Financial Modeling

Catalog description

Finance is the study of cashflows: their timing, amounts, and ultimately valuation are influenced by other market actors and exogenous events in the global macroeconomy. This course reviews the foundations of the Principles of Finance and Business Statistics from a quantitative and computational perspective with a very strong emphasis on Excel and R implementation. Mathematics of indexing, vectors, matrices and related computation will be used throughout. We grapple with uncertainty and use simulation and other computational techniques influences to understand risk-based pricing in finance. Crossovers between statistical analysis and finance are plentiful in practice and in academic inquiry. This course will challenge the students to engage in hands-on modeling exercises from a quantitative mathematics and modeling perspective.