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
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.