Courses, Pregraduate Business Administration| Northwestern University School of Professional Studies - Northwestern School of Professional Studies

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Finance courses carry business credit.

FINANCE 202-DL : Introduction to Finance

Description

This course will focus on the quantitative tools primarily used in the field of finance. We will use Excel to derive our computational solutions as it is a tool used frequently in the finance field. We will put heavy emphasis on the mathematics of interest rates, including the tools used to value common stock and fixed rate bonds. We will discuss how rates of return for these instruments are measured. We will then look at the capital budgeting process and learn how managers determine in which projects to invest a firm’s limited resources. We will also study the probabilistic and statistical tools necessary to understand how investors and financial economists evaluate risk. Primary emphasis will be on an intuitive understanding of portfolio theory and its impact on estimating the expected return on an asset given its systematic risk through the Capital Asset Pricing Model. We will also consider the contributions of Behavioral Finance proponents on the valuation of financial assets.

Prerequisite: While there is not a formal prerequisite for this course, it is helpful for students to have a basic understanding of algebra and statistics, especially concepts such as standard deviation, correlation, covariance and regression. Also, some knowledge of accounting is helpful, such as familiarity with balance sheets, cash flow statements, and income statements.

The course is conducted completely online. A technology fee will be added to tuition.