Loyola University Chicago

Quinlan School of Business

Finance

The MBA with a finance concentration is one of the most popular areas in business studies today. Interest is driven by professional opportunities in business, investment, and finance.

Loyola's MBA with a finance concentration is well known for its practical curriculum, hands-on application, and partnered delivery with established Chicago businesses. In addition to studying relevant trends and current issues, you will employ a global perspective and gain a solid understanding of international and emerging financial systems.

Elective Courses

Choose three of the following courses to complete the finance concentration.

Courses(3)

This course examines the international dimensions of financial management.  It introduces potential opportunities/challenges faced by multinational corporations as they expand their business overseas.  
Outcome: Students will be able to demonstrate understanding of foreign exchange markets,   fundamental international parity relationships, foreign exchange risk management strategies, and capital budgeting for multinational corporations.

This is an advanced course in corporate finance where students are given a thorough grounding in firm valuation and exposed to various financial decisions including raising capital, mergers and acquisitions, leveraged buyouts, spin-offs, and carve-outs, all in the context of their impact on firm value. 
Outcome: Students will be able to demonstrate an understanding of firm valuation, as well as the impact of various corporate decisions on firm value.

This course includes the topics of asset pricing models; risk and return analysis of stocks, bonds and cash equivalents; portfolio theory; bond pricing, the term structure of interest and immunization strategies in managing fixed income securities. 
Outcome: Students will be able to demonstrate the analytical tools and finance theory necessary for making good investment decisions and for understanding the pricing of financial securities.

The course analyzes the importance played by financial institutions.  This is a survey course that analyzes the present financial institutional structure with a special focus on managing risk. 
Outcome: Students will demonstrate an understanding of the following topics: the role of financial intermediaries in managing interest rate, credit, market and international banking risks. Special attention will be given to procedures for measuring and managing these risks.

This is a course in investment analysis and applied portfolio management. Topics will include investment policy and objectives, performance analysis and attribution, portfolio design, fixed income analysis and portfolio management, and equity analysis and portfolio management.

Outcomes:

At the conclusion of this course the student should be able to:

1. Create an investment policy statement
2. Analyze and value fixed income securities
3. Analyze and value equity securities
4. Develop and manage a portfolio of debt and equity securities.

This course provides a broad overview of the activities of investment banks, including venture capital fundraising, stock and bond underwriting, mergers and acquisitions, trading, asset securitization and money management.
Outcome: Students will understand how investment banks enhance capital markets by providing financing and investment services to companies, governments and individuals.

This course focuses on how to effectively use Microsoft Excel and its built-in programming language, Visual Basic for Applications (VBA) to build financial models.  It has a prerequisite of Finance 450 and presumes familiarity with basic Excel operations and functions.  The course will model investment, derivative, corporate finance, and risk management problems.  The course is a combination of both lecture and lab.

Scheduled classes are offered on an ad hoc basis. Specific titles, prerequisites and content will vary. 
Outcome:  Students will be able to demonstrate understanding of specialized topics not otherwise covered by department regular course offerings.

Financial mathematics and modeling II is the second in a sequence of two courses.  It is a combination of lecture and lab and will focus on the core mathematical, computational and practical modeling aspects encountered in modern financial applications.  The programming languages of choice will be R and Excel/VBA.  This course has a prerequisite of FINC 450, FINC 452, FINC 620, and ISOM 400.  No prior R programming experience is required but familiarity with Excel/VBA is a pre-requisite.

This course is an introduction to options, futures, forwards and swaps as derivative securities. After an overview of these securities, a detailed examination of the methods of valuing options will be presented. Binomial trees and a discussion of the Black-Scholes option pricing model will be emphasized, followed by insights into option contracts as useful risk management instruments. A brief introduction to stochastic calculus is also given. Stock, index, debt, commodity, foreign currency and futures options are reviewed, and option strategies are analyzed as managerial tools in financial decision-making. Skills developed in this course include analytical and decision-making, creative thinking and communication. Throughout the course the notion of risk both as potential loss and opportunity for gain and its management will be highlighted. Ethical and social dimensions of risk management and the use and abuse of derivative securities will be emphasized to help students become responsible financial managers. The recent credit crisis and its origin in subprime mortgages will be reviewed. Students are encouraged to form teams and work jointly on five sets of homework problems and to also develop trading strategies. The course integrates functional areas in finance, accounting, economics, business ethics and quantitative methods.

The purpose of this course is to help students understand feasible econometric techniques in order to mine information to understand economic and financial patterns and to forecast. A rigorous exposition of the theory behind econometric techniques will help students understand the issues raised in different published papers. Topics of econometric techniques covered in this course include panel data analysis, time-series models, discrete choice models, and methods to identify causality between variables. Practical applications will prepare students to use these methods in their own projects.

Students are introduced to a plethora of financial derivatives, including both exchange-traded and OTC products, and then learn to use these products to hedge interest rate and other risks largely through the study of cases and detailed examples emphasizing the formation and use of synthetic positions.

Outcome: Students will be able to demonstrate an understanding of a wide variety of derivative products, as well as be able to use these products to manage interest rate and other risks.

This is an advanced course in valuation where students are given a thorough grounding in traditional valuation models (DCF and relative valuation) and also introduced to real option methods and ideas; a certain emphasis is placed on the valuation of start-ups and students are introduced to the venture capital markets.
Outcome: Students will be able to demonstrate an understanding of traditional valuation models as well as real options methods and ideas.