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Intro.pdf - MITOCW | watch?v=HdHlfiOAJyE The following...

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MITOCW | watch?v=HdHlfiOAJyE The following content is provided under a Creative Commons license. Your support will help MIT OpenCourseWare continue to offer high quality educational resources for free. To make a donation or to view additional materials from hundreds of MIT courses, visit MIT OpenCourseWare at ANDREW W. LO: So on behalf of the Sloan School I want to welcome all of you to 15.401 Finance Theory. This course is meant for first year MBA students. And so that's the focus, and I'm going to assume that that's the background that all of you will have. We may have a few other students in the class, but primarily it will be first year MBAs who are thinking about a career in finance, as well as those of you who aren't sure about a career in finance but are curious about it. Hopefully over the next 13 weeks we'll be able to satisfy that curiosity. I want to start by talking a little bit about what finance is, and how I got interested in it, because I think it's often helpful in order to motivate a subject to get a sense of how somebody else decided to choose this as a profession. To do that I have to go back a little bit, and give you some background about my own educational experiences. So let me start by mentioning that I've been at MIT for the past 20 years, and been in the finance group all that time. Before that I taught at the Wharton School for four years. And before that, I got my PhD in economics from Harvard University, and then graduated in 1980 from Yale also majoring in economics. And during that time I've learned an enormous amount both about finance and the real world, but one of the things that I keep coming back to is the fact that the finance field is almost unique in how it applies to practical management problems. And what I want to try to do over the next 13 weeks is to convince you of the fact that finance is in fact, the most important subject that you'll ever encounter. That in fact, finance is at the core of everything that you will ever do in business and in management. Now that's a tall order I recognize, and I suspect that some of you are quite skeptical about the role that finance might play in your own career objectives. And I know many of you have very different career objectives. And I'm not even trying to convince all of you to go into a career in finance, but I am trying to convince all of you that finance is really the lifeblood and the basic lingua franca of all of business. And that's one of the reasons why finance is such an important subject. Now before I begin, let me ask you a question. How many people have had no finance background whatsoever? Oh, that's great. I look forward to a challenge. But the other reason it's great is I have to tell you that it's a real privilege for me to be here in front of you to tell you about finance for the very first time. And it reminds me a little bit of my younger son who is an extraordinarily fussy eater, he's eight years old now. But ever since he was born he had some
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  • Spring '17
  • Jim Angel

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