Industrial Engineering and Management Ma, Management science, 6 credits

Aim

The course constitutes an in-depth study in system analytical methods for handling and modeling management problems. The course will give the student an understanding of and be able to apply standard methods for valuing financial and real assets, models for benchmarking and portfolio selection, as well as understanding of the criticisms directed at these methods.

Course objectives

After the course the student should be able to:
- account for market hypotheses,
- valuing financial and real options based on the binomial model,
- calculate real options using dynamic programming and the relationship between the binomial model and the Black Scholes formula,
- perform optimization and portfolio selection with regard to risks,
- perform benchmarking using data envelopment analysis and efficient frontiers

Content

Course consists of
- System analysis in management and economics, overall perspectives
- Market hypothesis
- Option, futures and forward contracts, strategies
- Calculating financial options with the binomial model
- Relation between the binomial method and black scholes formula for option valuation
- Optimization with respect to risks and portfolio selection
- DEA and calculations of efficient frontiers
- Orientation about other methods

Entry requirements

Business Organisation and Management BA (ABC), 60 credits including Individual assignment 15 credits and Mathematics BA (AB), 24hp

Selection rules and procedures

The selection process is in accordance with the Higher Education Ordinance and the local order of admission.

Teaching form

The course will have lectures. The students project assignments. The project assignments can be done indvidually or in groups of two students

Examination form

R101: Written report and oral presentation, 6 Credits
Grade scale: Seven-grade scale, A, B, C, D, E, Fx and F. Fx and F represent fail levels.

Grading criteria for the subject can be found at www.miun.se/en/Student/Services/Grading-Criteria

The examiner has the right to offer alternative examination arrangements to students who have been granted the right to special support by Mid Sweden University’s disabilities adviser.

Grading system

Seven-grade scale, A, B, C, D, E, Fx and F. Fx and F represent fail levels.