Academic Programs Catalog

The Eli Broad College of Business and The Eli Broad Graduate School of Management

Department of Finance

Naveen Khanna, Chairperson

 


Undergraduate Programs

The Department of Finance offers a Bachelor of Arts degree program with a major in finance.

Finance majors can concentrate in (1) corporate finance and (2) financial markets and institutions.  The former involves the financing and investment activities of an organization as well as its governance, while the latter explores investment decisions, portfolio strategies and management, and market behavior.  To ensure that they gain a broad perspective, students are advised to take courses in both areas and are required to take an integrative capstone course.

Qualified students are encouraged to pursue honors courses, study abroad programs, non-credit internship opportunities with national and international corporations, and cross-college specializations such as international business and entrepreneurship.

 


Finance

Finance encompasses business financial administration, management of financial institutions, investments, financial markets, and the management of risk. Business financial administration includes obtaining external funds in the money and capital markets, selecting and evaluating investment projects, coordinating the flow of funds from operations, and determining the benefits to be returned to suppliers of capital. An understanding of financial concepts and practices along with knowledge of the instruments and participants in the financial markets is vital to sound financial decision making.

The study of financial institutions involves analyzing the management of commercial banks, savings and loan associations, credit unions, insurance companies, and pension funds. The role of these institutions in the economy is examined. Financial policies and strategies in an increasingly competitive institutional marketplace are emphasized.

The field of investments involves the analysis and selection of securities with special emphasis on stocks and bonds. The role of these instruments in portfolios of individuals and financial institutions is explored.

Financial markets represent the environment within which corporations, financial institutions, and investors create financial assets and liabilities. The nature of the various financial instruments is examined, as well as market innovations and structural changes.

The finance major includes a course in intermediate accounting in addition to courses in finance. The program provides a valuable foundation for initial employment and continued career development in business administration. Employment opportunities exist with industrial firms, public utilities, commercial banks, insurance companies, brokerage firms, credit unions, savings and loan associations, and agencies of local, state, and federal government.

Requirements for the Bachelor of Arts Degree in Finance

  1. The graduation requirements of the University as described in the Undergraduate Education section of this catalog; 120 credits, including general elective credits, are required for the Bachelor of Arts degree in Finance.

    The completion of Mathematics 103 and 124 [referenced in item 2. below] may also satisfy the University mathematics requirement.

    The University's Tier II writing requirement for the Finance major is met by completing Finance  414.  That course is referenced in item 3. a. (1) below.
  2. The requirements of The Eli Broad College of Business for the Bachelor of Arts degree in the majors that comprise the Business Administration Programs.
  3. The following requirements for the major:
                   
    a. Major Field of Concentration. A minimum grade-point average of 2.0 in the courses that are listed below.Students may elect to complete more than three of the courses that are listed in item 3. a. (2) below with the understanding that the grades earned in such courses will be included in the computation of the grade-point average of courses in the Major Field of Concentration.  
      (1) All of the following courses (9 credits):  
        ACC 305 Intermediate Accounting for Finance Majors 3
        FI 312 Introduction to Investments 3
        FI 414 Advanced Business Finance (W) 3
      (2) Three of the following courses (9 credits):  
        FI 413 Management of Financial Institutions 3
        FI 451 International Financial Management 3
        FI 455 Computer Applications in Financial  Modeling 3
        FI 457 Security Analysis 3
        FI 473 Debt and Money Markets 3
        FI 478 Investment Strategies and Speculative Markets 3
        FI 491 Topics in Finance 3
        Students may reenroll in Finance 491 for a maximum of 9 credits.  

 


Minor in Insurance and Risk Management

The Minor in Insurance and Risk Management, administered by the Department of Finance, teaches the skills necessary for students seeking careers as underwriters, claim adjusters, agents, or brokers in the insurance organization, as well as careers in risk management in financial institutions. Students will learn how to quantify, manage, and price risk, while learning the structure, evolution and regulation of the finance and insurance sector of the economy.

The minor is available as an elective to students who are enrolled in bachelor’s degree programs at Michigan State University. With the approval of the department and college that administer the student’s degree program, the courses that are used to satisfy the minor may also be used to satisfy the requirements for the bachelor’s degree.

Admission

Students who plan to complete the requirements of the minor should consult the undergraduate adviser in the Department of Finance to apply. To be admitted to the minor students must have completed two of the following courses with a grade-point average of 3.0 through selection of a course from item a. and a course from item b.:

a. STT 315 Introduction to Probability and Statistics for Business 3
STT 351 Probability and Statistics for Engineering 3
STT 421 Statistics I 3
STT 441 Probability and Statistics I: Probability 3
b. FI 311 Financial Management 3
FI 320 Introduction to Finance 3

Requirements for the Minor in Insurance and Risk Management

Students must complete 15 credits from the following:
 
1. At least two of the following courses (5 or 6 credits):
EC 301 Intermediate Microeconomics 3
EC 330 Money, Banking, and Financial Markets 3
FI 312 Introduction to Investments 3
FI 321 Theory of Investments 3
FI 413 Management of Financial Institutions 3
FI 414 Advanced Business Finance (W) 3
MKT 319 Marketing Research 3
SCM 475 Supply Chain Decision Modeling 2
2. All of the following courses (9 credits):
FI 380 Principles of Insurance and Risk Management 3
FI 480 Financial Risk Management 3
FI 481 Crises, Insurance, and Risk Management 3


 

Graduate Study

The Department of Finance offers a Master of Business Administration degree program with a concentration in Finance. For information about that program, refer to the Master of Business Administration statement in the Broad College section.

The department also offers a Master of Science degree program in Finance.  That program is described below.

In addition, the department offers a Doctor of Philosophy degree program with a major in Finance.  For information about that program, refer to the Doctor of Philosophy statement in the Broad College section.

 


Finance - Master of Science

The Master of Science degree with a major in finance provides graduate-level financial training to individuals with career experience and an undergraduate degree in finance or a related field. The program is only available under Plan B (without thesis). The curriculum is flexible and allows students to choose courses that will meet their specific professional needs. Courses are offered in all of the major areas of finance including financial management, financial institutions, investments, and international finance.

Admission

To be considered for admission to the Master of Science degree in Finance an applicant must:

  1. Submit to the Department of Finance a completed application packet that is available from the department.
  2. Have an undergraduate degree from a recognized educational institution.
  3. Have at least two-years of full-time work experience after earning the bachelor’s degree.

Admission to the program is competitive and is based on the applicant’s overall record. Although not required, it is recommended that students take either the Graduate Management Admission Test (GMAT) or the Graduate Record Examination (GRE) General Test. Strong scores on these tests raise the likelihood of admission. International students must take the Test of English as a Foreign Language (TOEFL).

In addition to meeting the requirements of the university and The Eli Broad College of Business and Graduate School of Management, students must meet the requirements specified below.

Requirements for the Master of Science Degree in Finance

The program is available under Plan B (without thesis). A total of 30 credits are required for the degree. The student’s program of study must be approved the program director.

               
1. Complete one of the following courses: (3 credits):  
  FI 801 Managerial Finance 3
  FI 980 Theory of Finance 3
  Students who pass a departmental waiver examination for Finance  
  801 or 980 will not be required to complete Finance 801 or 980.  
2. Complete at least 15 credits of 800-900 level courses offered by the Department of Finance.  
3. Complete at least 12 credits of courses in finance or in fields related to finance including other business disciplines, economics, statistics,  and mathematics. At least 6 credits must be at the 800-level or above.  
4. Pass a final certifying examination on the course work.  

Academic Standards

Students must maintain a cumulative grade-point average of at least 3.25 in all graduate courses.