Heber Farnsworth

An introduction to forward, futures, option, and swap contracts, including the basic valuation principles, the use of these contracts for hedging financial risk, and an analysis of option-like investment decisions. Recommended for finance students.

Students gain hands on experience with many aspects of investment management by managing the M.A. Wright Fund, a “live” stock portfolio of endowment assets. While the emphasis is on individual stock analysis, the course also covers quantitative and qualitative sector analysis, and portfolio-level risk and return analysis.

Review of classic investment theory, with emphasis on measuring and managing investment risk and return. Includes the development of modern portfolio theory and asset pricing models, an introduction to option and futures contracts, market efficiency, and stock valuation. Recommended for most finance students.

Study of the theory and practice of the fundamental principles in finance, emphasizing hands-on experience with a wide range of corporate finance and investment applications. The course provides extensive opportunity to implement finance theory at a practical level and to develop advanced analytical spreadsheet expertise, including financial statement forecasting, regression analysis, Monte Carlo simulation, and portfolio optimization.