Quantitave Methods of Finance

The course provides students with a rigorous introduction to the quantitative and statistical tools used in finance. The course begins with a review of the types of financial returns and the mathematical and statistical foundations needed for finance. The course proceeds to regression analysis (single and multiple) and covers hypothesis testing as well as diagnostic checking of regression models in detail. The course concludes with a discussion of time series analysis. Throughout the course, emphasis is placed on understanding and modeling asset returns as well as on testing asset-pricing models.