Finance 390

33:390:300 Financial Management (3) Valuation of assets based on the timing and risk (including portfolio-based risk) of their cash flows. Applications include the valuations of financial assets (bonds and shares of stock) and capital budgeting. The use of arbitrage to value assets such as options. Prerequisites: 33:010:272; 01:198:170; 01:220:102,103; 01:640:135; 01:960:285. Admission to Rutgers Business School.

33:390:320 Global Capital Markets (3)   A study of the structure of securities, the financial markets in which they are traded, and the trading rules used by these markets. The assets include stocks, bonds, derivatives, and securitized assets issued by domestic and international issuers from the public and private sectors. The markets include both domestic and international exchanges. Prerequisite: 33:390:300.

33:390:375 Global Money Markets and Institutions (3) A study of the markets and the regimes for the exchange and interest rates for the world's leading economies and currencies. Examines the related institutions (e.g., central banks), agreements and policies, and the use of markets to share and allocate risk. Prerequisite: 33:390:300.

33:390:380 Investment Analysis (3) Overview of financial markets and instruments that are used in investments. A brief discussion of the allocation of capital to risky assets. Efficient markets hypothesis, the behavioral finance critique, and technical analysis. The term structure of interest rates and the valuation of fixed income securities, including the use of duration and convexity. Valuation of common stock. Prerequisite: 33:390:300.

33:390:385 Investment Banking Analysis (3) A valuation-oriented course that provides many of the skills and knowledge required by first-year investment banking analysts. Includes Excel-based valuation models, financial statement and discounted cash flow analyses, and comparable valuation methodologies. Also included are modeling leverage buyouts and mergers and acquisitions. Prerequisites: 33:390:300 and 400.

33:390:400 Corporate Finance (3) Capital budgeting, capital structure, dividend policy, mergers and acquisitions, and some aspects of international finance. Prerequisite: 33:390:300.

33:390:410 Asset Pricing and Portfolio Analysis (3) Focuses on modern theories of portfolio choice and portfolio management. In-depth coverage of mean variance portfolio selection, efficient frontier, Markowitz portfolio selection model, single- and multifactor index models. Examines capital asset pricing models and the efficient market hypothesis, portfolio performance evaluation, active portfolio management, and international diversification. Prerequisite: 33:390:380.

33:390:420 Futures and Options (3) Analysis of different kinds of futures and options. Use of commodity, interest rate stock index, and currency futures for hedgers and speculators. Stock options, investment strategies, arbitrage restriction on value and evaluation models, and the use of options and futures contracts in portfolio management. Corequisite: 33:390:380.

33:390:430 Working Capital Management (3) Introduction to liquidity and cash management, including the examination of inventory, cash, accounts receivable, and other treasury-related, short-term, financial management issues. Prerequisite: 33:390:300.

33:390:435 Real Estate Finance and Mortgage-Backed Securities (3) Examination of primary markets, secondary markets, and derivative products. Topics include origination process, income-producing mortgage loans, agency purchases, security pricing, and securitization of single-family and commercial loans. Prerequisite: 33:390:300.

33:390:440 Advanced Corporate Finance (3) Complex corporate securities, such as callable and convertible debt or adjustable rate preferred stock, option theory, corporate insurance, and hedging. Prerequisite: 33:390:400.

33:390:450 Financial Analysis, Planning, and Forecasting (3) Overview of short-term and long-term financial analysis, planning, and forecasting; credit, cash, marketable securities, and inventory management. Applications of regression, linear programming, and computer techniques in alternative financial planning and forecasting analyses. Prerequisite: 33:390:300.

33:390:460 Corporate Risk Management (3) Examination of issues faced by the risk manager. Provides a survey of techniques used to measure, estimate, and mitigate a variety of risk exposures, by insurance, hedging, and diversification. Covered risk exposures include interest rate risk, credit risk, market risk, liquidity risk, foreign exchange risk, off balance sheet risk, and operational risk. Prerequisite: 33:390:420.

33:390:465 Pension Fund Investment and Management (3) Application of financial theory and methods to pension fund investment and management. Prerequisite: 33:390:300.

33:390:480 Research in Finance (BA) Individual research and reading program under the guidance of a member of the department. Prerequisite: Permission of department. Open only to finance majors.

33:390:495,496 Honors Project in Finance (3,3) Individual research and preparation of a written thesis under direction of a finance faculty member. Open to finance seniors in honors program only.  Both semesters must be completed to receive credit.