Skip over navigation

Core Courses - Master in Finance

The core courses of the Master in Finance provide students with analytical fundamentals of modern finance, both theoretical and empirical.

Fall Semester

FIN 501/ORF 514 – Asset Pricing I: Pricing Models and Derivatives
This course provides an introduction to the modern theory of asset pricing. Topics include: no arbitrage, Arrow-Debreu prices and equivalent martingale measures, security structure and market completeness, mean-variance analysis, Beta-pricing, CAPM, and introduction to derivative pricing.


FIN 505/ORF 505 – Modern Regression and Time Series
This course examines linear and mixed effect models, nonlinear regression, nonparametric regression and classification, time series analysis: stationarity and classical linear models (AR, MA, ARMA), nonlinear and nonstationary time-series models, state space systems, and hidden Markov models and filtering.

Spring Semester

FIN 502 – Corporate Finance and Financial Accounting
This course covers the basics of financial statements, the analysis and recording of transactions, and the underlying concepts and procedures. In addition, a more detailed study of some aspects of financial accounting that have widespread significance is undertaken, such as inventories, long-term productive assets, bonds and other liabilities, stockholders equity, and the statement of changes in financial position. The course provides students with the skills necessary to become informed users of financial statements. Problem sets emphasize an ability to interpret and analyze financial statement disclosures.


FIN503/ORF515 – Asset Pricing II, Stochastic Calculus and Advanced Derivatives
This course begins with an overview of basic probability theory and covers the elements of stochastic calculus and stochastic differential equations that are widely used in derivatives modeling, pricing and hedging. Topics include Brownian motion, martingales, and diffusions and their uses in stochastic volatility; volatility smiles; risk management; interest-rate models; and derivatives, swaps, credit risk, and real options.


FIN504/ORF 504 – Financial Econometrics
This course covers econometric and statistical methods as applied to finance. Topics include measurement issues in finance, predictability of asset returns and volatilities, value at risk and extremal events, linear factor pricing and portfolio problems, intertemporal models of the stochastic discount factor and generalized method of moments, vector autoregressive and maximum likelihood methods in finance, risk neutral valuation in discrete time, estimation methods fo continuous time models, volatility smiles and alternatives to Black-Scholes, and nonparametric statistical methods for option pricing.

"The interdisciplinary nature of Princeton’s MFin program  provided me with the diverse skill set necessary to be successful in my career.”

-- Dennis Walsh, MFin ‘09; Quantitative Investment Strategies, Goldman Sachs Asset Management