose income is literally fixed, and more generally any claims whose value or risk is related to interest rates and interest rate uncertainty. Students will learn about the evaluation of these securities, the market operations and the risk involved. It then discusses how you can manage fixed income security portfolios and manage the resulting risk. The course will also discuss properties of the derivative markets, including basic derivative securities such as forwards, futures, swaps, and options. It will discuss the pricing and valuation of derivative contracts under the no-arbitrage framework.
Financial Analytics and Innovation
To be updated.
Term 3: (January through May @ SMU, four modules)
Advanced Quantitative Methods and Economic Analysis
This module builds on and extends the coverage of the earlier modules of Economic Analysis and Quantitative Methods and Statistics. Some advanced topics on the analysis of economic data will be covered, including multiple regression models, time series and econometric modelling, nonparametric statistics, and multivariate analysis. Applications of these techniques in portfolio management, economic forecasting, term structure modelling, asset pricing theories, performance measures and interest rate management will be examined.
Advanced Financial Statement Analysis
This module builds on and extends the coverage of the earlier modules, Financial Statement Analysis 1 and 2. Advanced topics in financial statement analysis including corporate restructuring, accounting for inter-corporate investments, mergers and acquisitions, distress analysis, accounting for multinational operations and the use of financial statements as a tool for valuation and forecasting will be covered.
Financial Modelling and Analytics
Managers often need to make important yet quick decisions which are usually difficult to justify without a good model and thorough analysis. This module focuses on helping students leverage spreadsheets as effective tools in financial modelling. Through hands-on practice in class, students will be able to develop their own spreadsheet models covering representative topics from corporate finance to investment planning and analysis, analysing trade-offs and sensitivities, and understanding the implications of uncertainties and risks. The key emphasis of this module is on acquiring the necessary programming skills and developing the art of modelling, more than learning about available financial models.
Financial Sustainability & Alternative Investments
To be updated.
