MIT just made some insane finance courses free.

Skip Business School? Courses in this program MITx's Finance MicroMasters® Program Foundations of Modern Finance I Foundations of Modern Finance II Financial Accounting Mathematical Methods for Quantitative Finance Derivatives Markets: Advanced Modeling and Strategies MicroMasters 15.401 Finance Theory MIT Sloan MBA Program Andrew W. Lo Harris & Harris Group Professor, MIT Sloan School Lecture 1: Introduction and Course Overview © 2007-2008 by Andrew W. Lo The first one is Finance Theory 1, and it covers the core of modern economics, asset economics, asset valuation methods Fixed-Income Security [fikst 'in-kam si-'kyur-a-te] An investment that provides fixed periodic interest payments and the eventual return of principal at maturity. fixed income securities, The Basics of Common Stocks Shares of ownership of a corporation Lets stockholders vote on corporate governance and the board of directors including voting on takeover bids Allow for ownership of a portion of the company without taking possession Many corporations also give stockholders dividend payouts Investopedia common stocks, Capital Budgeting [ka-pa-tal 'ba-jat-in] The process a business undertakes to evaluate potential major projects or investments. and capital budgeting. Capital Asset Pricing Model (CAPM) Cost of Equity (ke) = rf + B (rm - rf) rf -> Risk-Free Rate B -> Beta rm -> Market Return (rm - rf) -> Equity Risk Premium (ERP) It also gets into diversification, selection, and how risky assets get priced. MIT SLOAN SCHOOL OF MANAGEMENT Advanced Analytics of Finance Hui Chen 15.457 Spring 2019 Problem Set 3 (Due: 2:30 PM, Tuesday, April 2) 1. Short questions. (a) True or false (explain in words, not formula): A longer estimation window helps us estimate the baseline model coefficients more precisely, which in turn reduces the variance of the observed returns in the event window. Thus, we should make the estimation window as long as possible. (b) In an event study of stock returns around earnings announcements, how should we deal with the fact that multiple firms could announce their earnings on the same days? The second one is analytics of finance, covering Econometrics [e-ka-na-me-triks] The use of statistical methods to develop theories or test existing hypotheses in economics or finance. econometrics, Monte Carlo Simulation [man-te 'kar-lo sim-ya-'la-shan] used to predict the probability of a variety of outcomes when the potential for random variables is present. Monte Carlo simulations, and Investopedia Wolfram MathWorld Quantum Stochastic Calculus Let B, be a one-dimensional Brownian motion. Integration with respect to B, was defined by Ito (1951). A basic result of the theory is that stochastic integral equations of the form X, = Xo + S. o(s, X,)ds + S. o(s, X,)dB, can be interpreted as stochastic differential equations of the form dX, = b(t, X,)dt + o(t, X,)dB, where differentials are handled with the use of Ito's formula dB,2 = dt dB, dt = dt d B, = 0 (dt)2 = 0 Hudson and Parthasarathy (1984) obtained a Fock space representation of Brownian motion and Poisson process over calculus. Portfolio Management [port-fo-le-o 'ma-nij-mant] science of overseeing a group of investments that meet the long-term financial objectives and risk tolerance of a client, a company, or an institution. Investopedia These are the same tools used in management and trading. Proprietary Trading [pra-pri-a-ter-e 'tra-din] A financial firm or bank that invests for direct market gain rather than earning commissions or fees by trading on the behalf of clients. Investopedia The third one is investments, and it focuses on evidence behind actual investment decisions. Modern Portfolio Theory [ma-dern port-fo-le-o the-e-re] A practical method for selecting investments in order to maximize their overall return within an acceptable level of risk. portfolio theory, the capital asset pricing model, Capital Asset Pricing Model (CAPM) [ka-pa-tal 'a-set 'pri-sin 'ma-dal] ical model that estimates the expected return of an investment based on its riskiness relative to the rest of the market. Investopedia Market Efficiency [mar-kat 'e-fi-shan-se] The degree to which market prices reflect all available, relevant information. and more. Together, these three courses foundation finance majors spend years building. Comment link, and we'll DM you these courses, plus some other resources for free.