Finance course Syllabus

This MicroMasters® program offers a rigorous, graduate-level curriculum in modern finance, designed to be completed over approximately 32–40 weeks. Each course module requires 8–10 weeks of dedicated study with an estimated 10–12 hours per week, combining theoretical concepts, quantitative modeling, and practical applications in finance. The program concludes with a comprehensive proctored capstone exam. Learners should expect a highly analytical and mathematically intensive experience aligned with MIT's academic standards.

Module 1: Foundations of Modern Finance

Estimated time: 80 hours

• Understand risk and return trade-offs in financial markets
• Study portfolio theory and mean-variance optimization
• Learn the Capital Asset Pricing Model (CAPM)
• Analyze diversification and asset pricing frameworks

Module 2: Corporate Finance

Estimated time: 80 hours

• Explore capital budgeting and investment decisions
• Understand cost of capital and capital structure theory
• Analyze dividend policy and firm valuation methods
• Study financial decision-making within corporations

Module 3: Derivatives Markets

Estimated time: 80 hours

• Examine futures, forwards, options, and swaps
• Learn binomial option pricing and the Black-Scholes model
• Understand hedging strategies and risk management techniques
• Analyze volatility and arbitrage-free pricing concepts

Module 4: Risk Management & Financial Engineering

Estimated time: 80 hours

• Study financial risk measurement frameworks
• Understand Value-at-Risk (VaR) and portfolio sensitivity (Greeks)
• Apply stochastic processes in financial modeling
• Explore quantitative methods used in modern financial institutions

Module 5: Capstone Examination

Estimated time: 20 hours

• Comprehensive review of all program content
• Proctored assessment covering asset pricing, portfolio management, and derivatives
• Validation of mastery in quantitative finance and investment decision-making

Prerequisites

• Strong background in mathematics and statistics
• Familiarity with basic economic principles
• Undergraduate-level calculus and probability knowledge

What You'll Be Able to Do After

• Evaluate investment opportunities using quantitative asset pricing models
• Design and manage optimal portfolios using modern portfolio theory
• Price and hedge derivatives using the Black-Scholes and binomial models
• Apply risk management frameworks such as VaR and Greeks in financial contexts
• Earn a credential that supports advancement in roles like Quantitative Analyst, Portfolio Manager, or Risk Specialist