Principles of Quantitative Finance
Students will learn the principles of Quantitative Finance, the application of quantitative methods to financial markets. First, students will learn some basic building blocks necessary for the design and implementation of quantitative financial modeling techniques. They will then learn about some simple quantitative finance models based on one of several parameters including historical price data, accounting earnings, cash flows and asset values. Students will also learn by doing. They will be assigned to three member Project Teams that will design and test their own financial models and create a virtual hedge fund using the Stocktrak system, which will allow them to trade virtually any publicly traded security in the world without the actual risk of gain or loss. Each team will make three short presentations to the class and will be evaluated on the 1) preliminary design, 2) implementation and 3) performance of their financial models and virtual hedge fund. In addition, each team will present a book report on one of a list of books provided by the instructor related to the field of Quantitative Finance.