Finance Theory I

15.401 Finance Theory I is a graduate course from the MIT Sloan School of Management, taught by Andrew Lo in fall 2008 and published on OpenCourseWare with video lectures and slides. It introduces the core theory of modern financial economics and financial management with a focus on capital markets and investments. The syllabus describes a rigorous introduction to the fundamentals of modern financial analysis and their application to valuation, risk analysis, corporate investment decisions and basic security analysis and investment management. The lecture sequence runs from an introduction and course overview through present value relations, fixed-income securities, equities, forward and futures contracts, options, risk and return, portfolio theory, the CAPM and APT, capital budgeting, efficient markets, and a course summary.

In addition to the videos and slides, the site offers readings, recitation materials, problem sets with solutions, and exams with solutions, plus instructor insights. The original class met for two lectures and one recitation each week, but online there is no schedule: you work through the material at your own pace. All content is free under a Creative Commons licence, with no account and no certificate. For a graded finance course with an optional paid certificate, see MITx Online's Foundations of Modern Finance I.