<p>You only used the very basic aspect of black scholes. The theoretical side of it requires an understanding of differential equations.</p>
<p>Hence "And then you'll play with it a lot more in upper level classes."</p>
<p>All the "true" finance concentrators take FNCE 206: Financial Derivatives. It's one of the hardest classes here.</p>
<p>What makes you think that business/finance students don't understand differential equations?</p>
<p>You clearly don't know what differential equations are.</p>
<p>Seems like Statistics and Actuarial Science majors are the only ones who have to learn differential equations. Only they take Calculus 2 course at UPenn which includes differential equations.</p>
<p>It really depends on your school. For example HYP econ beats Cornell AEM. Your major rarely matters (depends on the job), but your school matters a lot.</p>
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If you're smart enough and use your great research skill, you would find ABSOLUTELY NONE of the doctorates in business requires undergraduate business degree,
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<p>The fact that the PhD business programs don't require undergrad business degrees by itself means nothing, as few PhD programs in any field actually REQUIRE an undergrad degree in that field. For example, I know people who got into PhD programs in physics who didn't major in physics as undergrads, instead majoring in things like EE or math. Yet we can all agree that physics is chock full of theories. </p>
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and most of the finance concentration requires deep understanding in economics or mathematics, not business.
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<p>Well, this may be a quarrel over semantics, but finance IS business in the sense that much of the major advances in the finance world were founded by business academics. For example, Franco Modigliani, who codiscovered the Modigliani-Miller theory of corporate finance, was a business academic who worked at the Tepper School of Business at CMU. I would say that Modigliani-Miller is a business theory. It's from the world of finance, but finance is a subset of business. Similarly much of options theory, including Black-Scholes and binomial options theory, as well as arbitrage pricing theory, were invented by business school profs. Stewart Myers, Fischer Black, Robert Merton, Myron Scholes, Stephen Ross, and John Cox were or still are profs at the MIT Sloan School of Management. John Sterman and Jay Forrester, also from Sloan, developed Systems Dynamics theory. Erik Brynjolfsson, another Sloan prof, is arguably the leading expert on the theory of Information Technology productivity. </p>
<p>So you asked for some business theories, and there's a bunch right there. You can find many more in the realm of operations management, optimization, organizational behavior, decision analysis, and so forth.</p>
<p>Sakky many of the things you listed were not invented by Business professors. Black-Sholes for example was invented by math and econ professors.</p>