The master of science in finance program at the Segal Graduate School equips students with the tools needed to manage investments and risk in a rapidly changing world. Designed to meet the increasing global demand for skilled risk management and investment management professionals, the program provides a unique blend of rigorous training and real-world experience. Visiting finance professionals contribute an invaluable practical component to the program. Students also have an unparalleled opportunity to gain hands-on experience by managing an investment portfolio with a market value in excess of $10 million.
Applicants should also refer to the program website www.beedie.sfu.ca/MSc-Finance.
Applicants must satisfy the University admission requirements as stated in Graduate General Regulations 1.3 in the SFU Calendar. An undergraduate degree in business, commerce, economics, mathematics, physics, or other suitable quantitatively oriented programs is required. Candidates holding a professional designation such as a PRM or FRM and evidence of strong mathematics competency would also be ideal candidates. Students with a strong mathematical aptitude who have completed the graduate diploma in business administration offered by the University would be qualified for admission consideration.
This program consists of course requirements and a project for a minimum of 51 units. Students choose to complete either the investment management stream or the risk management stream. Other graduate courses may be substituted for the courses listed at the discretion of the academic director.
Students must complete all of
An introduction to elements of mathematics and computational techniques employed in finance and financial risk management. An introduction to programming tools, e.g. VBA, Matlab, and an object oriented programming language (e.g. C++).
An introductory course in the theory of finance and investor behaviour, financial decision-making under uncertainty as well as capital market equilibrium.
Financial econometrics for testing asset pricing models and portfolio performance measurement.
A survey of asset pricing models including linear factor models, CAPM, and arbitrage models. Multi-period consumption, portfolio choice, and asset pricing models; continuous-time consumption and portfolio choice; behavioural finance and asset pricing; asset pricing with differential information.
An introduction to portfolio management, equity valuation, debt valuation, and performance and risk measurement.
The term structure of interest rates, fixed income returns, yield-spread analysis, sources of risk in fixed income securities, and embedded options.
An introductory course in derivative securities that includes pricing as well as the use of derivative securities in portfolio management and structured transactions.
Provides an understanding of the linkages between financial statements such as annual reports and prospectuses including the three principal financial statements (balance sheet, income statement and cash flow statement) and how useful information about a company can be extracted from them.
Computational tools for financial analysis, financial engineering and risk management.
An assessment of the risk management practices of financial institutions. A survey of best practices with respect to enterprise risk management, including risk architecture and risk communication and disclosure within the organization.
Special Topics for Business Administration.
Provides students with a review of the fundamentals of the mathematics that they will be expected to know to be successful in the broader M.Sc. in Finance program. Many of the examples and exercises used will be motivating using common problems encountered in portfolio construction and analysis, econometrics, and option pricing.
Provide students with a review of the fundamentals of random variables and statistics that they will be expected to know to be successful in the broader M.Sc. in Finance program. Covering topics such as regression, estimation, simulation and hypothesis testing, the course examples and exercises provide a foundation on which to build a greater understanding of economic analysis and forecasting.
and nine units from the investment management or risk management stream
Investment Management Stream
Assumptions underlying the Capital Asset Pricing Model are relaxed to allow for specific views on asset returns, and to allow for the expected future consumption needs of a given investor to be considered at a strategic level.
The valuation of equity securities, including company and industry analysis, financial statement analysis and valuation models.
Four main topics are covered: portfolio theory, asset pricing, market efficiency, and performance measurement. The first two are cornerstones of financial economics, as, for the most part, portfolio selection models form the basis of models of asset pricing. The third cornerstone is the efficient markets hypothesis, which asks whether prices reflect information. Finally, asset pricing models provide the basis for many risk-adjusted measures of the performance of mutual, pension, and hedge funds.
Risk Management Stream
Credit risk management with emphasis on portfolio models, including probability of default and loss given default models, credit capital allocation, active portfolio management, credit derivatives, and structured transactions.
Value at risk, advanced market risk models, statistical models, stress testing, scenario analysis, and risk-adjusted performance measurement.
and a project
Students are expected to complete the program requirements within four terms.
Student Investment Advisory Service (SIAS)
Students have the opportunity to acquire real world investment, risk management and compliance experience through an optional course called the Student Investment Advisory Service. Students must be enrolled in BUS 880 no later than the second term of enrollment and throughout the program in order to complete the course.
Students in this course will manage the Student Investment Advisory Service (SIAS) fund which includes $10 million of the university's endowment portfolio, funded by contributions from HSBC Bank Canada and Lohn Foundation. SIAS fund follows a value investing mandate set by the client (SFU) through a conservative investment policy statement. The fund is composed of four actively managed asset classes: Cash, Canadian Equity, Global Equity and Fixed Income. SIAS fund reports monthly compliance and performance to the client and faculty advisors. Additionally, performance review presentations are held on a quarterly basis. Students must be enrolled in BUS 880 no later than the second term of enrollment and throughout the program in order to successfully complete the course.
Academic Requirements within the Graduate General Regulations
All graduate students must satisfy the academic requirements that are specified in the Graduate General Regulations, as well as the specific requirements for the program in which they are enrolled.