Course Detail
Units:
3.0
Course Components:
Lecture
Description
The course transitions students from understanding finance theory to implementing financial models based on real data and using statistics, probability and econometrics, quadratic optimization with matrix algebra, accounting, duration immunization and risk-neutral option modeling techniques. The models are built in Microsoft Excel through hands-on exercises in class and at home. The models covered include but are not limited to asset return calculations and statistics, efficient frontier and portfolio diversification theory, regression index models and investment performance analysis, discrete and closed-form option pricing models, bond valuation functions, duration matching and asset/liability management of pension portfolios, equity growth models, pro-forma accounting statement construction and leveraged buyout models.  To ensure success, students coming to the class should have already taken an investments class or should be taking it concurrently.