Advanced Valuation and Risk Management

This unit develops applied corporate finance skills in valuation, risk management, portfolio optimization, and capital-allocation decision making. Students will build on foundational concepts to forecast cash flows, value securities and firms, evaluate liabilities and capital structure, and design hedging and diversification strategies to prepare for integrative, strategic finance analysis in the final unit.

Learning Objectives

• Analyze risk and return trade-offs using statistical measures, portfolio theory, and optimization techniques to construct and justify diversified portfolios
• Apply valuation methods—including discounted cash flow, comparable company analysis, and bond valuation—to determine the value of securities and estimate business worth
• Demonstrate the ability to identify, measure, and manage market, credit, interest-rate, currency, and derivative risks by recommending appropriate hedging and funding strategies
• Evaluate capital allocation, capital structure, and owners’ equity implications, incorporating assessments of earnings quality, liabilities, and behavioral biases in corporate financial decisions