shaping new leaders2010-11

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master of finance

MITSloan MasterofFinance

pioneers in finance
MIT Sloan has been a pioneer in finance for over 40 years.Buildingonpathbreaking
workinmarketefficiencies,dynamicportfoliochoice,andlong-runriskmanagement,MITSloan facultycontinuetopushthefrontiersoffinance.Ourgoalistoadvancethefieldoffinance,while generatinginnovationsandadvancedmanagementpracticescriticaltoleadingintodays complexglobaleconomy.

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new questions, answers, leaders

Theworldoffinanceischangingrapidly. Globalfinancialleadersarerethinkingfinancial markets,instruments,andinstitutions. MITSloansMasterofFinance(M.Fin.) programwaslaunchedasadirectresponse tothesenewchallenges.Theprogramis

The MIT Sloan Finance Groupwasformedlongbeforeotherbusinessschoolsrecognized

financeasadistinctareaofstudy.ManyleadersinthefieldconsiderMITthebirthplaceofmodern financeaprovinggroundforbreakthroughsthatcontinuetoshapeboththeoryandpractice.

designedtodevelopinnovativeleaderswho willcreateandbuildthenextgeneration offinancialmarkets,organizations,products andservices.

Financialbreakthroughsdevelopedherecontinuetoinfluencefinancialpractice:

Should the long-run equilibrium trajectory of financial markets be affected by irrational investors? It depends. Using modern theoretical tools shows that even in a perfect market with unrestricted competition, irrational traders may affect asset returns over exceedingly long periods of time. What then determines return on investment? How do financial markets interact with the rest of the economy?
eonidKogan,NipponTelegraphand L TelephoneProfessorofManagement

> the Black-Scholes-Merton derivative pricing model > the Modigliani-Miller theorems on corporate financing and evaluation > the Cox-Ingersoll-Ross model of the term structure of interest rates

We need people in the private sector, but also in finance ministries and central banks who understand how the system works and how to improve it people with strong quantitative skills who understand complex instruments and how risk is transferred. We need people who know how to build models, but also have the breadth of finance knowledge and judgment to make sound abstractions, who know well the models limitations the art of the science. MIT, because of its history, culture, and approach, is the ideal place to take up this task educating the next generation.
RobertC.Merton,ProfessorofFinance

NobellaureateRobertC.MertonrejoinsthefacultyofMITSloanSchool ofManagementthisyeartoteachprimarilyintheM.Fin.program.

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analytically rigorous
TheMITSloanMasterofFinanceisanintensive 12-monthprogramdesignedtoprepare studentsforabroadrangeofcareersinthe financialindustrycareersrequiring analyticalrigorandtheabilitytoinnovate aroundmarketchallenges. courseworkandcareerdevelopmentprograms followedbytwosemestersofrequired andelectivecourses.AllM.Fin.studentsare requiredtocompletecoursesinfinance theoryandcorporateaccounting,anadvanced courseintheanalyticsoffinance,anda proseminar.Proseminarsallowstudentsto M.Fin.studentsarriveatMITSloaninthe summer.Theyplungeintofoundational puttheoryintopracticeonreal-worldprojects directedbyleadersinfinance.

flexible by design
AtMITSloan,concept-basedactionlearningisdeliveredbyofferingexceptionallearningopportunitiesoutside thetraditionalconfinesoftheclassroom.ForM.Fin.students,thisbeginswiththeproseminarsandextends toahostoflaboratorycourses,treks,andspeakereventsatMIT.

MIT Sloan Trading Room Openedin1996asthefirststate-of-the-art tradingroomatauniversity,theroomprovides studentswithhands-onexperienceintrading andfinance,andservesasaresearchfacility

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toshapeinnovationsinthepracticeoffinance. Beyondthetraditionalsynergiesamongeconomics,finance,andaccounting,theprogramallows studentstoexploretheintellectualtiesamongfinanceandmathematics,statistics,operations research,computerscience,andengineering. Lab for Financial Engineering Createdasapartnershipbetweenacademia andindustry,thislabisdesignedtopromote qualitativeresearchinfinancialengineering

Required Fundamental & Advanced Courses FinanceTheoryI&II(SummerTerm) CorporateFinancialAccounting AnalyticsofFinance

Electives PracticeofFinance EntrepreneurialFinance Investments AdvancedCorporateFinance OptionsandFuturesMarkets FixedIncome

Sample General Elective Options FinancialEconomics RealEstateFinanceandInvestment CapitalMarkets TaxesandBusinessStrategy ntrepreneurshipandthe E ManagementofTechnology OperationsManagement nyGraduate-LevelCourseinElectrical A EngineeringandComputerScience, Economics,Management,orMathematics OptionalResearchProjectorThesis

andcomputationalfinance.Itsgoalsareto spuradvancesinfinancialengineeringandto developnewmethodsforteachingstudents andexecutiveshowtoapplyfinancialtechnology incorporatesettings. Treks & Spring Trips Thesetripsofferanopportunitytovisit targetedindustriesindiversemarketsand Speaker Series MITSloaninvitesmorethan400oftheworlds topbusinessleaderstocampuseveryyear. Themostanticipatedofthesevisitsarethetalks givenaspartoftheDeansInnovativeLeader Series,whichfeaturesthemostdynamicmovers andshakersoftheday. tonetworkwithalumniandindustryleaders. Structuredbystudents,eachtripisa partnershipamongtheorganizers,alumni, corporatehosts,andfacultysponsors.

Proseminars (Project-based Subjects) FinancialEngineering FinancialManagement

SecurityDesignandCorporateFinance usinessAnalysisUsing B FinancialStatements MergersandAcquisitions Valuation

MIT Sloans Proseminar in Financial Engineering was an outstanding opportunity to work with leading industry practitioners in solving a real-world industry problem. Our project was working with the manager of MITs endowment to determine the value of the option to reallocate liquid investments during times of crises and how it compared to the illiquidity premium on certain private equity and hedge fund investments. The questions we addressed were on the leading edge of portfolio management and highly relevant.

Bill Porter, SF 67 sparked the digital trading revolution when in 1982 he founded Trade Plus, an electronic brokerage service bureau for stockbrokers, through which the worlds first online trade took place on July 11, 1983. A decade later, realizing he could compete with the major brokerage houses, he launched a subsidiary called E*Trade Securities, Inc., to enable customers all

Shane Torchiana, M.Fin. 10

over the world to make trades in real time.

advancing careers
M.Fin. students understand the evolution taking place in financeand
wanttobeatthecenterofit.MITSloans CareerDevelopmentOffice(CDO)playsavital roleinconnectingstudentswithleading firms,domesticallyandglobally.TheCDOis atruepartnerandresourceforemployers andstudentsalike. M.Fin.studentshaveadedicatedcareerservices advisorinMITSloansCDO.Theybenefitfrom theintegratedcareerplanningandrecruiting servicesofbothMITandMITSloansCareer Developmentoffices.Thisincludesskills assessment,jobsearching,networking,rsum building,interviewpreparationworkshops, andindividualizedcareerplanningadvice.

a global network
Like MIT itself, MIT Sloan draws its power from a paradox:itisaplaceforvisionary
pragmatists,forhands-onthinkersforpeoplewhodreamofchangingtheworldandhavethe driveanddisciplinetomakeithappen.

Class Profile: Male: 67% Female: 33% Age Range: 2028 years Average Experience: 13 months Average Undergraduate GPA: 3.78 GMAT Range: 700770* GRE Quant Range: 700770* GRE Verbal Range: 420730*
*Middle 80%

IntellectuallifeatMITisofthehighestcaliber.Ourcultureisdiverseandcollaborativebydesign. Therearedualcitizens,multiple-languagespeakers,andstudentswitharicharrayoflife, educational,andprofessionalexperiences,alllearningtogetherinanintegratedenvironment.The socialandprofessionalopportunitiesofferedbymorethan60on-campusorganizations,clubs, andconferencesprovideanexcitingwaytobuildrelationshipsaroundsharedinterests.Allthisis surroundedbythearts,sports,andnightlifeofAmericasmostquintessentialcollegecities: CambridgeandBoston.

Undergraduate Majors: Business and Commerce: 20% Computer Science: 7% Economics: 32% Engineering: 22% Humanities/Social Sciences: 2% Math: 14% Science: 3%

TofindyourselfatMITSloanistofindyourselfsurroundedbyremarkablethinkersandleaders fromallovertheworld.M.Fin.studentscontributediversebackgroundsinfinance,mathematics, engineering,computerscience,andotherdisciplineswhattheyallshareisapassionforfinance. M.Fin.graduatesjoinMITsnetworkofover100,000alumnifromaroundtheworld. ALFREDORAMIREz Citigroup Quantitative Trading and Analysis YINGCAO GeneralMotors Treasury Analyst ADAMBADRDOMAT MorganStanley Global Capital Markets SHANA CitigroupBeijing Corporate Finance

join us
Sample Careers
The January Asia Finance Trek is one example of how the CDO can leverage MITs tremendous global relationships to create exciting programs and events for students. Financial institutions that had visited MIT Sloan in the fall hosted students for 12 formal receptions and presentations. We also created a Trek resume book that is shared with companies before the trek, allowing students to set up individual meetings with companies while they are in the region. Treasury Operations & Corporate Finance Asset Management Investments oundationsofInstitutional F PortfolioManagement lternativeInvestments:PrivateEquity A &HedgeFunds Mergers&Acquisitions EntrepreneurialFinance Valuation Proseminar:FinancialManagement Glenn Cunningham, Master of Finance Advisor, CDO Risk Management & Insurance SecurityDesign&CorporateFinancing InternationalFinancialManagement AnalyticsofFinancialEngineering FinancialCrisis AdvancedCorporateRiskManagement Investment Banking

201011 Tuition and Costs (for one student for one year) Tuition.......................................... $72,000 Books & Supplies ...............1,800 Computer........................................3,000 Food ......................................................... 4,500 Fees ................................................................... 272 Personal* ......................................... 2,850 Housing ...........................................13,500 Transportation ....................... 2,496

Sample Courses
Options&FuturesMarkets InvestmentBanking Proseminar:FinancialEngineering oreignExchange,Commodities, F &FixedIncomeMarkets

Theapplicationprocessisdesignedtoallow youtointroduceyourselftousandtohelpus understandhowyouthink,lead,andpursue yourgoals.Theapplicationincludes:yourcover letter,threeessays,academictranscripts,three recommendations,andGMATorGREresults.

funding
ThegoaloftheAdmissionsOfficeistoadmit themostqualifiedcandidatesregardless oftheirfinancialmeans.Educationalloans areavailable.

Total ............................................. $100,418

*Includes medical insurance

Formoreinformationabouttheprogram, application,orfunding,pleasevisit: http://mitsloan.mit.edu/mfin/ .

Application Deadline: November 2, 2010

Writing: Patty Robertson & Pam Spencer, Editing: Linda Walsh, Design: Marc Harpin, Rhumba, Photography: Stuart Darsch, L. Barry Hetherington, Sarah Foote, Printing: Universal/Millennium

MIT Sloan School of Managements mission is to develop principled, innovative leaders who improve the world and to generate ideas that advance management practice.

TheMassachusettsInstituteofTechnologyiscommittedtotheprincipleofequalopportunityin educationandemployment.TheInstitutedoesnotdiscriminateagainstindividualsonthebasisof race,color,sex,sexualorientation,genderidentity,religion,disability,age,geneticinformation,veteran status,ancestry,ornationalorethnicoriginintheadministrationofitseducationalpolicies,admissions policies,employmentpolicies,scholarshipandloanprograms,andotherInstituteadministered programsandactivities,butmayfavorUScitizensorresidentsinadmissionsandfinancialaid.* TheVicePresidentforHumanResourcesisdesignatedastheInstitutesEqualOpportunityOfficer andTitleIXCoordinator.InquiriesconcerningtheInstitutespolicies,compliancewithapplicable laws,statutes,andregulations(suchasTitleVI,TitleIX,andSection504),andcomplaintsmay bedirectedtotheVicePresidentforHumanResources,RoomE19-215,617-253-6512,ortothe CoordinatorofStaffDiversityInitiatives/AffirmativeAction,RoomE19-215,617-253-1594.Inthe absenceoftheVicePresidentforHumanResourcesortheCoordinatorofStaffDiversityInitiatives/ AffirmativeAction,inquiriesorcomplaintsmaybedirectedtotheExecutiveVicePresident, Room3-211,617-253-3928,ortotheDirectorofLaborandEmployeeRelations,RoomE19-235N, 617-253-4264,respectively.Inquiriesaboutthelawsandaboutcompliancemayalsobedirected totheAssistantSecretaryforCivilRights,USDepartmentofEducation.
* heROTCprogramsatMITareoperatedunderDepartmentofDefense(DOD)policiesandregulations,anddonot T complyfullywithMITspolicyofnondiscriminationwithregardtosexualorientation.MITcontinuestoadvocatefor achangeinDODpoliciesandregulationsconcerningsexualorientation,andwillreplacescholarshipsofstudentswho loseROTCfinancialaidbecauseoftheseDODpoliciesandregulations.

MITSloanSchoolofManagement AdmissionsOffice 50MemorialDrive,SuiteE52-126 Cambridge,MA02142-1347 Telephone:617.258.5434 Facsimile:617.253.6405 Email:mfinadmissions@sloan.mit.edu http://mitsloan.mit.edu/mfin/