August 29, 2005
TO: Robert Mrtek, Chair
Senate Committee on Educational Policy
FROM: Roger Nelson
Assistant Vice Chancellor for Academic Affairs
At its meeting on April 13, 2005, the Graduate Subcommittee of the Senate Committee on
Educational Policy reviewed a proposal from the College of Business Administration and its
Department of Finance to establish the M.S. in Finance. Dr. Gib Bassett, Head of the
Department of Finance, was in attendance to respond to questions from the Subcommittee.
After due deliberation, the Graduate Subcommittee recommended to the full Committee that the
proposal be deferred until certain questions and issues were answered/resolved and some revisions
were made to the proposal. A list of the issues and Dr. Bassett’s responses are included with this
memorandum. In addition, a revised proposal is attached for the Committee.
I am returning this proposal to the SCEP agenda for its September 8 meeting and request further
review and action.
RN:
Attachments
Cc: C. Hulse
R. Betts
S. Lenway
A. McWilliams
G. Bassett
J. Pacanowski
Proposal for the M.S. in Finance
Responses to Issues from SCEP and the Office of Academic Programs
SCEP Issues
1. Would the MBA with the Finance concentration continue? What students would take the MBA degree and what
students would opt for the M.S. in Finance? (This will inform SCEP as to why CBA will have both the MBA
concentration and a separate degree in finance.
Yes, the MBA with the Finance concentration will continue. The MBA concentration in
Finance is designed to provide practical graduate education in issues related exclusively to
finance. The MS in Finance is the professional credential students need to position
themselves for advancement in the finance industry. The MS in Finance program allows
students to achieve a greater degree of concentration and customization than the more
general MBA. The competitive universities in greater Chicago also offer both programs.
Please see Section 8.3 in the proposal.
2. Usually, the M.S. degree requires a project or thesis. Is there some reason why the proposed program is course
only? Need to check the M.S. in Finance programs at other Illinois institutions and find out if they are course-only
programs. Also, there are several M.A. and M.S. degrees offered by UIC that do not require thesis, project or
comprehensive examination: 1) M.S. in MIS, M.A. in Real Estate, M.S. in Teaching of Mathematics, M.A. in
Philosophy, M.S. in Physics (thesis or course work only; no comprehensive exam), M.A. in Political Science, M.A. in
Sociology (project or course work only; no comprehensive exam).
It is norm that the MS in Finance degree does not require a thesis. Other Illinois institutions at Section 8.3
offer MS in Finance programs without a thesis. Both MS in Accounting and MS in MIS at College of Business
Administration at UIC are also course-only programs.
3. According to the proposal, required courses may be waived but have to be replaced. Can the program assure
quality where courses are waived?
The director of Graduate Programs in Finance will assure quality when courses are waived. Many of the
courses build on other courses so that it is important that students who waive courses know the required
material.
4. Does the proposed program require a comprehensive exam? See Q. #2, above. Check other institutions to see
which ones require a comprehensive exam.
None of Illinois institutions at Section 8.3 requires a comprehensive exam in getting MS in Finance degree.
5. If no comprehensive exam is required, shouldn’t the proposed program be a professional degree?
Other Illinois institutions at Section 8.3 also offer MS in Finance degree even though no comprehensive exam is
required.
6. Can a student waive an elective course (proposal says only “required” courses can be waived)? Need statement in
the proposal to the effect that students cannot waive elective courses.
The statement is now included in the proposal.
7. Need some faculty quality indicators in Section 13. Actually, it’s Section 12 that addresses faculty qualifications,
evaluation, etc. Suggestion: List all of the regular Finance faculty members who will offer courses for the M.S.
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program. Include their highest degree and the awarding institution. List their areas of research. Put this all into a
table format. Include some lead-in language that the program will taught by regular and adjunct faculty. The regular
faculty are doctorally trained and have the expertise to deliver the M.S. program. As for adjunct faculty, state what
qualifications they must have to teach in the program.
It has been added in Section 12.
8. Need an explanation that the M.S. is an industry norm.
Please see the responses to Item 1 and 2.
Office of Academic Programs Issues
9. The section on similar programs (Section 8.3) at surrounding institutions in the Chicago metro area as well as the
rest of the state: What the IBHE wants to know is how these other programs are similar or differ from the proposed
UIC program with regard to focus, courses required, etc.
It has been revised in Section 8.3.
10. Section 9.2 of the IBHE new program template asks the following question: Explain what students are expected
to know and/or be able to do upon completing the program. The proposal does not fully address this topic.
It has been revised.
11. Need to include a response to Section 9.3 of the template: Describe the strategies to be incorporated into the
proposed program to promote student learning.
This issue has been addressed at the meeting of July 27, 2005.
12. On page 7, I suggest inserting a sentence that elective courses will be selected in consultation with an advisor with
the intent to meet the educational goals and occupational needs of the student.
It has been added in Section 12.
13. Will the implementation of the M.S. in Finance have any negative impact on the B.S. in Finance program? For
example, will faculty resources be diverted from the undergraduate program to the graduate program?
No resources will be diverted.
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April 4, 2005
TO: Robert Mrtek, Chair
Senate Committee on Educational Policy
FROM: Roger Nelson
Assistant Vice Chancellor for Academic Affairs
I am submitting for review and action by the Senate Committee on Educational Policy the attached
proposal from the Department of Finance, College of Business Administration, to establish a new
graduate degree, the Master of Science in Finance.
The proposal was approved by the Graduate Academic Program Committee of the College of
Business Administration on October 22, 2004, and by the CBA faculty on October 29.
The proposal has been submitted to the Graduate College Executive Committee for consideration
at its meeting on April 8. I will report to the SCEP membership the outcome of that meeting prior
to the SCEP meeting of April 13.
RN:
Attachment
Cc: C. Hulse
R. Betts
J. McDonald
J. Pacanowski
G. Bassett
4
REQUEST FOR A NEW UNIT OF INSTRUCTION
1. Name of Institution: University of Illinois at Chicago
2. Title of Proposed Program: Master of Science in Finance
3. Contact Person: Dr. Charles Evans
3.1. Telephone: (217) 333-3079
3.2. Email: cevans4@uillinois.edu
3.3. Fax: (217) 244-5763
4. Level of Proposed Unit: Masters
5. Requested CIP Code (6-digits):
6. Proposed Date for Enrollment of First Class: Fall 2006
7. Location Offered: On-Campus
MISSION, OBJECTIVES AND PRIORITIES
8. Mission
8.1. The College of Business Administration (CBA) at the University of Illinois at Chicago (UIC)
is requesting approval to offer a M.S. in Finance within the Liautaud Graduate School of Business
(LGSB). The development of this program is consistent with strong student demand and strong
professional demand, both locally and nationally. The program will contribute to the emphasis that
the State of Illinois and the University of Illinois are giving to economic development. Virtually all
forms of economic development involve finance. The program will demonstrate the commitment
that UIC has to this economic development mission. Modern innovations need skilled
professionals. Graduates of the UIC program will be prepared to play an important role in the
future development of the state and metropolitan area.
The purpose of the program is to educate professionals in the field of finance. The program is
designed for students who wish to seek employment in a wide range of finance occupations in both
the private and public sectors. Finance professionals in the private sector include financial
planning advisors, security analysts, security brokers, finance specialists (e.g., loan officers and
others in financial institutions), money managers, and others. The public sector also employs many
finance experts in financial planning, finance management, public finance, financial regulation,
and other occupations. Employment forecasts for these occupations for the State of Illinois are
discussed in section 8.4.
Graduates of the UIC program will be well prepared to take the Chartered Financial Analyst
(CFA®) certificate exam that measures the competence and integrity of financial analysts. They
will also be prepared for the Financial Risk Manager (FRM) certification, an exam to measure
5
independent risk management and decision-making. Holders of these certificates are typically
rewarded with higher salaries.
The program will primarily use existing courses taught in the CBA to create a curriculum matched
to occupational demand for Illinois and its metropolitan areas. There is a growing need for finance
professionals who understand complicated financial assets. For example, as shown in section 8.4.,
there is growing demand for financial analysts and managers. The program is designed to provide
this training. Furthermore, the Chicago metropolitan area is projected to grow rapidly over the next
20 years (Northeastern Illinois Planning Commission). That growth will lead to increased demand
for finance professionals of all types.
8.2. An advanced professional degree in finance will help fulfill The Illinois Commitment by
fostering economic development in the State of Illinois. Financial innovation developed by the
leading global financial markets in Chicago, such as Chicago Mercantile Exchange, Chicago
Board of Trade, Chicago Board Options Exchange, and Chicago Stock Exchange, generate
demand for finance professionals. The UIC program would be the only master’s program offered
at a public university in Chicago to supply such professionals. The program will take advantage of
the faculty strength in the College of Business Administration. The proposed differential tuition
rate will generate funds to hire additional full-time faculty. Additional faculty will be sought with
strong research potential as well as the ability to interact with industry professionals.
The program will ensure that it is aligned with regional and statewide needs by creating a broad-
based Finance External Advisory Committee. While it is strictly advisory, this committee will be
asked to periodically review program content and quality of graduates. It is envisioned that the
committee will consist of members drawn from firms engaged in corporate finance, financial
management, security analysis, financial research, and so on. The External Advisory Committee
will comment on and make suggestions of additional topics that should be covered. The
Committee will review the content of the program each year.
8.3. The UIC program would be the only master’s program offered at a public university in
Chicago. The IBHE web site currently lists eight M.S. in Finance programs:
Northwestern University
NU offers MBA students a major in finance and analytical finance without a thesis
requirement. The students prepare for careers in commercial and investment banking, real
estate, insurance, and corporate control and treasury functions. The analytical finance
major provides a more technical understanding of financial modeling and the theory, and is
designed for students who plan to take very specialized finance jobs after graduation.
University of Illinois at Urbana-Champaign
UIUC offers an intensive ten-unit course-only M.S. in Finance program that is completed
in twelve months. The program produces finance professionals prepared to work in the full
6
scope of the finance industry. The UIUC program has been very successful in recruiting
international students and provides complete support in the form of residence, financial
information resource center, security exchange simulation, and a finance practicum.
UIC’s proposed program has a location advantage over UIUC given the proximity to
leading global financial markets in Chicago, such as Chicago Mercantile Exchange,
Chicago Board of Trade, Chicago Board Options Exchange, and Chicago Stock Exchange.
Given limited resources, the proposed UIC program will not provide the same level of
student service support initially, but it is a long-term goal.
DePaul University
DePaul offers a two-year, course-only, MS in Finance and MBA with Finance
concentration. Their program does not require a thesis and students get the degree by
taking nine required courses and three elective courses. The program is designed for the
part-time student who works during the day and seeks careers in financial analysis. DePaul
is on the 10-week quarter system and most classes in the program take place in the evening.
The UIC proposed program aims at full-time students. DePaul emphasizes its connections
with Finance Department alumni. It provides alumni and existing students with a broad
array of opportunities to enhance their professional lives. It provides opportunities for
mentoring, networking, social gatherings, internships and scholarship support to its
members.
Illinois Institute of Technology
Both the M.S. in Finance and M.S. in Financial Markets are course-only, professional
master’s degree programs designed for professionals who seek advanced and specialized
study in the field without requirement of a thesis. The program is supported by a
Quantitative Research Lab equipped with live financial data and news, and the latest
software used in the financial industry. The program aims at attracting students who work
in the Chicago financial services industry, and as a result it relies on professional adjunct
faculty working in the industry. Additionally, the program offers a flexibility regarding the
receipt of a degree, or a certificate. The proposed program emphasizes both financial
research and practice and is designed as a degree program. IIT also offers MBA with
Financial Management concentration, and MBA with Financial Markets concentration.
Saint Xavier University
St. Xavier offers a course-only M.S. in Finance in four ten-week terms. The courses are
offered evenings and weekends at both Chicago and Orland Park campuses to
accommodate the needs of working professionals. The St. Xavier University program
emphasizes a Certificate in Financial Analysis and Investments designed to prepare
students interested in becoming Chartered Financial Analysts (CFA). Additionally, St.
Xavier offers an MBA with a Finance concentration.
7
Compared with these programs, the UIC M.S. in Finance program will emphasize a strong
foundation in the financial principles that underlie modern finance practice. The program is
designed to serve working professionals and those seeking entry into the finance profession.
Exposure to finance research will be an important element of our program will offer training in
making financial decisions. The program aims to take full advantage of the leading global
financial markets in Chicago.
8.4. The Bureau of Labor Statistics of the U.S. Department of Labor provides projections of
occupational demand in finance related fields for the State of Illinois and the entire country.
Selected occupational demand data and projections are as follows.
Occupation Employment Projection
Projection Average
Occupation Title Base Year Year Employment Change Annual
Employment Employment Number Percent Openings
Nationwide
2002 2012 2002-2012 2002-2012
Finance Discipline
Financial Analysts 172122 204266 32144 18.7
Financial Managers 599055 708511 109456 18.3
Related Disciplines As a Benchmark
Accountants and
Auditors 1055217 1260676 205459 19.5
Administrative
Services Managers 320509 383973 63464 19.8
State of Illinois
2000 2010 2000-2010 2000-2010
Finance Discipline
Financial Analysts 10140 11950 1800 18 320
Financial Managers 34860 40440 5580 16 1090
Related Disciplines As a Benchmark
Accountants and
Auditors 47950 54150 6200 13 1330
Administrative
Services Managers 20960 24780 3830 18 730
The occupational projections indicate that demand for finance professionals will be strong
statewide and nationwide. In Illinois, the placement of Financial Analysts and Financial Managers
is projected to increase 7380 jobs in 10 years. This bright employment picture is also shown in
nationwide statistics. Population and employment growth in metropolitan Chicago will continue to
create demand for finance professionals.
8
Student demand for finance programs at UIC is very strong. In the past two years, more than fifty
percent of MBA students at UIC graduated with a Finance concentration. The percentage of
finance majors at UIC has increased by 91% between 1994 and 2003. Refer to the two tables
below:
Full-Time & Part-Time MBA Graduates with Finance Concentration
Graduating Finance All
Year Grads Grads Percentage
2002 96 189 51
2003 114 215 53
2004 98 218 45
Undergraduate Enrollment by Major, Fall Semesters
Major Year
2004 2003 2002 2001 2000 1999 1998 1997 1996 1995 1994
Undeclared 349 418 439 413 450 410 425 457 412 397 347
Accounting 488 508 511 415 401 500 599 657 703 745 767
Bus Admin n/a n/a n/a n/a n/a n/a n/a 0 8 16 33
Economics 69 86 86 53 38 40 45 49 45 55 51
Finance 543 582 567 492 464 448 364 334 273 283 293
IDS 134 193 307 379 442 551 531 330 213 195 211
Management 344 354 336 294 300 311 296 291 274 307 351
Marketing 336 353 365 322 332 344 341 310 322 294 292
Entrepreneur 6
Total 2269 2494 2611 2368 2427 2604 2601 2428 2250 2292 2345
%Finance 23.9 23.3 21.7 20.8 19.1 17.2 14.0 13.8 12.1 12.3 12.5
9. Program Description
9.1. The Master of Science in Finance combines finance, accounting, economics, and statistics to
provide students with perspective on the entire field of finance. The program takes advantage of
UIC’s location in the world’s leading futures and options financial center and its close links to
business and global financial institutions. The program can be taken to qualify finance
professionals for work in:
- financial market exchanges in greater Chicago,
- corporate finance, venture capital, and corporate restructuring,
- investment banking and commercial and retail banking,
- investment management and security analysis,
- capital markets and trading,
- risk management,
- corporate planning and consultancy,
- accountancy or law firms, property consultants, commodity business and investor
relations specialists,
- not-for-profit organizations, government departments, and international organizations.
9
Catalog Description:
FINANCE
Mailing Address: Liautaud Graduate School of Business Programs Office
UIC College of Business Administration (M/C 077), 815 West VanBuren Street,
Suite 220, Chicago, IL 60607-3525
Campus Location: Room 220 Rice Building
Program Code:
Telephone: (312) 996-4573
E-mail: mba@uic.edu
Director of Graduate Studies:
The Master of Science in Finance combines finance, accounting, economics, and statistics to cover all the
important areas of Finance. The program takes advantage of UIC’s location in the world’s leading futures
and options financial center, with close links to business and global financial institutions.
Admission Requirements
In addition to the Graduate College minimum requirements, applicants must meet the following program
requirements.
Master of Science
All applications are considered on an individual basis. Transcripts for all undergraduate and any graduate
work must be submitted.
Baccalaureate Field: No restrictions
Grade Point Average: At least 3.00 (A=4.00) for the final 60 semester (90
quarter) hours of undergraduate study.
Tests Required: GMAT or GRE. The score must be from a test administered
within five years of the requested date of entry. The writing
assessment is required.
Minimum TOEFL Score: 585 (paper based); 239 (computer based)
Letters of Recommendation: Two required
Personal Statement: Required
Other Requirements: FIN 500 Introduction to Corporate Finance, ACTG 500 Introduction to
Financial Accounting, IDS 570 Statistics for Management, and ECON 520 Microeconomics for
Business Decisions, or the equivalent coursework. Deficiencies can be addressed by taking these
courses at UIC, thus increasing the time to complete the degree.
Degree Requirements:
Minimum Semester Hours Required: 32
(Required courses can be waived by exams or at the discretion of the Director of Graduate Studies,
but they have to be replaced by other courses in the program).
10
Coursework:
Degree candidates must present a cumulative grade point average of at least 3.00 (A=4.00)
for 32 hours counting toward the degree.
Required Courses: 12 hours
Finance 510 Investments 4 hrs
Finance 520 Corporate Finance 4 hrs
Finance 570 (New) Quantitative Methods in Finance 4 hrs
Elective Courses: 20 hours
Elective courses will be selected in consultation with an advisor with the intent to
meet the educational goals and occupational needs of the student. Courses can be
chosen from the following list of approved electives. Other courses may be elected
with prior approval of the Director of Graduate Studies. At most, 8 hours can be in
disciplines other than Finance.
Existing Finance Courses (all 4 hours)
Fin 512 Portfolio Analysis
Fin 516 Theory and Structure of Options and Future Markets
Fin 530 Money and Banking
Fin 531 Capital Markets
Fin 542 International Finance
Fin 551 Financial Decision Making I
Fin 571 Empirical Issues in Finance
Fin 594 Special Topics in Finance
Fin 596 Independent Study in Finance
Actg 502 Financial Accounting I
Actg 516 Financial Statement Analysis
Actg 585 Corporate Valuation & Accounting Information
IDS 572 Data Mining for Business
IDS 582/Econ 537 Business Research and Forecasting I
IDS 583/Econ 538 Business Research and Forecasting II
Comprehensive Examination
None
Thesis, Project or Coursework-only options
Coursework only. No other options available.
9.2. Students will learn the advanced skills in applied finance required in today’s competitive
financial environment. The program provides a strong foundation in economics and teaches the
quantitative and analytical skills employed in the investment structuring, pricing, and risk
management of financial instruments, in the development of trading strategies, and in the
utilization of financial products. The curriculum was developed in consultation with leading
industry professionals and incorporates an extensive use of industry software. The program aims at
11
producing finance professionals prepared to work in the full scope of finance industries, including
investment management, security analysis, trading, risk management, corporate finance, venture
capital, corporate restructuring, investment banking, commercial and retail banking, government
finance, and nonprofit financial management.
9.3. The Admissions Committee will consist of faculty and academic professional staff members
from the College of Business Administration. Prior to admission, the Director of Graduate Studies
will advise each entering student to familiarize them with the purposes and requirements of the
program. The Director of Graduate Studies will assess the backgrounds of each student and
determine whether foundation courses are needed prior to beginning the required course work.
The Director of Graduate Studies will review the progress of each student after each semester, and
will advise students who are not making satisfactory progress.
Students will be equipped with technology for accessing financial information in a new
Quantitative Finance Lab. The lab enables access to leading edge financial analysis software and
real-time international financial data feeds to provide students with the hands-on modeling
experience that will give them an edge in competing for the most promising careers in various
subfields of finance. This will enhance productivity and learning within the program and increase
students’ marketability. Additionally, it stimulates opportunities for collaborative research and
teaching alliances among fields such as market microstructure, risk management strategies,
derivatives pricing, financing and valuation of knowledge-based companies, and other technology-
driven financial research areas.
RESOURCES
10. Projections in Table I presume full-time equivalent students who complete the program in one
year. Forty students will be enrolled in the first year, and twenty-two will graduate at the end of the
following year. In the subsequent year, thirty-five new students will be enrolled, and thirty five
will graduate two academic years from the date of entry. Table I shows the enrollment projection
over five years. The LGSB would hope to achieve a steady-state enrollment of 80 students at
program maturity.
12
Table I
Student Enrollment Projections
Budget 2nd Year 3rd Year 4th Year 5th Year
Year FY07
Number of Program Majors
(Fall headcount) 40 53 59 65 71
Annual Full-Time-Equivalent
Majors
35 46 51 56 61
Annual Credit Hours in
EXISTING Courses1
672 1022 1147 1272 1397
Annual Credit Hours in NEW
Courses1
160 80 80 80 80
Annual Number of degrees
Awarded
0 22 35 39 43
1
Include credit hours generated by both majors and non-majors in courses offered by the academic unit directly
responsible for the proposed program.
Notes:
The enrollment figures are based on the assumption that 60% of the students are full-time and 40% part time, about the
same ratio as the MS in Accounting. Full time students are assumed to take 3 courses; part time 2 per semester.
Summer session is excluded.
The projected tuition differential is based on the Fall 2004 rate of $3119/semester for full time, and $2079 per
semester for part-time (8 hours).
Full-time students will complete the program in 3 semesters; part-time in 4. A 90% retention rate was assumed during
the first year.
Calculations are based on a load of 400 student credit hours per year for each faculty member. This is based on 2/3 of
the AACSB standard for graduate student credit hours per semester.
13
11.
A tuition differential equivalent to the other master’s degree programs in the LGSB is being proposed for
this program. The revenue from this program is expected to cover the costs. The program will not be
offered without the tuition differential.
Table II
Total Resource Requirements
Current Budget 2nd 3rd 4th
FY06 FY 07 FY 08 FY 09 FY 10
Year Year Year Year Year
1 Total Resource Requirements 110.0 406.2 476.5 509.0 541.4
Resources Available from
2 Federal Sources1 0 0 0 0 0
Resources Available from 216.2 (tuition 286.5(tuition 319.0(tuition 351.4(tuition
3 Other Non-State Sources1* 0 differential) differential) differential) differential)
4 Existing State Resources2 110.0 110.0 190.0 190.0 190.0
110.0
Resources Available through (new tt
5 Internal Reallocation3 fac) 80.0 0 0 0
New State Resources
6 Required4 0 0 0 0 0
Breakdown: New State
Resources Required
7 FTE Staff5 . .
8 Personal Services
Equipment and Instructional
9 Needs
10 Library 0 0 0 0
11 Other Support Services6
1
These lines reflect funds available (not incremental funds) from non-state sources in any given year
2
Existing state resources in each successive year are equal to the sum of the previous year’s existing state resources
(line 4); plus resources made available through internal reallocation (line 5); plus new state resources (line 6). If state
resources allocated to a program in any given year (line 4) exceed state resource requirements needed to support the
program in the following year, state resource requirements should be reduced with a negative dollar adjustment on line
5. The sum of lines 2 through 6 will always equal line 1.
3
Numbers can be either positive (allocated to the program) or negative (allocated away from the program).
4
Reflects the level of state funding requested in the referenced year. Dollars reported are incremental.
5
Reflects the number of FTE staff to be supported with requested funds. Not a dollar entry.
6
Other dollars directly assigned to the program. Do not include allocated support services.
* Resources Available from Other Non-State Sources will be provided by the proposed differential tuition of $6238
per academic year for a full-time student. This is based on the rate for the 2004-05 academic year, and is subject to
change.
14
The program will utilize a new Quantitative Finance Lab. The Lab will house data and software
resources used in the program. The lab will be situated near existing faculty offices and thereby
easily permit student-faculty interaction. The lab will be funded by the proposed tuition
differential.
12. Initially, program administration will be incorporated into the LGSB Office of the CBA. This
office currently operates the master's programs in real estate and management information systems
in addition to the MBA. Once the Finance program has been established and tuition differential
funds are available, additional faculty will be hired as required by student demand. Emphasis will
be on faculty whose research is in areas emphasized in the program. Potential instructors with
expertise description are listed below:
Sankar Associate Professor PhD Corporate Finance, Bank Risk Management,
Acharya Northwestern Bank Capital Regulation, Investments
University, 1986
Gilbert W. Professor PhD University of Empirical Finance, Statistics, Quartile Models
Bassett Michigan, 1973 and Estimation, Decision, Risk and Voting,
Statistics and Sports
John J. Binder Associate Professor PhD University of Corporate Finance, Risk Analysis, Regulation
Chicago, 1983 of Financial Markets
Oleg P. Associate Professor PhD California Investments, Organization of Security
Bondarenko Institute of Markets, Financial Econometrics, Theoretical
Technology, 1998 and Empirical Asset Pricing
Hsiu-lang Associate Professor PhD University of Mutual Fund Performance Evaluation and
Chen Illinois at Urbana- Style Classification, Investment Style
Champaign, 1997 Migration, Momentum, and Co-movement,
Portfolio Management
Re-Jin Jennifer Assistant Professor PhD University of International Finance, Investment Securities,
Guo Minnesota, 1999 Comparative Studies of Alternative Estimation
Methods
Ping He Assistant Professor PhD University of Financial Intermediation, Asset Pricing,
Pennsylvania, Behavioral Finance, Bank Competition, Initial
2004 Public Offerings, General Equilibrium Asset
Pricing, Saving and Investment Behavior,
Money and Banking, Fixed Income Securities
Xiaoqing Hu Assistant Professor PhD Investments, Real Estate Finance and
Northwestern Economics, Asset Pricing, Portfolio Theory
University, 2002
J.B. Kurish Clinical Associate PhD University of Investments, Municipal Bonds
Professor Illinois at Urbana-
Champaign, 1983
John F. Professor PhD Yale Urban Economic Development--Theory and
McDonald University, 1971 Policy, Urban Real Estate Markets, Land
Values and Zoning
Stanley R. Professor PhD Stanford Stochastic Process, Optimization Models of
Pliska University, 1972 Investment Problems, Dynamic Asset
Allocation, Mathematical Finance
Jaeyoung Associate Professor PhD Washington Asset Pricing, Derivatives, Information
Sung University, 1991 Economics, Corporate Finance, International
Finance, Market Microstructure, Corporate
15
Insurance
Faye Hefei Assistant Professor PhD Stanford Corporate Finance, Financial Contracting
Wang University, 2005 withAccounting Frauds, Reputation
Acquisition of Underwriter Analysts
Lan Zhang Assistant Professor PhD University of Financial econometrics, statistical arbitrage
Chicago, 2001 and trading, the interface between statistics
and finance, inference for diffusion process,
credit risk analysis, analysis of high frequency
financial data, and survival analysis.
All instructors in the program will be evaluated on their ability to deliver courses that:
- set out clear objectives and evaluation methods (through monitoring of course syllabi
and other course materials)
- communicate evaluation results promptly and effectively (through monitoring of course
examinations and research paper assignments)
- foster active learning (through group projects and class discussions)
A course evaluation questionnaire has been designed that measures students' opinions of instructor
performance on these matters. Faculty development will be fostered by the use of the course
evaluation questionnaire. Annual faculty evaluations and evaluations of progress towards
promotion and tenure will place emphasis on teaching performance. Faculty members will be
required to assemble teaching portfolios that document their efforts to improve course content and
teaching performance.
Students will be equipped with technology for accessing financial information in a new
Quantitative Finance Lab. Career services and placement will be done through the CBA Career
Center.
The Master of Science in Finance is a critical part of the overall program in finance. The proposed
master’s degree program will provide the skills and areas of knowledge to enable a student to
become a professional in the field of finance. The program will be offered through the Liautaud
Graduate School of Business (LGSB) in the College of Business Administration. Using the faculty
at UIC, the program can become a leader in preparing finance professionals.
The department aspires to be a leader in the financial services industry centered in Chicago. This is
accomplished by research-oriented faculty emphasizing innovative and developing areas of
finance, including risk management, insurance, derivatives, corporate finance, portfolio
management, banking and global financial markets. The department’s reputation has earned the
distinction of ranking 19th in the nation in U.S. News & World Report's "America's Best Graduate
Schools”.
16
QUALITY ASSURANCE
13. Program/Student Learning Outcomes Assessment
13.1. Assessment Plan:
The purpose of the program is to educate professionals in the field of finance. Oversight of the
program will be performed by the Finance Committee for Graduate Education, and advised by the
Finance External Advisory Committee consisting of top-level industry professionals. One critical
task for these two committees will be to continuously assess basic skills and areas of knowledge
that graduates should possess to be competitive in the current job market. This list of basic skills
and areas of knowledge will be used to update the content of courses in the program. Assignments,
examinations, and student projects will be designed accordingly. Skill-based program development
will be an innovative feature of the program.
The measures of student learning will consist of examinations and paper assignments. The Finance
Committee for Graduate Education will annually review exams and papers to ensure mastery of
the material. The Director of Graduate Studies will report annually to the finance faculty on the
progress of the students in the program.
The program will include elective courses. Some of the electives will be taught by existing faculty
and some by working professionals. Guest experts will be brought in to lecture as needed.1
All courses will be evaluated using a SIT Course Evaluation Questionnaire that is being
administered by the UIC Office of Academic Affairs. This questionnaire is designed to elicit both
general student opinions and student judgment of specific aspects of course content, evaluation
methods, and instructor style and conduct. Examples of specific questions are (rate on a scale of 1
to 5):
- You found the course intellectually challenging and stimulating
- You have learned something which you consider valuable
- Instructor’s explanations were clear
- Course materials were well prepared
- Students were encouraged to participate in class discussion
- Students were encouraged to ask questions and were given meaningful answers
- Instructor made students feel welcome in seeking help/advice in or outside of class
- Instructor was adequately accessible to students during office hours or after class
- Feedback on examinations/graded material was valuable
- Methods of evaluating student’s work was fair and appropriate
- Examinations/graded materials were returned on a timely basis
- Compared to other courses you have taken at UIC, this course was …
- Compared to other instructors you have had at UIC, this instructor was…
- Course difficulty, relative to other courses (very easy to very hard)
- Course workload, relative to other courses (very light to very heavy)
1
The program will not make use of a comprehensive exam or uniform capstone experience. This is
standard in one-year master's degree programs.
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- Course pace was (too slow to too fast)
13.2. The success of the program will be assessed by:
- Student mastery of basic skills and areas of knowledge
(Assessed by annual monitoring of course content and student progress in courses)
- Student course evaluations
(The College of Business Administration is now using the SIT Course Evaluation
Questionnaire)
- Retention and graduate rates
- Placement of graduates
- Numbers/percentages of graduates passing the CFA® and FRM exams
- Student satisfaction with the program
(The College of Business Administration uses the Educational Benchmarking, Inc.
survey of graduating students to assess student satisfaction with its undergraduate and
MBA programs.)
- Employer satisfaction with the program
(Employer satisfaction will be assessed through informal contacts with firms and
governmental units that hire graduates.)
- Finance Committee for Graduate Education satisfaction with the program.
Surveys of graduates and employers will be used to modify and alter the list of basic skills and
areas of knowledge. Periodic meetings of the Finance Advisory Committee will also be used to
assess the program. It is anticipated that students will be able to complete the program in one year
of full-time study or two and one-half years of part-time study.
The Admissions Committee shall consist of faculty members from CBA. The Director of Graduate
Studies, supported by the LGSB Programs Office of the CBA, evaluates the progress of each
student every semester, and advises students who are not making satisfactory progress. Admission
and administrative processes already exist at the graduate program level through the LGSB Office,
which currently has responsibility for the MBA, Master of Science in Management Information
Systems, and MA in Real Estate programs. Successful administration of the admissions process is
vital to attracting highly qualified students. The tracking of student progress and graduation rates
will be maintained by the Director of Graduate Studies with the assistance of the LGSB office.
The Finance Committee for Graduate Education will consist of faculty members who teach in the
program. This Committee will be chaired by the Director of Graduate Studies. This committee will
continuously review the program and teaching methods. The committee will also meet with the
External Advisory Committee to revise and update the list of basic skills and areas of knowledge.
The Director of Graduate Studies will advise each student as to the proper sequencing of courses.
This proposal has presented a system for reviewing the program and the progress of students.
These processes involve the External Finance Advisory Committee, the Finance Committee for
Graduate Education, and the Director of Graduate Studies. In addition, the program will be
reviewed by the Illinois Board of Higher Education through its periodic program review process.
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University of Illinois at Chicago
College of Business Administration - Liautaud Graduate School of Business
Proposal for Differential Tuition Assessment for M.S. in Finance
Proposal:
The College of Business Administration at UIC requests the Board of Trustees approve a tuition
differential for the new M.S. in Finance program to become effective in Fall 2006. This is a new,
professional master’s degree within the Liautaud Graduate School of Business. The amount would
correspond to that which is charged to students in the Master of Business Administration (MBA),
the Master of Science in Accounting, the Master of Science in Management Information Systems,
and the Master of Arts in Real Estate programs. If approved, all master’s degree programs within
the LGSB would be charged the same rate.
Background:
The M.S. in Finance is designed for students who wish to become finance professionals as
financial planning advisors, security analysts, security brokers, finance specialists (e.g. loan
officers in financial institutions), and money managers. This program is distinct from the MBA
program, which is a general business program for students to become business managers. Students
in the MBA program can take a three-course concentration in finance; however, the MBA takes
two years of full-time study. The M.S. in Finance can be completed in one year.
Program Enhancements:
All of the professional master’s degree programs within the Liautaud Graduate School of Business
assess differential tuition of equal amounts. This revenue is used by the college for program
enhancements such as funding elective courses, hiring teaching assistants for courses,
programmatic support for faculty who teach in the master’s programs, and for supporting career
and academic advising services for the students.
Specific to the M.S. in Finance program, the revenue will also be used for the creation and
maintenance of a Quantitative Finance Lab for students in the program. This lab will be equipped
with leading-edge financial analysis software and real-time international financial data feeds to
provide the students with hands-on modeling experience that will give them a competitive edge for
the most promising careers. Lab activities will be designed to enhance productivity and learning
within the program.
Comparative Tuition Data:
With the tuition differential, the M.S. in Finance will charge the same amount as other LGSB
master’s programs. For the Fall 2005 semester, the tuition and fees for a full-time Illinois resident
is $7655. The M.S. in Finance requires 32 semester hours, which could be completed in one year,
bringing the total cost for the program to $15,310.
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The UIC M.S. in Finance is the only program of its type offered at a public university in Chicago.
Other programs listed on the web site of the Illinois Board of Higher Education (IBHE) and their
corresponding tuition rates are as follows:
University Program Length Program Cost2
University of Illinois at Urbana-Champaign 28 sem hrs (1 yr) $38,680
DePaul University 12 courses $32,160
Illinois Institute of Technology 14 courses $31,020
Northwestern University 5 – 8 courses $27,188
St. Xavier University 39 sem hrs $23,400
University of Illinois at Chicago with 32 sem hrs (2 $15,310*
differential semesters)
*The amount will increase if the program is completed in more than two semesters.
Student and Alumni Input:
The M.S. in Finance is a new degree program that will start in Fall 2006. The tuition differential
will be required from the onset of the program.
Course Descriptions:
FIN 510 Investments. 4 hours. Restricted to students in the following majors: Accounting: MS
or MBA (Flex) or MBA (Cohort). Theory and practice of investment analysis. Topics included are
the institutional organization of security markets, and fundamental principles of asset valuation
with application to specific securities. Prerequisites: FIN 500.
FIN 520 Corporate Finance. 4 hours. Restricted to students in the following majors:
Accounting: MS or MBA (Flex) or MBA (Cohort). Advanced topics in corporate finance including
capital structure, dividend policy, financial restructuring, bankruptcy, and leasing. Emphasis on
recent developments in corporate finance and financial economics. Prerequisites: FIN 500.
FIN 512 Portfolio Analysis. 4 hours. Development of portfolio theory; establishment of
portfolio objectives; evaluation of portfolio performance; investment objectives for individuals,
corporations banks, pension and mutual funds, and their interrelation with economic environment.
Prerequisites: FIN. 510, Investments.
FIN 516 Theory and Structure of Options and Futures Markets. 4 hours. History and
institutional structure of options and futures markets. Uses of futures and options for arbitrage,
speculation and hedging by financial and portfolio managers of domestic and
multinational organizations. Analysis of factors which determine futures and options prices.
Prerequisites: FIN 510 Investments.
FIN 530 Money and Banking. 4 hours. Restricted to students in the following majors:
Accounting: MS or MBA (Flex) or MBA (Cohort). The functions of money; monetary standards;
2
Estimated cost based on information contained on the institution’s web site.
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development and operation of commercial banking and the Federal Reserve System. Theories of
the supply and demand for money; effects of monetary changes on economic activity, interest
rates, and income. Prerequisites: FIN 500.
FIN 531 Capital Markets. 4 hours. Capital markets in the private economy. The flow of funds
in financial markets and financial intermediaries. The pricing of securities. Short term money
markets and the Federal Reserve System. The market for long-term securities. Financial markets
and the stability and progress of the economy. Prerequisites: Fin 500 Introduction to Corporate
Finance.
FIN 542 International Finance. 4 hours. Restricted to students in the following majors:
Accounting: MS or MBA (Flex) or MBA (Cohort). Financial management within an international
context. International monetary system, exchange rates, foreign investments, working capital
management, financing trade, taxation and earnings reports. Prerequisites: FIN 510.
FIN 551 Financial Decision Making I. 4 hours. First foundation course for the study of
modern financial economics. Two-period individual consumption and portfolio decisions under
uncertainty and their implications for the valuation of securities. Prerequisites: Consent of the
instructor.
FIN 571 Empirical Issues in Finance. 4 hours. The methodology used in analyses of market
efficiency, asset pricing and capital allocation. Prerequisites: Fin 500 (Introduction to Corporate
Finance) and consent of the instructor.
FIN 594 Special Topics in Finance. 1 to 4 hours. May be repeated for a maximum of 12 hours
of credit. Students may register for more than one section per term. An intensive study of a
selected topic in finance. Topics vary by sections and by term. Prerequisites: Graduate standing;
and consent of the instructor.
FIN 596 Independent Study in Finance. 1 to 4 hours. May be repeated for credit. Students
may register for more than one section per term. Students may register for more than one section
per semester. Independent study under the direction of a faculty member. Must be arranged before
the start of the semester. Prerequisites: Consent of department head or instructor.
ACTG 502 Financial Accounting I. 4 hours. Restricted to students in the following
colleges/schools: Summer Session Only; or to students in the following majors: Accounting: MS
or MBA (Flex) or MBA (Cohort). Accounting theory and practice related to asset valuation,
revenue recognition, and the determination of short-term liabilities; aspects of financial statement
analysis related to these issues. Prerequisites: Actg 500.
ACTG 516 Financial Statement Analysis. 4 hours. Restricted to students in the following
majors: Accounting: MS or MBA (Flex) or MBA (Cohort). Use of financial information by
decision makers external to the firm; profitability and risk analysis; financial forecasting and
equity valuation. Extensive computer use required. Prerequisites: ACTG 502; or approval of the
department.
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ACTG 585 Corporate Valuation and Accounting Information. 4 hours. Restricted to
students in the following majors: Accounting: MS or MBA (Flex) or MBA (Cohort). No credit
given if the student has credit in ACTG 485. Valuation using discounted cash flow and multiples.
Use of financial disclosures to construct forecasts. How multiples behave. How accounting affects
valuation ratios. Prerequisites: ACTG 502; and FIN 510 or FIN 520; or approval of the
department.
IDS 572 Data Mining for Business. 4 hours. Restricted to students in the following
colleges/schools: Summer Session Only; or to students in the following majors: MBA (Cohort) or
MBA (Flex) or Management Information Systems: MS. No credit given if the student has credit in
IDS 472. Introduction to data mining for business. Applications to marketing, credit scoring,
quality assurance, operations management and human resources management. Prerequisites: IDS
532.
ECON 537 Business Research and Forecasting I. 4 hours. Same as IDS 582. The role of
research in business; forecasting methods and techniques, including models and their applications.
Prerequisites: ECON 534 and at least one statistics course with regression analysis at the 300-
level or above.
ECON 538 Business Research and Forecasting II. 4 hours. Same as IDS 583. The role of
research in business; forecasting methods and techniques, including multivariate time series
models and their applications. Prerequisite(s): IDS 476 or IDS 582; and graduate standing.
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