Applied Financial Management

This course will cover topics in investments – securities and financial markets. The goal is to de-mystify financial markets – bonds, equities, derivatives – and to provide you with the tools and the practical knowledge to solve problems and understand financial decision-making. There is no formal pre-requisite but you should have some prior exposure to finance, NPV calculations, and financial markets – for example a finance course as an undergraduate or studying for the CFA exams. (Booth courses BUS 35001 (Introductory Finance) or BUS 35200 (Corporate Finance) will give background you need. BUS 25000 (Investments) will have some duplication with this course.)

The first five weeks of the quarter will cover the basics of investments and securities markets – bonds, equities, derivatives, portfolio theory and risk. The final four weeks will cover three special topics: sustainable finance, municipal markets (focusing on municipal swaps) and quantitative risk management.

The focus for the course will be practical, building on the instructors’ extensive practical experience in the derivatives markets and hedge fund management. We will learn how these instruments really work and how the tools are actually used in the markets.