ADVANCED FINANCIAL MATHEMATICS

This course aims to give the basic quantitative tools for the analysis and solution of optimization problems in business and the construction and selection of stock portfolios.

Having followed the online course of Financial Mathematics. Have a sufficient knowledge of Excel. Have the basic knowledge of Probability Calculation and Basic Statistics.

Knowledge and understanding: the student will learn the theoretical elements for a correct methodological approach to optimization problems in business and finance and for the evaluation of financial transactions in conditions of uncertainty using Microsoft Excel; he will be able to use problem-solving techniques. Applying knowledge and understanding: the student will be able to solve real problems related to the evaluation of financial transactions in conditions of uncertainty in the economic and business environment, so as to be able to rationally choose between several alternatives and decide the best among several options. The exercises carried out during the course aim to use theoretical tools to achieve practical resolution. Criticism of judgment: the student will be aware of the results obtained through the knowledge of the theoretical/technical procedures followed to achieve them; he/she will be able to formulate autonomous and objective judgements and will be able to recognize wrong or inefficient solutions in an economic-firm logic. Communication skills: the student will learn to communicate in a simple, unambiguous and clear way the results achieved, even and especially if they are the result of complex procedures and also to people with different cultural backgrounds, in order to facilitate the exchange of information in an efficient way. Learning skills: the student will be able to carry out the activities of financial evaluator in the business and economic field, making use of the lessons of theory and applications carried out in the computer lab, enriched by interactions with the teacher.

1. Linear optimization problems, with business applications; 2. Portfolio Models

BORTOT, MAGNANI, OLIVIERI, ROSSI E TORRIGIANI - Matematica Finanziaria (Monduzzi Editore - II ed. - 1998); BENNINGA, Simon, "Financial Modeling", 4th edition, Massachusetts Institute of Technology, 2014. Notes from the teacher

One theoretical and practice online frontal lesson (learning by doing in presence). Practice sessions for application of the theoretical aspects to the solution of case studies using Excel.

80% of the final grade will be reserved for activities performed during the course: 25% for each of the two team works presented [Enquiry-based learning] given by the teacher and 15% for each of the two team works presented given by the students (peer to peer evaluation). Final individual theory test on Moodle platform including (20% of the final grade). Students are allowed to reject the grade of the final exam and of the activities carried out during the Course. After the rejection the grade accumulated from the activities performed during the semester will be reset to zero and the student will be able to take the exam only as a "non-attendee". The "non-attendee" examination is composed of practical exercises, one for each part of the program e two theoretical test (also in this case, one for each part of the program) on the Moodle platform.

Interest in depth analysis of the topics provided by the course.