Courses
Core Courses
ECO 2060H Economic Theory -- Microeconomics
This course focuses on theories and techniques of decision-making by households, and firms. It examines the problem of measuring economic welfare, and the merits and shortcomings of the market mechanism in promoting it, although a basic element of the course is the precise analysis of quantitative relationships. This course is designed primarily for M.A. students who do not wish to continue to the Ph.D. program.
ECO 2061H Economic Theory -- Macroeconomics
The objective of the course is to introduce students to the analysis of macroeconomics at the graduate level, with attention to the role of credibility and other current developments. The course emphasizes applied issues, such as the potential role for stabilization policy. This course is designed primarily for M.A. students who do not plan to continue to the Ph.D. program.
ECO 2408H Econometrics for MFE Students
This course covers the development and application of statistical techniques in testing economic theory. It focuses on parameter estimation and hypothesis testing within the framework of the classical linear regression model, and on the analysis of the problems which arise when the basic assumptions are violated. Considerable attention is devoted to applications of the techniques.
ECO 2503H Financial Economics I for MFE Students
This course is designed to introduce students to certain areas of financial economics. It attempts to develop a theoretical foundation for the analysis of the valuation of financial claims, the financing and investment decisions of the firm, and the efficiency of competitive markets in distributing investment capital among firms and in allocating the risk of return from investment among individuals.
MGT 2306H Options and Futures Markets
This course covers forward, futures, swap, and option contracts. It deals with how the contracts work, how they are used, how they are valued, and how financial institutions hedge their positions in the contracts. The topics covered include Black-Scholes pricing, the use of binomial trees, and delta-gamma-vega hedging.
MGT 2300H Corporate Financing
An investigation of the framework underlying corporate financing decisions. Among the problems analyzed are the capital structure of firms, the maturity structure of debts, dividend policies, share valuation models and alternative financing strategies and instruments.
MGT 2302H Security Analysis and Portfolio Management
An examination of investment policies of individuals and institutions. Topics include security valuation models, utility theory, efficiency of capital markets, portfolio construction and performance measurement.
Suggested Electives for MFE Students
Below is a list of suggested electives for MFE students. These courses are good complements to the MFE core courses.The electives below also represent courses which MFE students in the past have selected. All elective courses should be approved by the Director of the Master of Financial Economics program.
ECO 2411H Financial Econometrics
This course provides an introduction to the econometrics used in empirical finance. Topics will include parametric and nonparametric models of volatility, evaluation of asset pricing theories, and models for risk management, and transactions data. The course will emphasize estimation and inference using computer based applications.
ECO2303H International Macroeconomics
This course deals with contemporary issues in international monetary economics and macroeconomic policy in open economies, like Canada’s. The focus is on forces determining interest rates and exchange rates, inflation and unemployment. Government policy in relation to financial markets will be analysed.
ECO 2500H/ECO 2501H Monetary Theory I & II
These two half courses constitute the core offering in Monetary Theory, and the content of each is determined at the beginning of the session. The major theme is an examination of the relationship between money, prices, economic activity, and welfare. Topics include theoretical and empirical work on the demand for and the supply of money, the definition of money, the term structure of interest rates, efficient capital markets, targets and indicators of monetary policy, nominal interest rates, price expectations, the role of fiscal and monetary policy in economic stabilization, theoretical and empirical research on short-term and long-term Phillips curves.
ECO 2504H Financial Economics II
This course selects topics in current advanced research in financial economics. Theoretical and empirical models dealing with economic aspects of financial markets, intermediaries, and the financial decisions of firms are examined. Financial systems in developing as well as developed economies are examined.
ECO2505H Macro Models and Forecasting
The course examines macroeconomic models and their applications in simulation analysis and forecasting. Detailed examination is made of the macroeconometric model maintained at the University of Toronto and students gain 'hands-on' experience in its construction and use. The course also studies the various important criticisms of macroeconometric models and briefly surveys alternative forecasting methods.
ECO2506H Economics of Risk Management
This course focuses on the role of risk management in both private and public sectors. It includes a discussion of why firms and government should hedge financial risks, the individual and social gains of financial risk management, the identification and quantification of financial risks (including Value-at-Risk measures) and how derivative securities can be used for financial risk management.
ECO 2802H Economics Inside Organizations
This course examines selected research on compensation, incentive issues, cooperation and the allocation of authority in hierarchical organizations.
ECO3501H Economics Analysis of Law
This course applies economic analysis to a number of areas of the law. Examples of topics include property rights and the Coase theorem, torts and liability rules, the assessment of damages, contracts, product liability, bankruptcy law, crime and law enforcement, and family law.
ECO3504H International Trade Regulation
This course, offered jointly with the Faculty of Law, will explore the regulatory framework governing international trading relations. The following topics will be examined: international economic institutions, the Bretton Woods System, the GATT, international regulation of tariffs, national tariff administration, the principles of nondiscrimination (most-favoured nation and national treatment) with a special focus on the case for bilateral Canada-U.S. free trade, antidumping regulation, subsidies and countervailing duties, safeguards, voluntary export restraints, and adjustment assistance. The course will strongly emphasize the institutions and political economy of international trading relations and how economic and political forces have shaped current regulatory policies and may shape future policies.
ECO4050H - TOPICS IN RISK MANAGEMENT
This is course intended to drill down into details of some important and urgent issues concerning contemporary financial industry. The topics may include: Economic Capital and Stress Testing, Business Performance Measurement, Emerging Capital Markets and Risks, Innovative and Exotic Derivatives in capital Markets and Risks; Asset securitization and Risks; Hedge Funds and Risks. Please note the topics chosen for each term are subject to changes.
The instructor will use the real world problems for research projects and case studies required by the course. This would encourage the students to take initiatives in researching, formulating and resolving the issues, reasoning through to obtain buy-in from a panel consisting of industrial practitioners. This is a new course and designed to best equip the participants with the most current knowledge and in-depth understanding in the risk management when entering the mainstream financial institutions.
Suggested Management Course Electives
MGT2011H International Business
In this course we address problems the multinational enterprise (MNE) must confront in order to successfully do business in the international marketplace, including international trade, international investment, and managing a global workforce. Successful students will learn to analyze the problems facing MNEs through mastery of concepts and their application to contemporary organizations. Topics include:
- Globalization
- Political and Cultural Environments
- International Trade
- International Markets & Political Risk
- Entry Strategies in International Markets
MGT 2203H Financial Reporting and Analysis (Financial Accounting)
This is a course for students who are interested in understanding contemporary accounting and reporting problems as they relate to management decisions. The problems of financial accounting and reporting, and the effects on financial reports of variations in accounting procedures, are examined from a corporate management perspective.
MGT 2305H International Financial Management
This course focuses on the international dimension of financial management. It aims to develop a working knowledge of the institutional features and interdependence of international financial markets so that the benefits and costs of international investing and financing can be evaluated. There is a particular emphasis on measuring exposure to risks associated with multi-currency business and managing those risks. Topical issues such as exchange rate crises are also discussed.
MGT 2307H Advanced Derivatives
This course covers the mathematics underlying the pricing of derivatives and the numerical procedures that are used to implement derivatives pricing models. It includes in-depth material on exotic options and interest rate derivatives.
MGT2308H Financial Risk Management
This course covers ways in which financial institutions, corporations, and fund managers can quantify and manage risks. It covers the calculation and use of value at risk, ways of forecasting volatilities and correlations, the quantification of credit risk, and credit derivatives.
MGT 2309H Mergers and Acquisitions
The objective of this course is to develop an understanding of the strategic asset acquisition and divestiture process. Firms constantly make small-scale decisions to make, lease or buy certain assets. The same ideas can be applied to larger scale assets and the major product divisions of the firm. These decisions involve mergers and acquisitions of existing firms, as well as spin-offs and divestitures of existing assets. This course will analyze these decisions from a financial perspective emphasizing valuation frameworks.
MGT 2315H Special Topics in Finance
Topics vary from year to year depending on the instructor