## Learning objectives

SKILLS TO BE DEVELOPED AND LEARNING OUTCOMES EXPECTED

1) Knowledge and understanding.The course aims to provide the basic

tools most suitable for the analysis of some fundamental aspects of

monetary and financial market. In module I, particular attention will be paid to time

series of financial issues: exchange rates, interest rates, prices and

equity returns, prices and yields of derivatives.

During the II module, the students will learn the basic concepts of probability theory, which are employed to construct and analyze models of financial markets under uncertainty.

The student will also learn the basic principles of arbitrage pricing and completeness in the market, notions which will be described and analyzed in detail in an elementary model but can be easily extended to more complicated frameworks. Finally, we will illustrate how to represent preferences for a rational decision maker and how to optimally select of a portfolio, given the returns and covariances of the traded assets.

2) Ability to apply knowledge and understanding . At the end of the

course, the student will be able to implement in an autonomous way the

techniques described above. The student will have therefore

developed specific skills, they are associated with critical skills for

diagnostic, which are essential ingredients in building a good statistical and probability

model, with the possible assistance of the appropriate level of computer

tools.

3) Making judgments .At the end of the course, the student will be able to

perform independently all the considerations regarding the problems of

analysis of financial time series correctly interpret the results of such analyses, even when made by other

users or experts. The student will also be able to construct an elementary model for a financial market under uncertainty, to analyze the properties of this market and compute in this framework prices of derivatives and portfolio strategies.

4) Communication skills . At the end of the course, the student will be

able to use appropriate technical language in communicating with the

operators of financial markets.

5) Learning skills. We want to give the student the opportunity to

assimilate the key results of the statistical and probability theory that

form the basis of building a statistical model of a financial model under uncertainty. At the end of the course,

the student will have acquired the key concepts to be able to accurately

use quantitative tools, if they become necessary in the solution of

concrete problems of a financial nature.