LSE 2014 MSc Programmes Brochure

8/12/2019 LSE 2014 MSc Programmes Brochure

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2013/14

FinanceMasters

Programmes



Department of Finance Masters Programmes 2013/14



ContentsWelcome from the Head of Department 4

Department of Finance 5

The Department and the FMG 6

What we offer 7

The LSE advantage 9

MSc Finance (Full-time) 10

MSc Finance and Private Equity 18

MSc Finance and Economics 26

MSc Risk and Finance 34Admissions 42

Careers 44

Faculty 46

LSE felt like an

environment whereI could be challenged,I could learn, expandmy horizons and bemy best.

Trish Amoah-NtimMSc Finance and

Private Equity

Department of Finance Masters Programmes 2013/14 3



I’ve always thought of LSEas an incredibly interestingand exciting place to

teach, research and study.It’s very different to mostuniversities – you might passa government minister in thecorridor or get into a lift witha CEO of a bank. The schoolis a hive of activity, bothbecause of its location andits international reputation,from which students directlybenefit. Of course, in terms

of finance, LSE is extremelywell located, being on the doorstep of one of the world’s majorfinancial centres. As such we can organise seminars, publiclectures and participatory events of any kind very easily, bringingin the very best practitioners. LSE’s events programme, throughthe Department and also more widely in the School, is second tonone, globally.

As with all teaching at LSE, the Department’s programmes areextremely rigorous. The process of learning is one of beingchallenged by ideas; there’s no learning by rote. We place a greatdeal of emphasis on research-based learning that is also relevant

to the real world.

The student body at LSE is tremendously international. It isthe most international student body in the world and theDepartment of Finance very much reflects that; we have a terrific

group of students and faculty from all corners of the globe.When selecting students we look for very smart people withexcellent academic backgrounds; but in addition we also look forstudents that have other things about them: who have initiative,the ability to engage with other students and the ability toexpress themselves. We want our students to develop here, not

just academically but also as people and we place a great deal ofemphasis on that.

I hope that this brochure gives you a flavour of what theDepartment of Finance at LSE can offer you. I very much lookforward to meeting some of you in September 2013.

Professor David WebbHead of Department

Welcome from the Headof the Department

Department of Finance Masters Programmes 2013/14Department of Finance Masters Programmes 2013/14



Department of FinanceThe Department of Finance is one of the largest finance

groups in Europe and is recognised as being one of the leadingfinance research groups in the world. We are a research-leddepartment that is devoted to excellence in all fields of finance;our world-leading faculty operate at the forefront of their fieldsinternationally and we have a pre-eminent reputation for bothour consistently excellent and cutting-edge research and rigorous,innovative and applicable taught degree programmes.

The development of the Department in recent years has beenclosely linked to the significant growth in finance research andteaching at LSE, benefiting from the pioneering work of the LSE’sFinancial Markets Group and Department of Economics, as well

as the growth of London as one of the world’s financial capitals.As a result, we offer our diverse and international student body arange of academically challenging finance programmes that equipthem with the tools to become future leaders in the financesector and in academia.




The Department and the Financial Markets GroupThe research activities of the Department are closely linked to

the Financial Markets Group (FMG). Since its founding in 1987by Charles Goodhart, Mervyn King and David Walker, the FMGhas become one of the leading centres in Europe for academicresearch into financial markets with strong links to the City andbeyond. Its activities include weekly research seminars, fundedresearch projects, post-doctoral research and a programme ofmajor conferences and academic visitors that reflect its world-class prominence and reputation. The FMG is currently headedby Professor Christopher Polk, who is also a member of Financefaculty. Recently, the FMG and the Paul Woolley Centre for theStudy of Capital Market Dysfunctionality (headed by Professor

Dimitri Vayanos, also a member of Finance Faculty) wereparticularly involved in supporting and contributing to LSE’smajor report into The Future of Finance. This is just one of manyexamples of ways in which our research continues to stimulate

and lead debate in the finance field. The work of the FMG was

a springboard for the founding of the Department of Finance,and its research-focused ethos is still the foundation of all thatwe do.

Alongside the FMG, the Department maintains strong links withresearch centres at other institutions around the world, as wellas with the wider financial sector. Our proximity to the City andour reputation for excellence means that we are regularly ableto attract high-profile professionals and sector leaders to speakat Department events, and to participate in conferences andpractitioner seminars. This, in conjunction with the remarkablyrich and stimulating events programme offered by LSE, enablesus to give our students exposure to a quality of speakers that isunsurpassed in the world.

We teach nance differently from other places. We want our students tounderstand the foundations of nance, to be able to do some modelling andto understand where the formulas come from. We don’t want them just tomemorise formulas. I can give the example of a car; I want students to beable to drive it, but also to open the hood and understand how the engineworks, how to take it apart and then rebuild it.

Dr Jean-Pierre Zigrand

Reader in Finance




The academic excellence of the training that we provide is also

recognised beyond the academic community. Our studentsare highly sought-after by the leading financial institutions andare very successful at finding employment after their studies,of which you can see examples in the careers section at theback of this brochure. We also attract funded support for ourprogrammes and students from external organisations; our MScFinance and Private Equity programme was established withgenerous support from Abraaj Capital, and our MSc Risk andFinance programme has close links with Deutsche Bank.

It is the combination of these factors, founded first andforemost on principles of academic excellence, which attractsthe brightest students from around the world to study financein the Department and benefit from our ethos of lively debate,penetrating enquiry and academic rigour.

LSE Events page: lse.ac.uk/publicEvents/eventsHome.aspx

FMG: lse.ac.uk/fmg/home.aspx

What we offerThrough both world-class teaching and teaching resources the

Department offers students a stimulating and diverse environmentin which to pursue postgraduate studies in Finance, centred on fivedynamic Masters Programmes and a doctoral programme.

Every year, we accept around 300 of the most highly capablestudents on to our taught Masters Programmes: MSc Finance (Full-time and Part-time), MSc Finance and Economics, MSc Finance andPrivate Equity, and MSc Risk and Finance. Each degree providesa structured programme of study based on at least one bespokecore course and various optional courses. In each case, the corecourse(s) provide the intellectual foundation of the degree, afterwhich students have the opportunity to tailor their learningto support their own career or research interests through theselection of optional courses, which are detailed in the followingProgramme-specific pages.

The foundation of all our teaching is an academically rigorousapproach which combines the examination of theoretical conceptswith practical real-world applications. This is achieved first andforemost through the high quality and academic rigour of ourteaching, which is provided by Faculty members who are world-leaders in their field and who also maintain strong links with thefinance sector. Additionally, students across all our programmes canexpect to benefit from participation by visiting academics and financesector professionals in the form of guest lectures and practitionerseminars. These not only offer important networking opportunitiesbut also provide valuable insights into the real world that help tocontextualise key topics covered in class. The combination of thecutting-edge research of Faculty members with the participation offinance professionals enables our Programmes to keep up-to-datewith the most recent developments in the sector while maintainingtheir strong academic focus. As a result, our Masters programmesprovide students with a rigorous and respected postgraduate degreewhich acts as the ideal foundation from which to pursue a career infinance or in further academic research.




The Department works hard to provide a supportiveenvironment for postgraduate study, which balances thisacademic training with a strong emphasis on supporting ourstudents’ personal and professional development. At the start

of their studies, all students are allocated an Academic Adviseror Programme Advisor from within the Department of FinanceFaculty, to provide academic and pastoral guidance throughoutthe course of their Programme. Each programme also hasa dedicated Programme Manager to provide administrativesupport and advice, and all our students have access to a fullrange of other facilities, including dedicated computing facilitieswithin the Department, LSE’s virtual learning environment andbespoke study materials for each course.

Additionally, we offer a stimulating programme of non-academicevents and activities for all our students. We place a particularlystrong emphasis on career guidance and typically provideDepartment-wide career development sessions and networking

events alongside each Programme’s practitioner seminars andguest speaker lectures. We also arrange for our students tohave access to a finance careers counsellor, for tailored careerguidance relating to the finance sector.

In conjunction with this, we organise a range of social eventsthroughout the year which are designed to give students thechance to get to know their classmates and to network withstudents on other Finance Programmes. The highlight of theseactivities is our annual graduate residential weekend, which isattended by Finance Faculty and approximately 150 studentsfrom all our Programmes.

When they say that it’s diverse, they really mean it! We are all from differentplaces and backgrounds, and we work really well together. I’ve met peoplehere that I hope I stay friends with for life.

Mariam Kaan

MSc Finance and Private Equity





The LSE advantageAll our students benefit from LSE’s status as a world-class socialsciences institution, which attracts some of the best researchersand teachers in their respective fields. Located in the heart ofcentral London, the stimulating environment of LSE provides arich intellectual challenge for students and access to pre-eminentresearchers and speakers. A regular programme of conferencesand public lectures attracts academic and political leaders fromacross the globe and provides a dynamic environment in whichto study with a highly international cohort of students. LSE alsohouses the British Library of Political and Economic Science,the largest social science library in the world and is currently

undergoing a transformation of its central London campus, toprovide state-of-the-art facilities for all its students. LSE studentsand alumni also play a key role in a wide range of societies andgroups covering sports, networking, specialist lectures, interestsand more. Prominent examples that may be of interest to youinclude the Finance Society, Alternative Investments Society (andtheir leading conference), Hedge Fund Society and more, as wellas the extensive Banking and Finance alumni network.

In addition, as a student at LSE you will be at the heart of oneof the world’s most vibrant multicultural cities. Major culturalattractions such as theatreland, the West End, the Royal OperaHouse, the British Library and British Museum are all withinwalking distance of LSE. Whether you are into art, architecture,dance, film, music, theatre, sport, shopping or even greenspaces and the great outdoors, London really does have it all.

Students’ Union: lsesu.comAbout LSE: lse.ac.uk/aboutLSE/aboutHome.aspxLSE page about London: lse.ac.uk/lifeAtLSE/londonLife.aspx



MSc Finance (Full-time)

0 Department of Finance Masters Programmes 2013/14



The MSc Finance (Full-time) Programme is one of the world’s leadinggeneralist nance Master’s degrees, ideal for those whose careerobjectives lie broadly with the nancial services sector.

It offers high level graduates, whose backgrounds may not necessarily bein nance, a unique opportunity to gain a comprehensive foundation andsubsequent depth in the eld.

Being one of the most sought after degrees at LSE, the programme attractssome of the very best students from leading institutions from around the world.

It has also built a strong reputation amongst employers, with alumni nowworking in a diversity of institutions including many leading investment banks,nancial institutions, consultancies and boutique rms.

• Ten months (September 2013 – July 2014)•

£27,552• 85 places / 1,842 applications for 2012 entry• 1st class degree in any subject, a strong

2.1 degree may also be considered• Must demonstrate quantitative ability

• GMAT or GRE required for studentswithout a UK degree and is alsorecommended for students with UKdegrees, especially those who have notachieved, or are not expected to achievea 1st class, or those whose quantitativeskills are not demonstrated by theirundergraduate studies.




Programme structureThe programme begins with core courses in corporate financeand financial markets, which give a thorough grounding inthe principles of finance seen both in general and in realworld applications, taught in part using case studies. This

same combination of rigour and relevance is continued in theadvanced elective courses, which provide deeper practicalinsight into finance as practiced by leading financial institutions.

Pre-session(September)

Pre-sessional course Quantitative MethodsCareers Skills Programme

Michaelmas Term(October – December)

Core courses Corporate Finance

Asset Markets

Lent Term (January – March)

Elective courses Four half unit courses selected from:

Applied Financial Valuation*

Cases in Corporate Finance*

Financial Engineering*

Fixed Income Securities and Credit Markets*Risk Management and Financial Institutions*

Topics in Portfolio Management*

Other courses may be available with permission ofthe Programme Director

* Exclusive to MSc Finance students

Summer Term

(April – June)

Review and Exams

Submission of 6,000 wordDissertation in lieu of anexam




The programme allows you to tailor your course selection to your interests andcareer aspirations. As I wanted a career in Mergers and Acquisitions I chose twocase study-based courses, however, I know a lot of people who wanted to gointo trading, so they chose courses like Financial Engineering and Fixed Income.

The exibility of the second term is really great in this regard.

Joy Gu

Previous Degree: Economics,University of Chicago

Destination: Nomura, Hong Kong

Teaching and assessmentThe MSc Finance (Full-time) is taught over ten months followinga mixed format of formal lectures and interactive class teaching.Taught in three-hour sessions, the teaching allows the study ofcore theoretical concepts, whilst also allowing students to gaina practical understanding of the application of these concepts.The majority of courses use case studies and practical homeworkproblems to underpin the theory studied.

Courses are assessed by a mixture of final examination, andprojects or coursework. Students will be required to write a6,000 word dissertation (replacing the exam) in one of the halfunit elective courses selected.

All students are required to attend a three week pre-sessionalcourse starting in September 2013, covering both essentialmaterial needed to take the core courses and a range of careersskills and practitioner and alumni events.




Core CoursesAsset Markets

This course focuses on the three main asset classes– fixed income, stocks, and derivatives – giving aunified perspective of modern valuation methods.Starting with the present value formula the coursethen proceeds to fixed-income securities, focusingmainly on Government bonds, which we will value offthe term structure of interest rates, using the presentvalue formula. The connection with the principleof no-arbitrage will be emphasised. The course willthen move to stocks, starting with portfolio theory

and then deriving the relationship between risk andreturn (CAPM). The CAPM will provide a risk-adjusteddiscount rate, used to discount stocks’ cash flows withthe present value formula. Alternative pricing modelssuch as the APT and multi-factor will also be covered,and the models will be applied to issues of assetallocation and portfolio selection. The final topic willbe derivatives, especially focusing on futures andoptions. After familiarising students with the use ofderivatives, the course will cover the main valuationmethods (binomial model, Black-Scholes) emphasisingagain the principle of no-arbitrage.

Corporate FinanceCorporate Finance is the study of how corporations raisecapital and make investment decisions. The primary objectiveof the course is then to examine the financial decisions offirms with regard to their capital structure decisions (howto raise capital) and capital budgeting decisions (whichinvestments to make). In the first part of the course wediscuss the choice between debt and equity, initially in anidealised world and then we introduce real-world frictionssuch as taxes, financial distress, asymmetric information,corporate governance, and inefficient markets. We alsodiscuss topics such as IPOs and convertible securities. In the

second part of the course we introduce the techniques forvaluing projects and companies, and also discuss topics suchas mergers and acquisitions and real options.

We could very easily just teach students the current nancial tools, thecurrent ways in which rms nance their investments for example, but in18 months that would all be old news. What is constant, however, are theunderlying theories of Corporate Finance, so what we do at LSE is to helpour students to fully understand these theories, this intuition, so that in thefuture they can encounter new problems and be able to adapt.

Professor Christopher PolkLecturer, Corporate Finance




Elective coursesApplied Financial ValuationThis course covers advanced topics in Corporate Finance andValuation and introduces students to valuation techniquesfor both securities and projects. The first part of the courseintroduces students to performance evaluation and drawsimplications of prospective performance evaluation for thepricing of stocks in efficient markets. This is followed by a focuson the determination of intrinsic security prices and then finallythe course provides empirical evidence on returns to tradingstrategies based on fundamental analysis.

Each of the topics introduced in the course covers bothinstitutional details and results of relevant academic research(theoretical and empirical), supported by case studies.

Cases in Corporate FinanceThis course examines how to apply corporate finance conceptsin a wide variety of business situations via the use of casestudies. The course builds on concepts in business strategy,valuation techniques, and capital structure theories coveredin previous courses to see how to apply these tools in asystematic and rigorous way when approaching complicatedreal-life corporate finance problems. Examples of topics includecapital structure, risk management, initial public offerings,entrepreneurial finance, international corporate finance andfamily firms.

Financial EngineeringThis course covers the basics in derivatives theory, and how toapply them to a multitude of financial securities and structuredproducts. The pricing of such engineered products is coveredfirst in theory and then the course reviews selected case studiesin order to gain a better understanding of their practical usageand also implements some of the models numerically.

Risk Management and Financial InstitutionsThis course gives an overview of risk management in thecontext of portfolios of fixed income securities and derivatives,as well as dealing with credit risk. Throughout, the coursespends a significant amount of time on practical applicationsof the theories that are introduced. The limitations of currentapproaches are also discussed.

Fixed Income Securities and Credit MarketsThis course provides a thorough grounding in recentdevelopments in fixed income securities pricing, hedging andportfolio management. It covers topics includingthe analysis of the main products traded in the credit markets,an analysis of the main credit derivatives, the specific toolsused in the industry to evaluate and hedge these productsand the process of securitisation, with particular reference tocollateralised default obligations and mortgage-based securities.

Topics in Portfolio Management

This course provides analytical and statistical tools for themanagement of investment portfolios. The course focuseson stocks, bonds and currencies, with some attention paidto alternative asset classes such as commodities, real estate,and hedge funds. It considers portfolio risk management,international diversification, currency management forinternational investors, asset allocation, trade implementationcosts and trading strategies, and portfolio performancemeasurement and attribution.

Full details of all of these courses can be found on LSE’s onlineCalendar: www.lse.ac.uk/resources/calendar/courseGuides/graduate.htm




The ClassGMAT Total: Average 720 GRE Quantitative Section: Average 91%Male: Female ratio: M: 53% F: 47%

SouthAmerican 1%African 2%

British 11%

Mathematics 5%

Management 5%

Economics 47%

Other 6% Science 6%

Accounting andFinance 16%

BusinessAdministration 14%

The thing that unies my classmates is not just the fact that they are allacademically the best in their elds, but that they have also done a lot of thingsoutside of academic study. Some have had one or two years’ work experiencebut most have come straight from their undergraduate degrees. Everyone onthe programme is very determined and enthusiastic to learn about nance andto work well in a group, which makes for a really good working environment.

There have also been some great networking events, meeting alumni from theprogramme, which allows you to see how they are able to apply what we arelearning in their jobs.

Dev SinghviPrevious Degree: Accounting and Finance, LSE

Destination: PwC

Eastand SE

Asian 30%European 29%

Indian andS Asian 12%

MiddleEastern 2%

NorthAmerican 10%

Russian 3%

Nationality

Previous degrees




I decided to come to LSE because of its outstanding worldwide reputation,the excellent faculty and also the great feedback I’d received from MScFinance alumni. Now that I’m about to graduate I’d say that the well-roundedstructure of the programme, the great lecturers, the amazing students and theoverall atmosphere at LSE is unbeatable and being able to take part in that insuch a vibrant city as London is really a once in a lifetime experience. I thinkthat it has really been one of the best years of my life.

The faculty on the programme are really exceptional. They are leadingresearchers in the elds that they are teaching, which gives an extra dimensionto all the classes we are taking. The discussions are always really interesting

and dynamic, and they are always very open to hear your problems, and happy to take time to discuss thingsthrough with you.

The closeness to the city and our future employers is also a really amazing benet of studying at LSE. Beingable not only to get practitioners to come in, but also to go out and meet future employers through theemployer’s presentations is a great benet. In addition, the careers support for MSc Finance is really great. It’sbeen really helpful knowing that whenever you have questions there is support available. LSE organises lots offairs and company presentations that introduce you to a lot of different sectors and help you make a decisionabout where you want to work.

What I’ve enjoyed most about this programme is not only the intellectual challenge but the great friends Ihave made, the interaction with the faculty, and being here in London, which really is an adventure that givesyou memories for life.

Eric Surtevall

Previous Degree: Business Administration,Lund University, Sweden

Destination: Boston Consulting Group




MSc Finance and

Private Equity

8 Department of Finance Masters Programmes 2013/148 Department of Finance Masters Programmes 2013/14



The MSc Finance and Private Equity programme is the rst of its kind inthe world, offering students a generalist Finance Masters with a specialfocus on the study and practice of private equity.

Following a major investment initiative into the research and study of privateequity at LSE by Abraaj Capital, students will benet from being part of anexciting environment where world renowned academic faculty and leadingpractitioners discuss and contribute to the development of the eld.

The programme is built upon, and follows a similar structure to, the Department’s

highly successful MSc Finance (Full-time) Programme, with the addition of adedicated course taught by the School’s Abraaj Capital Chair in Private Equity.

This will explore the structure of private equity (PE) funds and how they canbe used in start-ups, in scaling-up cash ow businesses, and in restructuringrms facing nancial distress via a range of lecture, discussion, research andpractitioner-led teaching.


£27,552• 30 places / 636 applications for 2012 entry• 1st class degree in any subject, a strong

2.1 degree may also be considered• Must demonstrate quantitative ability• An interest in Private Equity and

Active Investing

• GMAT or GRE required for studentswithout a UK degree and is alsorecommended for students with UKdegrees, especially those who have notachieved, or are not expected to achievea 1st class, or those whose quantitativeskills are not demonstrated by theirundergraduate studies.




Programme structureThe first term of the programme follows that of the MSc Finance(Full-time), with core courses in corporate finance and financialmarkets. In the second term students take the flagship courseand practitioner seminar series in Private Equity in addition to

a range of advanced elective courses, which allow studentsto gain a deeper practical insight into finance as practiced byleading financial institutions.


Pre-sessional Course Quantitative MethodsCareers Skills Programme


Core Courses Corporate Finance

Asset Markets


Core CourseElective Courses

Private Equity (Half Unit)

Three half unit courses selected from:

Applied Financial Valuation*

Cases in Corporate Finance*

Financial Engineering*Fixed Income Securities and Credit Markets*

Risk Management and Financial Institutions*

Topics in Portfolio Management*

Other courses may be available with permission ofthe Programme Director

* Exclusive to MSc Finance students

Summer Term (April – June)

Review and ExamsDissertation

Students will be required to write a 6,000 worddissertation as 60 per cent of the assessment in thePrivate Equity Course




I have a couple of years of experience as an entrepreneur as I took a year outof university to start my own business. I became interested in Venture Capitalwhile I was trying to get funding. I then chose to study PE because I was keento learn from the other side of the table.

Christina Wei

Previous Degree: Finance, Rutgers University

Destination: Accenture

Teaching and assessmentThe MSc Finance and Private Equity is taught over ten monthsfollowing a mixed format of formal lectures and interactive classteaching. Taught in three-hour sessions the teaching allows thestudy of core theoretical concepts, whilst also allowing studentsto gain a practical understanding of the application of theseconcepts. The majority of courses use case studies and practicalhomework problems to underpin the theory studied.

Courses are assessed by a final examination, in addition tosome coursework element. Students will be required to write a6,000 word dissertation as 60 per cent of the assessment in thecore course in private equity (the remaining 40 per cent beingcoursework and the assessment of class participation).

All students are required to attend a three week pre-sessionalcourse starting in September 2013, covering both essentialmaterial needed to take the core courses and a range of careersskills and practitioner and alumni events.




CoursesFor descriptions of the core and elective courses

taught in conjunction with the MSc Finance(Full-time), please see pages 14 and 15.

Private Equity – Core Course

Starting by examining how private equity funds areraised and structured, this core course will examinehow private equity can be used in start-ups, inscaling-up cash flow businesses, and in restructuringfirms facing financial distress. It explores the linkbetween private and venture capital on the onehand and public securities markets on the other.The course will examine the process through whichprivate equity investors exit their investments. Itwill also give a detailed analysis of the types offinance used in private equity and an evaluationof the short and long-run performance of privateequity investments. The course will include anevaluation of the performance of different types ofprivate equity investment and a comparison withother forms of ownership will be undertaken.

This course takes a rigorous theoretical examinationof private equity, however also employs case studyteaching and is taught in conjunction with a rangeof practitioners in the field.

I’ve really valued the practitioner seminars – they have really given medirection. When I came to LSE I was clear that I wanted to do PE, but it’s afairly opaque industry and I wasn’t sure how I really wanted to get involved.Through the practitioner seminars I developed a better understanding of theindustry, I networked with those working in it and I now have a much betteridea of what I would like to do.

Matt Coady

Previous Degree: Economics, University of British Columbia, Canada

Destination: Silicon Valley B ank




The ClassGMAT Total: Average 724 GRE Quantitative Section: Average 91% Male: Female ratio: M: 65% F: 35%

SouthAmerican 3%African 6%

British 3%

East andSE Asian 18%

European 38%Indian andS Asian 3%

MiddleEastern 3%

NorthAmerican 18%

Oceania 3%Russian 6%

Mathematics 12%

Management 3%Other 3%

Accountingand Finance 26%

BusinessAdministration 12%Economics 32%

Engineering 12%

Nationality

Previous degrees




MSc Finance and Private EquityProgramme Director, Dr Ulf Axelson(pictured), talks to the Department ofFinance Graduate Admissions Manager,

Thomas WatsonThomas Watson: Ulf, the MSc Finance and Private Equityprogramme is currently in its second year. Can you tell me a littleabout the background to the programme?

Ulf Axelson: Well, it’s actually the first Masters in Private Equityin the world. The general growth that we’ve seen in PrivateEquity and Venture Capital over the past few decades has led toit becoming one of the most exciting areas to study in financeand economics, which makes it the perfect match with LSE. Ithink that it is very important that we teach our students about

Private Equity as it’s now such an important part of the economy;we see these types of investor helping firms at every level of theirexistence, be it start-ups, medium-sized or large firms. And ofcourse it is also a very exciting area of research in finance, whichis another reason why I think that we at LSE should be heavilyinvolved in this area.

TW: Leading on from that, what makes the research andteaching of Private Equity at LSE distinctive?

UA: I think that LSE is really an ideal research environment forPrivate Equity for several reasons. Firstly it’s obviously a greatinstitution, whose research culture and environment allows usto tie together both finance and economics with the broadersocial sciences like no other place in the world. It is really crucialthat when we study an important economic phenomenonlike Private Equity we can ask questions like: “Is this a type ofinvestment activity that actually helps the economy and helps theworld become better place or is it just some destructive shiftingof assets?” It is important to have an objective institution likeLSE, with its reputation for rigorous academic research, make acontribution to this type of question.

The other main advantage LSE holds is its location in the heartof London, which is really the home of the Private Equitycommunity. LSE has a tradition of being the place whereacademics and practitioners meet and this is especially true withinthe Private Equity sphere.

TW: Which in turn must add a great deal to theteaching experience?

UA: Yes, exactly. And that’s the great thing about this programmeat LSE, it combines the research-led, academic rigour that weare famous for with some much more practical elements. Infact I honestly think that I think the Private Equity part of thisprogramme is probably the most interactive course in any Mastersprogramme, definitely at LSE but also I think in Europe! The way Itry to teach Private Equity is through a case-based method, wherewe take real company situations, which we then discuss and talkabout how we can apply what we’ve learnt in other classes, interms of theories of finance, to the real life situations.

TW: And the programme is structured to build onto theDepartment’s generalist MSc Finance…

UA: Yes, students who take the MSc Finance and Private Equityprogramme get the same foundation in terms of strong financingfoundations that they do on the MSc Finance (Full-time) – so allthe standard valuation, asset pricing and corporate finance tools.They then get to take three of the optional courses, allowing themto specialise not just in Private Equity. It’s really a great foundationto build on, definitely one of the best generalist MSc Financeprogrammes in the world. Then on top of that we try to really dosomething special in terms of a very applied Private Equity course,which is really the flagship of the programme .




TW: From what I understand the Private Equity course is morethan just the standard lecture teaching format?

UA: The Private Equity course consists of two parts; one is aclassroom experience based on a number of business casesthat touch on the different aspects of Private Equity, and thesecond is the weekly practitioner seminars, where we inviteleading professionals from different areas of the Private Equityindustry into the class. It’s great to have the interaction betweenpractitioners and the academic side of things. Also a major partof the course is the dissertation, which turns out to have beenvery useful for the students as a way for them to get exposed tothe particular area of Private Equity that interests them. Actually,several have got job opportunities through meeting people

related to their dissertation research.

During the course we aim to give to the students a number ofdifferent things. One is a general institutional knowledge ofPrivate Equity – there are a lot of mysterious institutional termsand it might seem like a very difficult universe if you’re notinitiated, so we supply the students with all the knowledge theyneed and then they also get to meet practitioners from the majorPrivate Equity firms to get initiated into this “club”, so to speak.So that builds contacts for them and gives them job opportunitiesgoing forward.

I also think it’s about teaching a very applied type of course in whatI would call “active investing” which is really “how do we investthe money of wealthy individuals or companies into firms witha view to making these firms better and then becoming activelyinvolved in their running?”

It is really a very important skill for students to have in basicallyany type of managerial capacity, whether it be in a normal firm,

a Private Equity or a Venture Capital firm or if it is as just an assetmanager that invests into Private Equity.

TW: So finally, what type of student do you look for whenrecruiting for the programme?

UA: Well, as with all of our degrees, they obviously have to beacademically excellent. They do also have to be interested inPrivate Equity as well, but when I say Private Equity I mean it ina very broad sense. So we’re talking about what I was referringto as “active investing”, which could be Venture Capital, whereyou think about investing in very small start-up firms, to the verylarge-scale end of things, the leveraged buyouts, where we thinkof investing in the biggest firms in the world and then thinking ofways of improving them.

I also think that the students who thrive on this programmehave to be very smart and articulate because that’s a prerequisitewithin this industry and also the way that we teach the subject.It’s very important that students are proactive and outgoing inthe way that they talk to each other and talk to practitioners andwe actually train them to do this, so you need to be an outgoing,proactive person.

It’s also a benefit, although not an absolute requirement, to

have some type of work experience or internship experience sothat there’s been some exposure to firms before you enter theprogramme. But we’re looking for students from very diversebackgrounds. Private Equity is a field that’s actually starting tobecome very international and going in to all different parts of theworld and our class definitely reflects that.




The MSc Finance and Economics programme is a specialist,interdisciplinary degree based in the Department of Finance, and taughtin conjunction with the Department of Economics, one of the top-ratedEconomics Departments globally.

Drawing on the strengths of these highly respected academic Departments,the programme, now over fteen years old, has established itself as one themost highly regarded and sought after specialist nance degrees in the world.

This programme offers exceptional graduates from quantitative disciplines theopportunity to develop their understanding of nancial economics, nancialeconometrics and microeconomics to a very high level. The tools, advancedanalytical techniques and deep understanding of the principles of nance thatstudents take from the courses are directly applicable to a wide range of leadingnancial and other careers in the global nancial services sector.


Fees £22,176• 75 places / 1298 applications for 2012 entry

• 1st class degree in a quantitative subject,eg, Economics, Finance, Engineering,Mathematics, Physics. A strong 2.1 degreemay also be considered

• GMAT or GRE required for all applicants




Programme structureThe research and teaching which informs the intellectual core of

the programme enables students to examine financial marketsthrough in-depth analysis based on financial and economictheory and statistical methods. The core courses emphasiseanalytical rigour and theoretical foundations, in addition to awide range of practical applications. Students will learn aboutinvestments, asset pricing, derivatives and financial engineeringthrough the coherent lens of financial economics. They will beequipped with a comprehensive tool-kit that economists use inmany different areas, both in terms of theoretical models andempirical techniques. Econometric methods that are taughtinclude time series analysis with applications to financial modelsand data. Through an extensive array of optional coursesstudents can gain exposure to corporate and internationalfinance, portfolio and risk management, as well as specialisedmodelling skills including programming in MATLAB.

The programme is structured around three full-unit compulsorycourses (each running over two terms), in financial economics,financial econometrics and microeconomics. In additionstudents select a combination of two half-unit optional financecourses offered by the Department (running over one term) toinvestigate specialist finance topics, writing their dissertation inone of the two optional courses.

What makes this programme unique is that students are taught

not only how to apply and use various well-known models,but also to understand the technical foundations underpinningthose models. This allows students to acquire a deeper andself-confident comprehension as well as the crucial and highlymarketable skills of being able to alter, amend, empirically testand adapt the models to new market environments.

The programme’s course load is supplemented by an examinedpre-sessional mathematics and statistics course, and a non-examined, in-term course in probability and stochastic calculusto complement the second half of financial economics.


Introductory Course in Maths and Statistics


Microeconomics forMSc students

Financial Economics*

Financial Econometrics* This course issupplemented in MichaelmasTerm by a compulsory, non-examined course: Probabilityand Stochastic Calculus

Applied Corporate Finance

Corporate Finance Theory

Financial Risk Analysis

Fixed Income MarketsForecasting Financial Time Series

Global Financial System

International Finance

Portfolio Management

Quantitative Methods for Financeand Risk Analysis


Summer Term (April – June)

Revision, Exams and Dissertation




The coursesCompulsory courses

Microeconomics for MSc students

This course aims to develop the basic tools for analysing problemsof resource allocation used by economists working in research,government and business. The course deals with positive andnormative problems. It aims to include modern developmentswithout being overly mathematical, and to develop a capacity toapply economic concepts to real world problems.

The first part of the course focuses on classical theories of

consumer and producer behaviour and on the theory ofcompetitive equilibrium, beginning with careful analysis of theoptimisation problems of price-taking consumers and firms,before analysing market interaction and the formation of prices inthe framework of perfect competition, and concludes with a basicintroduction to decision making under certainty and game theory.

The second part of the course focuses on models of imperfectcompetition and information economics, beginning withan analysis of models of monopoly, oligopoly, productdifferentiation, and public goods, before studying markets withimperfect and incomplete information including search, adverseselection, auctions, signalling, screening, and moral hazard.Special emphasis will be given to economic applications.

Both the teaching faculty and your classmates are really smart. You want towork hard not only to pass your exams but because most people here arereally curious and it’s exciting to study such challenging subjects.

Pierre Viandaz

Previous degree: Engineering,

Institute National des TelecommunicationsDestination: Goldman Sachs




Probability and Stochastic Calculus

This course is an introduction to stochastic processes incontinuous time, with a view to finance applications. It is a

mandatory course taught in Michaelmas Term and is essentialpreparation for the second half (Lent Term) of FinancialEconomics. The course is unexamined.

Optional coursesApplied Corporate Finance

This course provides a thorough grounding in recentdevelopments in applied corporate finance through a study ofthe empirical corporate finance literature and case studies.

Corporate Finance A

This course covers a range of topics in corporate finance startingwith capital budgeting techniques, in relation to CAPM and othervaluation instruments and then the driving forces behind capitalstructure decisions and choices over debt and equity finance

Corporate Finance Theory

This course considers theories of corporate capital structure andcorporate governance, IPOs, takeovers and insolvency.

Financial Risk Analysis

This course investigates methods of financial risk assessment

including advanced risk measurement for fixed income and derivativeinstruments, credit risk modelling, methods for risk-adjusted capitalallocation, and modelling systemic and liquidity risk.

Forecasting Financial Time Series

This course examines the techniques involved in forecastingkey variables in finance. Students will learn both the theory andpractice of forecasting in finance.

Global Financial System

This course examines the academic and regulatory policy debateson the operation of the global financial system, analysing issues

based on rigorous economic arguments.

International Finance

This course examines key issues in international finance, focusingon recent developments and incorporating theoretical, empirical,policy and institutional dimensions. In approach and content,the course is complementary to Global Financial System.

Portfolio Management

This course addresses empirical and applied problems inportfolio management.

Quantitative Methods for Finance and Risk

This course Analysis encompasses quantitative and statisticaltools that are important in applied finance covering time-serieseconometrics; modelling financial returns; an introduction tothe analysis of financial data using MATLAB; volatility models;Value-at-Risk.

Financial Economics

This course analyses investors’ behaviour, market equilibrium,and the pricing of securities, including derivatives, in

intertemporal settings, utilising the methods of stochasticcalculus. Topics will encompass choice under uncertainty,complete and incomplete asset markets, mean-varianceportfolio theory and equilibrium asset pricing, pricing with noarbitrage, intertemporal asset pricing, Black-Scholes option andother contingent claims pricing models, the term structure ofinterest rates under uncertainty, and the pricing of interest ratelinked and other derivative securities.

Financial Econometrics

This course considers techniques of empirical investigation in

economics, emphasising time series methods, and introducesstudents to recent empirical findings based on asset pricingmodels. Computer exercises are used to familiarise studentswith key properties of asset return data. The course includesa selection of the following topics: multivariate regression;maximum likelihood and methods of moments estimation;hypothesis testing; omitted variables and misspecification;asymptotic theory; measurement error and instrumentalvariables; time-series modelling; predictability of asset returns;event study analysis; econometric tests of the CAPM andmultifactor models; volatility modelling; generalised method ofmoments estimation.




The ClassGMAT Total: Average 709 GRE Quantitative Section: Average 91%Male: Female ratio: M: 75% F: 25% Central Asian 3%

African 3%NorthAmerican 3%


European 32%

Indian andS Asian 14%

MiddleEastern 4%

Russian 6%

SouthAmerican 1%

Nationality

Mathematics 14%

Physics 2%

BusinessAdministration 9%Engineering 5%


Economics 61%

Previous degrees

Successful applicants typically have a strong quantitativebackground with at least a year each of calculus, linearalgebra and probability/statistics. Students from non-

economics backgrounds usually have some exposure toeconomics courses.




The Finance and Economics programme is unique in the way we seek todraw out, challenge, and extend students’ skills in nance, economics, andeconometrics, both quantitatively and analytically. The deep knowledgebase and advanced technical training that the programme provides arehighly desirable in today’s job market and enables students to thrive in theincreasingly complex environment of global nance.

Dr Amil Dasgupta

Director of MSc Finance and Economics

Teaching and assessmentThe MSc Finance and Economics is taught over 10 monthsfollowing a mixed format of formal lectures and interactive classteaching. All core courses are assessed by final examinationin the third term. Some of the half-unit optional courses havegroup/individual project work as part of the assessment, inaddition to an unseen examination.

DissertationStudents must write their dissertation (6,000 words) in lieu ofthe exam in one of their two optional courses.

MSc Finance and Economicspre-sessional coursesAll students are required to attend a two week mandatorypre-sessional course in Mathematics and Statistics run by theDepartment of Economics which is essential preparation for theprogramme. The course refreshes and builds quantitative toolsand techniques which will be relevant over the duration of theMSc and is examined at the end of the September. Additionally,a range of career skills and networking events will take placeduring the pre-sessional sessions.




MSc Finance and Economics (Research)In addition to providing students with the skills to succeed inkey roles in leading financial institutions, governmental andinternational organisations, and consultancies, the MSc Financeand Economics programme allows students to develop the first-rate quantitative and analytical skills necessary for pursuing highquality doctoral research.

Each year some students who especially want to go intoresearch positions or academia join the MSc Finance andEconomics (Research) programme. This is an advancedtrack of the MSc Finance and Economics programme and isrecommended for those students who are thinking of applyingto LSE’s PhD Finance. This is a small programme and acceptanceis not guaranteed.

Programme structureThe MSc Finance and Economics (Research) track differs fromthe normal track in two ways:

• Students take Advanced Microeconomics rather thanMicroeconomics for MSc Students

• Students write a dissertation of 6,000-10,000 (exact length isat their discretion).

Getting on the programmeThe MSc Finance and Economics (Research) programme is notavailable as a programme choice during the admissions process.Students apply to MSc Finance and Economics, take the pre-sessional Introductory Course in Mathematics and Statisticsand then apply to the Research programme. Acceptance isbased on: the student getting permission to take the AdvancedMicroeconomics course from the course leader in the Departmentof Economics; performance in the Introductory Course inMathematics and Statistics exams; previous background.

Why should I choose the research track?Students on both the MSc Finance and Economics and the MScFinance and Economics (Research) programmes can apply toleading PhD programmes worldwide and frequently get PhDoffers at leading schools in the UK, US, and Europe. Each year asmall number of students are accepted onto the LSE PhD Financeprogramme. The Research track allows students to strengthentheir microeconomics base and gives them the opportunity toundertake more extensive research. It is the preferred route tothe LSE PhD Finance programme. It can also provide a strongerbasis for applying to leading PhD programmes worldwide, aswell as research positions in the private and public sectors.

This is one of the best programmes in the world as preparation for PhDstudy. I knew before I came here that LSE was a great place for researchingnance with one of the top faculties in the world, and most of all, that theFinance department at LSE has a global reputation. It’s a place where youcan see the future of research. Attending conferences organised by FMG andthe Economics and Finance Departments has really broadened my sights innancial research and has given me new ideas about my own research.

Ye Li

Previous degree: Economics, Zhejiang University

PhD candidate




MSc Risk andFinance




• 12 months(September 2013 – September 2014)

• £22,176• 30 places / 542 applications for 2012 entry• 1st class degree in any subject, a strong

2.1 degree may also be considered

• Reasonable knowledge of mathsand statistics required

• GMAT or GRE required for students withoutUK undergraduate degrees

The MSc Risk and Finance is a specialist, multi-disciplinary programme inrisk management and regulation, aimed at high-achieving graduates froma variety of academic backgrounds.

The growing awareness of risk issues in recent years has meant that riskmanagement is now recognised as requiring specialist skills that are centralto the functioning of an organisation. The MSc Risk and Finance programmeis expressly designed to meet this need, and is intended to equip a futuregeneration of managers and regulators with the balance of skills appropriate fordealing with a wide range of risks.

The programme is taught by the LSE Departments of Finance, Accounting,Geography and Environment, Law, Management and Sociology and also enjoysclose links with Deutsche Bank, who supported the creation of the programmeand contribute high-level involvement during the course of the year.




Programme structureThe success of organisations depends upon their ability todeal with risk. Risk-taking in the face of uncertainties is an

essential part of entrepreneurship and involves recognising thata risk is both a hazard and an opportunity. Risk management,at corporate and regulatory level, demands a new kind ofcompetence that combines sensitivity to management issueswith strong knowledge of techniques for addressing the risksthat may arise from diverse origins. The MSc Risk and Financehas been designed with these issues expressly in mind andthe programme structure reflects the integration and overlapbetween different areas of risk.

The foundation of the programme is the compulsory core course(in Management and Regulation of Risk), which covers the

foundations and techniques of risk management and regulationas applied to financial markets, credit arrangements, operations,natural disasters and social and economic systems.

Students additionally study a compulsory half-unit coursein Finance, and can select a range of both quantitative and

qualitative elective courses offered by the Departments whichparticipate in the programme. In total, students must completefour full units of courses as follows:

• One unit – compulsory core course including10,000 word dissertation

• Half unit – compulsory course in Finance

• One unit of quantitative courses (Finance,Accounting, Statistics)

• One unit of qualitative courses (Geography, Law,Management, Sociology)

• Half unit of courses of the student’s choice.

September Arrival and pre-sessional course

October – December (Michaelmas Term) Core CourseElective Courses

January – March (Lent Term) Core courseElective Courses

April – June (Summer Term) Review and exams

June – September Submission of 10,000 word dissertation for core course

December following dissertation submission Graduation (subject to successful completion of allelements of the degree)




Teaching and assessmentThe MSc Risk and Finance programme is taught over 12 months,following a format of lecture and class teaching. Lectures deliver

the core theoretical and technical concepts, while the associateclasses allow students to apply and test their understandingof these concepts in a more informal style, often includingpresentations or group work.

The core course is assessed by a final examination in theSummer Term and a 10,000 word dissertation written on asubject of the student’s choice, which is submitted at the end ofAugust. The dissertation and the examination each represent 50per cent of the final grade for the core course.

Assessment on the optional courses will vary depending on theoptions taken. Most courses will normally have an examinationelement in the Summer Term, but others may also requirestudents to hand in assessed coursework (such as essays orprojects) during term time.

In addition to the formally examined aspects of the programme,there are a number of non-examined elements that take placeduring the year:

Pre-sessional programme: All students take part in a pre-sessional course in advance of the start of the first term.Typically, this will include some academic content, to ensure thatstudents are familiar with the technical skills required for the

programme, and will also include sessions with speakers invitedfrom relevant fields. The pre-sessional course also has a strongcareers focus, to help prepare students for the job market andthe process of thinking about their career development.

Practitioner Seminars: These seminars take place as part ofthe core course schedule and are designed to highlight the

experiences of major institutions dealing with large-scale risk.Deutsche Bank provide high-level involvement in these seminars,which normally take place twice in each term. It is possible thatpractitioners from other fields may on occasion participate inthese seminars.

Deutsche Bank internship (optional): Students have theoption to apply for an internship with Deutsche Bank duringthe course of the programme. Acceptance into the scheme iscompetitive and is not guaranteed, but in previous years somestudents have been offered internships and/or permanentpositions through this opportunity.




CoursesFull details of all of these courses can be found on LSE’s online Calendar

Compulsory corecourse (one unit)

Management and Regulation of Risk is designed to expose students to thebreadth of risk management thinking and approaches across different areas. Thecourse begins by setting out the problem of risk management and regulation andformulates a general conceptual framework that can be used in devising solutionsto risk either as a management problem or as a regulatory problem, or both. Itthen moves on to explore issues in financial risk and financial market regulation;organisations and manufacture risk; strategy, control and risk in organisations; andrisk analysis and the psychology of risk bearing.

Compulsory CoreCourse (Half unit)

Asset Markets A or Corporate Finance A or Finance I

Choice of quantitativecourses (one unit)

Students may choose from a list of approved quantitative courses, including:

Accounting in the Global Economy*Applied Corporate Finance*Asset Markets A or CorporateFinance I (if not chosen above)Financial Risk Analysis*Fixed Income Markets*Forecasting Financial Time Series*International Finance*

Principle of Decision Sciences*Portfolio Management*Quantitative Methods for Finance andRisk Analysis*Real Estate Finance*Stochastic Processes*Valuation and Security Analysis*

Choice of qualitativecourses (one unit)

Students may choose from a list of approved qualitative courses, including:

Accountability, Organisations andRisk management*Business and Organisational Ethics*Concepts in Environmental Regulation*Corporate and Financial CrimeCorporate GovernanceEconomic Appraisal and Valuation*Environmental Regulation:Implementing Policy

Issues in Environmental Governance*Law of Corporate FinanceRegulation of Financial MarketsRegulation, Risk and Economic LifeRisk and Governance: A SociologicalAppraoch*Strategy for the Information Economy*The World Trading System*

Student’s choice ofcourses (one unit)

Any course from the list of courses above, or others with the approval of theProgramme Director

* Half unit course




This course is unique in its breadth of vision of risk management and regulation.

Roughly half the course is devoted to nancial risk, and all students will comeaway with a solid understanding of measurement and management of market,credit, and liquidity risks. However, with modules drawn from the LSE’sstrengths in all the social sciences, students acquire a conceptual framework todeal with complex risks and to analyse real world cases where the risks do notconform to neat and simple categories.

Professor Ron Anderson

Director of MSc Risk and Finance

The ClassGMAT Total: Average 722

GRE Quantitative Section: Average 85%Male: Female ratio: M: 47% F: 53%

NorthAmerican 9%

European21%

MiddleEastern 3%

British 6%


Nationality

Management13%

Engineering 3%


Economics 39%

BusinessAdministration 6%

Mathematics 10%

Other 16%

Previous degrees




A group of former students give their views

on the programme.

JG: Before I joined the programme, I was working in investmentbanking and gradually became interested in risk management,particularly after the financial crisis. I could see how importantit was for companies to have good risk management practicesas they have a huge impact, not only on the companiesthemselves but also on society as a whole.

PAC: I became interested in different aspects of risk duringmy undergraduate studies. When I had completed them, Ilooked around for a masters specialising in risk and foundthis programme. I like the fact that it gives you a good

understanding of a lot of different types of risk. You areexposed to a whole spectrum of different professors during thecourse of the year who specialise in different aspects of risk.The programme is challenging because there is such a broadrange of topics, but the teaching is very good and you cantailor your choice of courses to make the programme your own.

JG: Yes, the broad range of topics does make the programmechallenging! But because you get exposure to so many differentareas of risk, you can discover the areas that interest you themost, and discover where you might want to work in thefuture.

MS: It’s good to have wide exposure to different topics. Itgives you a way of thinking about risk that enables you to linkdifferent areas of risk together and I found that interesting.The dissertation is a good way of learning about somethingyou are really interested in and allows to you develop a deep

understanding of the topic.

RH: There is a good balance between the quantitative andqualitative elements of the programme, which gives you arounded training – you need to be able to write, expressyourself and interact with others as well as apply the

Jessica GuoFinance, University ofBritish Columbia.

Worked in investmentbanking prior to joiningthe programme

Pable Alonso Caprile

Economics andStatistics, UCL

Ryan Hijazi

Business Administration, American Universityof Beirut.

Worked for auditcompany prior to joiningthe programme

Mihajlo Savkic

International Economicsfrom Central EuropeanUniversity




quantitative techniques. It’s a different kind of thinking. I alsofound the choice of courses to be good – each student is able to

choose topics that are of the most interest or benefit to them.JG: I also valued meeting people from different countries andbackgrounds – it has been an exciting and interesting experiencefor me.

RH: Yes, we are a small group of around 35 students on thisprogramme. The class has a nice mix of different backgroundsand we have all become good friends.

PAC: The societies here are well-run too and have access toimportant resources – the Finance Society is completely run bystudents and organised the world’s biggest Alternative Investment

conference this year. There are also lots of activities and workshopstaking place with people from the banking industry, where youcan meet them and get first-hand experience.

MS: LSE is a very well-known institution and you can see itsreputation through all the activities that are organised here. I

joined the Business Society which has given me the chance to goto Dubai for the first time.

JG: The careers service is also really professional. Thereare a lot of different people to help you with different aspects ofthe careers process, so it’s great. I have a few offers to considerfor next year, but I may go back to investment banking.

RH: I am hoping to work in the consulting sector next. I thinkthat the balance of skills that the programme gives you isdefinitely useful in the job market.




AdmissionsYou can apply to either one or two of our programmes via the

online admissions system on the Graduate Admissions Officewebsite. Please note that you should not apply for both MScFinance (Full-time) and MSc Finance and Private Equity. Youshould only choose the one you prefer.

The online system allows you to track every stage of yourapplication and we aim to return a decision to you within six toeight weeks of receipt of your complete application. Full details onthe application process including how to apply, what a completeapplication requires, and all other admissions-related enquiries willbe answered by the Graduate Admissions Office team.

lse.ac.uk/study/graduate/home.aspx

GMAT/GREThere isn’t a minimum requirement for GMAT or GRE scores.However, generally the selectors are looking for approximately 85per cent or more in the Quantitative section and an overall scorein the high 600s or more. You can see the individual programmeaverage scores throughout this brochure.

lse.ac.uk/study/graduate/enquirer/entryRequirements/GREGMAT.aspx

For GMAT/GRE exemptions see the table below.

English language

English language test scores are not a pre-requisite to apply. Ifyou are made an offer and your undergraduate degree was nottaught in English then you will be required to submit a IELTS orTOEFL or other approved English language test score.

lse.ac.uk/study/graduate/enquirer/entryRequirements/englishLanguage.aspx

For required scores please see the table below.

Programme Programme Aim Student Profile

MSc Finance (Full-time) To meet the needs of high-level graduates from fieldswhich may not be specifically relating to finance,whose career objectives lie broadly within the financialservices sector

Well-rounded, highachieving students, activebackground

MSc Finance and Private Equity Ideal for those who wish to study a broad-basedFinance Masters at the same time as specialising in thestudy and practice of private equity

As above, with a genuineinterest in Private Equity

MSc Finance and Economics Provides a thorough exposure to econometricmethods, including time series analysis, withapplications to financial models and data; investmentsand asset pricing, option and derivatives pricing, andportfolio managementtoday

Very strong quantitative andtechnical background

MSc Risk and Finance Will equip a future generation of managers andregulators with a broad-based balance of skillsappropriate to dealing with the range of risks facingorganisations today

As above, with a genuineinterest in Risk Management

Programme Type




Undergraduate degree Additional Information Additional Information

Work experienceWork experience (either through internships or full employment)is not a requirement for any of these MScs; however, applicantswho have some professional experience should include this in theirapplication, as it may strengthen their application. All applications areconsidered on a number of factors. Work experience can enhance analready academically strong application but is not a replacement formeeting the minimum academic requirement.

VisasLSE has a dedicated team of visa specialists who provideinformation to offer holders applying for a visa, current studentsamending their visa, and graduating students seeking workor extensions of their visa. You can find their information andcontact details on the LSE ISIS webpages.

The Graduate Admissions Office are responsible for processing all ofyour documents and issuing your CAS (needed for a student visa).

lse.ac.uk/intranet/students/ISIS/Home.aspx

Graduate Admissions Office: lse.ac.uk/study/graduate/gettingInTouch.aspx

Department of Finance Admissions Team:[email protected]

Financial support and scholarshipsThe LSE Financial Support Office awards funding to offer holdersbased on merit. At the point of application, applicants completean online assessment form (GSS), which automatically puts themforward for all available funding. If they are successful they willbe informed in their offer pack. There is a funding deadline soapplicants are advised to apply as soon as possible.

The Department also has a number of scholarships to award, to themost needy offer holders who fulfil the scholarship criteria.

lse.ac.uk/intranet/students/moneyMatters/financialSupport

Subject area Final Grade GMAT/GRE IELTS/TOEFL Score Duration Fees

Any backgroundis considered

1st class degree,a minimumof 2.1 (seeGraduateAdmissionswebsite for non-UK equivalency)

Required for non-UKUniversity applicants.Encouraged for UKstudents with 2.1degrees or non-quantitative subjects

Not a pre-requisiteto apply. Requiredfor any offerholder who’sprevious degreewas not taughtin English

Higherscorerequired

10 monthsSeptemberto June

£27,552

As above As above As above As above As above As above As above

Quantitative:Economics,Econometrics,Engineering,Physics, Maths

As above Required for allstudents. Target85 per cent + in theQuant section

As above Standardscorerequired

10 monthsLate Augustto June

£22,176

Mostlyquantitative,finance,economics,business

As above Required for non-UKUniversity applicants.Encouraged for UKstudents with 2.1degrees or non-quantitative subjects

As above As above 12 monthsSeptember toSeptember

As above




CareersOne of the many advantages of studying at LSE is the excellentglobal reputation it holds amongst employers for producing highlevel graduates. The Department of Finance in particular is veryhighly regarded in the City, Wall Street, and across Europe andthe world.

LSE and Department of Finance alumni hold senior positionsacross the global financial sector, and every year our students goon to a wide range of challenging and rewarding careers. Thelist below is just a sample of recent destinations of Departmentof Finance graduates. Each year a small number of students willalso go onto PhDs at LSE or the leading US and European schools,followed by high level careers in academia, policy or industry.

Aberdeen Asset Management

Accenture

Bain & Company

Bank of China

Bank of England

Barclays CapitalBlack Rock

The Blackstone Group

Bloomberg

BNP Paribas

Boston Consulting Group

BP

Capgemini Consulting

China International CapitalCorporation

Citigroup

Credit Suisse

Deloitte

Deutsche Bank

Ernst & Young

Fidelity InvestmentsFSA

Goldman Sachs

HSBC

JP Morgan

KPMG

Legal and General

Lloyds of London

McKinsey & Company

Ministry of Finance, France

Morgan Stanley

Nomura

Oliver Wyman

PwC

RBS

RothschildRoyal Bank of Canada

Shell

Societe General

Standard Chartered

Swiss Re

Turkish Treasury

UBS

Winchmore Capital

Zurich Cantonal Bank




Both the LSE Careers Service and the Department of Finance work hardto help our students be as successful as possible on the job market,providing advice and support before, during and after your MSc. Asample of the comprehensive careers support offered includes:

Pre-arrival

• Undertake careers research and submit your CV to the Departmentbefore arriving

• Advanced notice of recruitment deadlines (they start very early!)During orientation

• Careers workshops on job hunting, CVs, applications, interviews

• One to one sessions with specialist careers consultants to tailoryour CV and job search

• Meet and network with programme Alumni

• Introduction to the City

Michaelmas term

• Recruitment Events (choose wisely – these occur almost daily!)• The City and Banking Fair

• Up to four one to one advice sessions with LSE CareersService consultants

• Interview practice sessions

• E-tray and case study workshops

• Networking Sessions.

LSE Careers Service offers a comprehensive and excellent level ofcareers support to help you develop the career you, wherever you

want to go. You can find an LSE Careers Brochure and furtherinformation on Graduate Destinations via the “Information forProspective Students” pages on the LSE Careers website.

Department of Finance Careers: lse.ac.uk/finance/prospectiveStudents/careers/Home.aspx

LSE Careers Service: lse.ac.uk/lifeAtLSE/CareersEmployability/Home.aspx

I think what was really helpful was the fact that the LSE Careers Servicereally connects with the banks and brings them to the campus so youcan attend rm presentations and meet and talk to representatives fromall the major banks.

Fabian Kunz

JP Morgan

MSc Finance and Economics




Faculty

Name Research Interest

Emeritus Ronald AndersonProfessor of FinanceEmeritus Professor of Finance

Dynamic corporate finance; contingent claims analysis; credit risk; financial marketstructure and regulation; structuring financial contracts and institutions.

Dr Ulf AxelsonReader in Finance

Private equity; financial innovation and security design; corporate finance; auctiontheory; and financial intermediation.

Dr Elisabetta Bertero Lecturer in Finance

Sub-sovereign debt; the financial role of the state – the interaction betweengovernments and financial markets; budget constraints and state-owned firms;international finance.

Professor Sudipto BhattacharyaProfessor of Finance

Corporate finance and governance; models of research and development andthe dissemination of proprietary knowledge; financial intermediation; contracttheory; regulation.

Dr Maria Cecilia BustamanteLecturer in Finance

Dynamic corporate finance; asset pricing implications of corporate decisions;real options; game theory.

Dr Georgy Chabakauri

Lecturer in Finance

Asset pricing; portfolio choice; risk management.

Professor Mikhail ChernovProfessor of Finance

Empirical asset pricing; options; fixed-income and credit models; applicationsof econometric methods.

Dr Vicente Cuñat Lecturer in Finance

Corporate finance; applied theory; applied econometrics; industrial organisation;labour and personnel economics.

Dr Jon DanielssonReader in Finance

Financial risk analysis; value at risk; volatility modelling and forecasting; extremevalue theory.

Dr Amil DasguptaReader in Finance

Information economics and game theory with applications to finance; the theoryof delegated portfolio management and consequences for financial markets; thetheory of financial crises.

Dr Jack FavilukisLecturer in Finance

Consumption based asset pricing, incomplete markets; heterogeneityand inequality; limited participation and participation costs.





Professor Daniel FerreiraProfessor of Finance

Corporate finance and governance; organisational economics.

Dr Stephane GuibaudLecturer in Finance

International macro and finance; asset pricing; yield curve; optimal debtmanagement; recursive contracts.

Dr Christian JulliardLecturer in Finance

Macroeconomics; finance; applied econometrics; international economicsand finance; real estate finance.

Dr Dong LouLecturer in Finance

Empirical asset pricing; behavioral finance; empirical corporate finance.

Dr Ian MartinVisiting Reader in Finance

Empirical Asset pricing.

Dr Antonio Mele Reader in Finance

Asset prices and the business cycle; information networks in financial markets;statistical inference for dynamic models in finance.

Dr Philippe Mueller

Lecturer in Finance

Macro-finance; empirical asset pricing; fixed income; financial econometrics.

Dr Yves NosbuschLecturer in Finance

Sovereign debt; intergenerational risksharing; asset pricing and macroeconomics;empirical asset pricing.

Professor Stavros PanageasVisiting Professor in Finance

Asset pricing; microeconomics.

Dr Daniel ParavasiniLecturer in Finance

Corporate Finance; credit and banking; development economics.

Professor Christopher Polk

Professor of Finance

Asset pricing; corporate finance; behavioural finance; hedge funds; private equity;

macroeconomics.

Dr Andrea TamoniLecturer in Finance

Theoretical and Empirical Asset Pricing, and Financial Econometrics.





Dr Rohit RahiReader in Finance

Arbitrage in segmented markets; financial innovation and security design; assetpricing with asymmetric information; general equilibrium theory; incompletemarkets; networks.

Professor Dimitri VayanosProfessor of Finance

Liquidity and asset pricing; information in asset markets; delegated portfoliomanagement; behavioural finance.

Dr Andrea Vedolin Lecturer in Finance

Asset pricing; derivatives pricing; financial econometrics; portfolio theory.

Dr Michela Verardo Lecturer in Finance

Empirical asset pricing; market efficiency and investment anomalies; tradingbehaviour of institutional investors; behavioural finance.

Professor David Webb Professor of Finance, Headof Department

Financial economics and insurance economics; economics of information;corporate finance and financial markets.

Dr Moqi XuLecturer in Finance

Empirical corporate finance/governance.

Professor Kathy Yuan Professor of Finance

Bubbles and crises; liquidity; heterogeneous information; mutual funds;hedge funds; network theory; short-sale and margin constraints; globalgames; asset pricing.

Dr Konstantinos ZachariadisLecturer in Finance

Market microstructure and design; information economics and game theory withapplications to finance; corporate governance as related to economic efficiency.

Dr Jean-Pierre ZigrandReader in Finance

General equilibrium asset pricing; financial intermediation and delegation;continuous time asset pricing; herding; market crashes; foundations of arbitrage.

Faculty (continued)




London is a great city to live in and with LSE being so central you haveeverything on your doorstep – museums, musicals, movie theatres, pubs,restaurants and of course the City and Canary Wharf, which is ideal for us.

Dominique Carrie

MSc Finance (Full-time)

Everyone here is very keen on learning – everyone wants to know more, to attendmore lectures, more classes, which really motivates you to study. It is competitive,yes, but everyone is very keen on helping you so overall it’s a very friendly andstimulating atmosphere!

Arushi Bhagrava

MSc Finance and Economics




The information in this handbook can be madeavailable in alternative formats, on request.Please contact the Department of Finance.

The School seeks to ensure that people are treated equitably,regardless of age, disability, race, nationality, ethnic or national origin,gender, religion, sexual orientation or personal circumstances.

Freedom of thought and expression is essential to the pursuit

Department of Finance AdmissionsThe London School of Economics and Political ScienceRoom OLD 3.05, Old BuildingHoughton StreetLondon WC2A 2AE

[email protected]

Tel+44 (0)20 7955 7316

Websites lse.ac.uk/nancelse.ac.uk/nance/prospectiveStudentslse.ac.uk/nance/prospectiveStudents/admissions_enquiries

LSE 2014 MSc Programmes Brochure

Documents

Transcript of LSE 2014 MSc Programmes Brochure