FINANCIAL ECONOMICS

Nicola Borri

Obiettivi formativi

This class will provide an advanced analysis of asset pricing theory, financial instruments, and investment strategies.

Prerequisiti

Basic coding (any language). Basic math, statistics, and probability

Risultati di apprendimento attesi

Students are expected to learn state-of-the-art asset pricing models and understand the relationship between risk-return. The focus of the class is applied and students will use Matlab/Python for applications.

Contenuti Del Corso

This class will cover the following topics: 1) Introduction to financial time-series 2) Utility based asset pricing 3) Basic portfolio theory and practice 4) Equilibrium in capital markets 5) Investment strategies for equities, bonds and currencies 6) Investing in the crypto space

Testi Di Riferimento

Python for Finance by Yves Hilpisch and material supplied by the instructor (including, papers, lecture notes and slides).

Metodologie Didattiche

In class lectures, assignments, in-class tutorials, investment games

Modalità di verifica dell'apprendimento

Problem sets (30%), class discussions, writing a paper (bonus point), midterm (30%) and final (40%) exams

Criteri per l’assegnazione dell’elaborato finale

The criteria established by the Director of the LM in Finance as well as those stated by the Department of Economics and Finance.

Settimana 1

Introduction and stylized data, Bloomberg tour

Settimana 2

Review of finance notation, probability and statistics, matrix algebra 20/9 deadline assignment 1

Settimana 3

Asset classes and financial instruments 27/9 deadline assignment 2

Settimana 4

Utility based asset pricing models: theory and evidence

Settimana 5

Utility based asset pricing models: theory and evidence 11/10 deadline assignment 3

Settimana 6

Utility based asset pricing models: theory and evidence

Settimana 7

Utility based asset pricing models: theory and evidence 25/10 deadline assignment 4

Settimana 8

Expected Returns in the Time Series and in the Cross-Section 31/10 MIDTERM

Settimana 9

Expected Returns in the Time Series and in the Cross-Section

Settimana 10

Factor models and investment strategies 15/11 deadline assignment 5

Settimana 11

Cryptocurrency Finance

Settimana 12

Liquidity 29/11 deadline assignment 6