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Financial Management

FNCE 5101 - Financial Management

All major business decisions have financial implications, and therefore, the financial manager’s contribution to directing the operations of the firm has become increasingly critical in the last decade. This course provides an overview of techniques for effectively studying financial decisions and their impact on the company. The course covers the basic concepts and tools necessary to understand the financial decision-making process. The fundamental issues of timing and uncertainty are integrated into the problem of asset valuation. Financial analysis models for determining appropriate sources of capital and effective use of long term and short term assets are discussed.

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FNCE 5151 - Introduction to Economic Markets

Provides a foundation in the economics of markets, with particular application to financial markets and the role of information. Specific topics include the following: (1) the basic principles of supply, demand, profit maximization, price determination, international trade, and exchange rates; (2) the basic structure of modern, global financial markets, as an application of the basic economic principles; (3) the use of information and information technology in financial markets, including use of the internet, Bloomberg, Dow Jones and other computerized sources of information; and (4) a review of the “efficient market hypothesis.

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FNCE 5181 - Fundamentals of Financial Management

Managers must understand how the firm is financed and the effects on decision making. In this course, students gain tools and frameworks to analyze financial decisions based on principles of modern financial theory. The course covers concepts such as discounted cash flow techniques, and its applications to valuation of common stock and bonds and lease vs. buy decisions. The time value of money is examined for both personal financial planning and business applications, and is used to value financial instruments, including common stock and bonds.

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FNCE 5182 - Capital Budgeting and Corporate Financial Policy

Firms must generate sufficient returns for their owners, and new project valuation is an important tool to assess competing use of funds. In this course, students apply the tools and techniques of the time value of money framework to capital budgeting issues and corporate financial policy. They focus on corporate capital budgeting and valuation, investment decisions under uncertainty, market efficiency, and corporate financial policy including financing and dividend decisions. Students evaluate capital investments with a focus on how companies analyze the risk associated with future cash flows and how that risk is incorporated in the required rates of return, as well as how financing choices (stocks and bond issues) and payout policy affect the cost of capital of large projects. Students apply two widely used models, the Capital Asset Pricing Model (CAPM) and the Weighted Average Cost of Capital (WACC) to capital budgeting problems.

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FNCE 5202 - Investment and Security Analysis

A rigorous foundation in risk/return analysis, asset valuation, the use of derivatives, and financial engineering techniques in risk management and overall portfolio management. Information technology is applied, including computerized financial modeling and asset management software.

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FNCE 5205 - Global Financial Management

An exploration of global finance topics such as 1) international trade, 2) balance of payments, 3) exchange rate determination, 4) currency exposure, and 5) the cost of capital in global financial markets. Information technology is applied.

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FNCE 5206 - Financial Institutions: Management and Capital Markets

Investigation of the structure financial services companies (banks, insurance companies, securities firms, and so forth). Emphasis is on the tools used by these firms to compete to provide basic financial services like pooling resources, managing risk, transferring economic resources, pricing information and clearing and settling payments. Financial services product development and the role of information technology in financial services, including software and data.

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FNCE 5209 - Corporate Finance

A markets-oriented approach to corporate finance issues, especially capital structure and dividend policy. Modern concepts of agency theory and asymmetric information are integrated.

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FNCE 5311 - Financial Markets and Instruments

This course introduces fixed income securities, futures and forwards, swaps and options contracts and discusses the structure of financial markets, including equity and bond markets, money markets, foreign exchange, and commodities.

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FNCE 5312 - Financial Institutions – A Risk Management Approach

Sources of risk and management of risk through diversification, hedging and gearing, Value at Risk (VAR), Risk Management System and Basel II Accord, as well as the measurement of market risk, interest rate risk, credit risk, and other risks are addressed in this course.

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FNCE 5313 - Financial Risk Modeling I

Students of this course will learn the mathematical foundation for modeling financial risk as well as key concepts in algebra, statistics, calculus, time series and econometrics principles with applications to modeling risk management as a dynamic process over time.

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FNCE 5321 - Financial Risk Modeling II

This course provides a background in building advanced financial models, including lattice models, numerical methods, and Monte Carlo simulation; programming techniques to value complex derivatives and portfolios; and analyses of financial risk problems with Excel, VBA, and higher level programming languages.

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FNCE 5322 - Financial Risk Management I – Equity Markets

The objective of this course is to provide strategies for security selection and asset allocation and evidence on returns and volatility, trade-to-trade equity price behavior, trading volume and patterns, financial risks and optimal allocation of funds. Students will use pricing and equity derivatives in risk management as well as exotic options in equity-linked and interest rate-linked products and strategies.

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FNCE 5323 - Strategies & Risk Management in Alternative Investments I

The objectives of this course are to (a) discuss the alternative investment tools (b) examine the performance of hedge funds and other alternative investments such as venture funds and private equity, and (c) present an in-depth analysis of the main hedge fund investment strategies, (d) explore the behavioral issues and human factor in risk management. The recent financial crises have exposed how risk models can fail as a result of human errors, and lack of communication. The instructors will include business professionals and rely mostly on cases which apply the concepts developed in the previous classes. This class will devote a significant amount of time on how to address the human factor in modeling risk.

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FNCE 5331 - Financial Risk Modeling III

This course covers the application of advanced estimation and forecasting techniques including multivariate and time series models (ARIMA) and maximum likelihood estimation to risk management, and advanced VAR topics, including computing and implementing VAR management systems, exten-sions and limitations of VAR (IVAR, DVAR), and stress testing.

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FNCE 5332 - Financial Risk Management II – Fixed Income Markets

This course covers: bond fundamentals and risk, models of term structure, the use of interest rate derivative in hedging interest rate risk, the use of mortgage-backed and other asset-backed securities (MBS, CMBS), and other debt instruments (CDOs, CLOs etc.) to manage credit and cash flow risks, in addition to valuation and trading strategies of pooled assets and derivative bonds using Monte Carlo and option pricing techniques.

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FNCE 5333 - Strategies & Risk Management in Alternative Investments II

The objectives of this course are to (a) discuss the alternative investment tools (b) examine the performance of hedge funds and other alternative investments such as venture funds and private equity, and (c) present an in-depth analysis of the main hedge fund investment strategies, (d) explore the behavioral issues and human factor in risk management. The recent financial crises have exposed how risk models can fail as a result of human errors, and lack of communication. The instructors will include business professionals and rely mostly on cases which apply the concepts developed in the previous classes. This class will devote a significant amount of time on how to address the human factor in modeling risk.

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FNCE 5341 - Financial Risk Management III – Advanced Topics

Topics covered in this course include: pricing, measurement, and management of credit risk; credit risk modeling; use of credit derivatives to manage and control credit risk; building and managing portfolios, including long/short, and market neutral strategies; measurement of credit risk, including Actuarial, Merton, and Copula function; and portfolio construction, performance evaluation, asset allocation, and portfolio risk management (VAR, Hedging, Portfolio insurance).

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FNCE 5342 - Internal Control Risk – Valuation and Analysis Issues

This course reviews the accounting requirements associated with asset valuation and income recognition of complex portfolios that utilize advanced hedging techniques. The course analyze an organization’s control environment and processes within COSO and SOX frameworks and examines the control practices that organizations use to help ensure the integrity of information provided by its accounting systems. Finally tax related issues and Basel II are also discussed.

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FNCE 5343 - Legal & Ethical Issues in Financial Risk Management

This course provides participants with an introduction to the federal laws regulating financial products and the internal controls necessary to comply with those laws. It examines the federal regulation of securities and derivatives and the market participants engaged in those businesses. Participants study safety and soundness regulation of other major financial institutions, including commercial banks, bank holding companies, and insurance underwriters. Finally, the course examines the compliance activities and internal controls that financial firms need to maintain to comply with federal law particularly the Sarbanes-Oxley Act. It closes with an overview of new developments in financial regulation and compliance.

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FNCE 5351 - Excel Visual Basic Applications in Financial Risk Management

The course trains students with advanced knowledge of financial risk management to build risk measurement and management tools by using Excel VBA. It assumes prior knowledge of the VBA language. It provides an advanced learning forum for students to develop specific applications on their own. These deliverable risk management applications are graded.

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FNCE 5352 - Financial Programming and Modeling

This course focuses on the use of MATLAB, R, and SAS for financial programming and modeling. Students pick up materials such as programming basics, SQL, database operations, file operations, graphical user interface design, object-oriented programming, XML, Component Object Model (COM) client and server, and application programming interface (API). Fundamental concepts are reviewed. Students learn modeling techniques such as Monte-Carlo simulation, binomial and trinomial trees, Black-Scholes, finite difference methods, constrained and unconstrained optimization, linear and non-linear programming, heuristic optimization, mean-variance, Value at Risk, data envelopment analysis (DEA), and data mining techniques applied in risk management, and apply these in financial contexts. More specifically, students construct various applications, for example portfolio optimization with live data from the internet using various methods, option pricing using Monte-Carlo, binomial trees, Black-Scholes, asset pricing models, capital budgeting, efficiency evaluation, finding betas of stocks, risk evaluation using data mining techniques, etc., across several programming languages.

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FNCE 5353 - Enterprise Risk Management (ERM)

The UConn MSFRM Enterprise Risk Management (ERM) Course will teach with a real world approach for students and real-world professionals to use in determining how business risk can affect top priority business strategies and how to develop action plans for addressing those risks through ERM. This course will teach the student the steps necessary to achieve an effective ERM process through a unique methodology for identifying and prioritizing risks across business functions. It provides an initial set of specific risks many functions may currently face. It also includes tools, sample reports and case studies that tie everything together providing the participant a practical guide for implementing ERM. The emphasis in this course is on linking ERM to the corporate strategy which is well illustrated through case studies. In addition, there will be a detailed discussion of the value of ERM to the enterprise and its various stakeholders.

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FNCE 5408 - Valuation of Financial Assets

The objective of this course is to develop models for asset allocation, and security selection to construct a diversified portfolio. It focuses on the analysis of industry segments, and valuation of common stocks and bonds. Topics include analysis of business models, measurement of risk and cost of capital, valuation of common stocks, and valuation and measurement of risk of bonds and bond funds. Preparation of analysts’ reports is an integral part of the course.

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FNCE 5409 - Advanced Valuation and Portfolio Management

The course starts with performance measurement, and then discusses various trading and risk management strategies, and concludes with a discussion of the impact of Accounting process, and Corporate Governance on valuation. Technical analysis is briefly discussed at the end. The course is delivered primarily through discussion of cases.

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FNCE 5410 - Fund Management I

This course is the first part of a two-part Fund Management course. This course develops the objectives and goals, the process, and the procedure for execution for management of funds in conformity with the SMF Prospectus. The purpose is to train students in the art of asset allocation, security selection, portfolio construction, risk management, preparing analysts reports for trade recommendations, monitoring of positions, and preparing reports for presentation to the IAB.

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FNCE 5411 - Fund Management II

This course is the second part of a two-part Fund Management course. In addition to all the activities in the first part during Fall, this course focuses on portfolio management, performance evaluation, attribution analysis, development of various trading and risk management strategies, and technical analysis. Students prepare the final annual report for presentation to the UConn Foundation.

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FNCE 5504 - Options and Futures

Analysis and valuation of speculative securities including options and futures with emphasis on their use for hedging and speculative motives. Major valuation models are discussed and applications of contingent claim valuation framework to corporate finance problems are also explored.

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FNCE 5507 - Working Capital Management

Working capital management is critical in determining whether a firm is competitive and profitable. Each component of working capital cash, marketable securities, receivables, inventories, and payables is studied and is related to the firm’s operations. The course concentrates on applications and includes lectures by working capital managers from major corporations.

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FNCE 5508 - Asset Allocation and Capital Market Theory

Provides an integrative overview of issues in financial theory. Contemporary theoretical developments in corporate finance and financial markets are addressed. Major topics include agency theory, option theory, term structure theory, CAPM, APT, market efficiency, capital structure, and dividend policies under full and asymmetric information.

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FNCE 5512 - Fixed Income Instruments and Markets

This course examines contemporary portfolio management of fixed income institutional investors, issuers, and broker-dealers. It assesses current practice and presents a theoretical framework for anticipating change. Coverage includes pricing, assessment of return and risk, and the development of overall strategies, for these markets: government, corporate, municipal, and international bonds; mortgage-related and other asset-backed securities; and derivative securities including futures, options, swaps, and other interest rate contracts.

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FNCE 5513 - Advanced Corporate Finance: Capital Investment Finance

This course in dynamic capital budgeting applies corporate finance theory to the real-world problems that financial analysts face every day, integrating theory and practice, facilitated through the use of simulation analysis. These tools include both an understanding of the theoretical underpinnings of sound capial budgeting techniques and a mastery of the technology necessary to practically implement this knowledge in a real-world setting.

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FNCE 5521 - Risk and Insurance

A study of the recognition, analysis, and treatment of pure risk from the viewpoint of the enterprise. This course considers various methods of risk management but emphasizes the role of insurance.

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FNCE 5532 - Real Estate Investment and Portfolio Management

This course provides an overview of real estate investment decision-making. Topics include: risk-return analysis of alternative types of real estate investments; leases, operating costs, and tax consequences; valuation techniques, including discounted cash flow and option pricing; real estate portfolio management; and alternative forms of equity securitization such as real estate investment trusts.

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FNCE 5533 - Real Estate Capital Markets

This course covers the structure and operation of the mortgage market. Topics include the identification, measurement and management of risk from the perspective of borrower, lender, and investor. The course stresses the integration of the real estate debt markets with the global capital market, and considers the role and impact of mortgage-backed securities for residential and commercial real estate lending.

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FNCE 5534 - The Internet and Information Systems Applied to Real Estate

Specialized information technology is now available for all segments of the real estate industry. For example, investment firms are particularly interested in information technology that helps them monitor, understand, and manage risks associated with mortgage-backed securities. Database management systems and geographic information systems (GIS) give the decision-maker unprecedented power to manage data and analyze risks. The Internet opens up vast new sources of timely information. This course stresses the use of GIS and of the Internet. Students will gain hands-on experience with these tools through projects that are organized around business problems.

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FNCE 5610 - Personal Financial Planning

This course is for the professional working in the area of financial services as well as for one’s personal planning. It is the application of finance theory to the individual and family. This integrated approach covers lifetime cash flows, asset accumulation and allocation, debt management, retirement planning, and risk management.

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FNCE 5611 - Financial Modeling

This course is a “hands-on” use of computerized decision aids to analyze a variety of financial problems. Applications will be drawn from corporate financial planning, modern portfolio theory, options pricing, dynamic trading, and so forth. No computer experience is required; this course will help students develop the necessary programming skills to build fairly sophisticated models.

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FNCE 5630 - Real Estate: A Personal Investment Perspective

Real estate is a major component of household wealth. Important household real estate decisions include, for example, where to buy a house; renting versus owning a home; choosing between alternative mortgage instruments; understanding the house purchase transaction; and the risks and returns of real estate investing. This course surveys the fundamentals of real estate from a personal investment perspective.

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FNCE 5894 - Seminar

Investigation and discussion of special topics in finance, risk and insurance and/or real estate and urban economic studies.

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FNCE 5895 - Special Topics in Finance

Faculty-student interaction on a one-to-one basis involving independent study of specific areas of finance, risk and insurance, and/or real estate and urban economic studies. Emphasis, selected by the student, may be on theoretical or applied aspects. A written report is required.

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FNCE 6200 - Investigation of Special Topics

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FNCE 6201 - Introduction to Finance Theory and Evidence

Topics include: efficient market hypothesis, utility theory, portfolio theory, CAPM, arbitrage pricing theory, option pricing, capital structure / tax theory, capital budgeting under uncertainty, current empirical studies.

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FNCE 6202 - Corporate and Institutional Finance

Topics include: information asymmetry, agency, internal capital markets, governance, market microstructure, moral hazard / adverse selection. Concepts are applied in both corporate and financial institution settings.

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FNCE 6203 - Theory of Financial Markets and Valuation

Topics include: fundamental pricing theorems, state preference theory, martingale pricing, dominance, spanning and arbitrage restrictions, consumption models, and continuous-time approaches to asset pricing, interest rate models, and derivatives pricing.

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FNCE 6204 - Empirical Methods in Finance Research

Topics include: predictability of asset prices, time series models of market microstructure, event study methodology, tests of asset pricing models and derivative pricing models, market efficiency, volatility of asset returns, and term structure interest rates.

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