Quantitative Methods in Finance
- The course aims to provide students the quantitative skills, which are value to financial analysts in both an academic and vocational setting. In particular the course has the following objectives: • to give students a comprehensive understanding of time value of money, probability, statistical, sampling, estimation and hypothesis testing concepts; • to develop students’ ability to apply quantitative techniques to the real-world economic cases; • to provide students with the ability to identify issues and assumptions underlying quantitative analysis.
- understand and apply the probability tools needed to frame and address many real-world problems involving risk;
- understand probability distributions and perform their investment uses;
- understand the framework of hypothesis testing and make judgements about the population in the basis of a sample analysis.
- solve time value of money problems and use it applications in equity, fixed income, and derivatives analysis
- use statistical methods as a powerful set of tools for analyzing data and draw conclusions
- apply sampling and use sample information to estimate the population parameters
- Week 1-2, Chapter 1
- Week 3, Chapter 2
- Week 4-5, Chapter 3: Probability concepts, portfolio expected return and variance of return
- Week 6, Chapter 4: Common probability distributions
- Week 7, Chapter 5: Sampling and estimation
- Week 8, Chapter 6: Hypothesis testing
- Week 9
- 2023/2024 2nd module0.09 * Test 8 + 0.09 * Test 6 + 0.09 * Test 7 + 0.23 * Final Project + 0.09 * Test 3 + 0.05 * Training Project + 0.09 * Test 1 + 0.09 * Test 2 + 0.09 * Test 5 + 0.09 * Test 4
- Frank J. Fabozzi, Sergio M. Focardi, & Petter N. Kolm. (2010). Quantitative Equity Investing : Techniques and Strategies. Wiley.
- Richard A. DeFusco, Dennis W. McLeavey, Jerald E. Pinto, & David E. Runkle. (2007). Quantitative Investment Analysis: Vol. 2nd ed. Wiley.
- Richard Brealey, Stewart Myers, & Franklin Allen. (2020). ISE EBook Online Access for Principles of Corporate Finance: Vol. Thirteenth edition. McGraw-Hill Education.