Data Driven Financial Modeling. 3 credits, 3 contact hours

Catalog description

Prerequisite: FIN 600 . Financial modeling is of critical importance to asset allocation, pricing, trading strategy development, and risk management. By introducing basic and current financial modeling techniques, this course equips students with new analytic and modeling tools (e.g., spreadsheet modeling) to tackle rapidly changing and dynamic financial markets. In particular, this course delivers modeling frameworks such as regression analysis, forecasting, Monte-Carlo simulation and optimization. In addition, it illustrates how to apply these frameworks in financial contexts such as portfolio management, term structure estimation, capital budgeting, risk measurement, risk analysis in discounted cash flow models, and the pricing of European, American, exotic, and real options.