Course Outlines

Course Description

The industry landscape of investment, trading, and risk management has been revolutionized by computing technologies, data science, and quantitative finance. To progress in tandem with these changes in the industry, the topics covered in this course include Alternative ETF Construction, Market Microstructure, and Algorithmic Trading.

In addition to mathematical modeling, an important part of this course is the practical aspect: computational implementations with statistical tests. Given that implementation and test procedures are involved, this quantitative finance course is algorithmic and hands-on in nature.

Lecture Slides

Topic 1:   Introduction     Indexes

Topic 2:   Random Walks and Variance Ratio Tests

Topic 3:   Event Study

Topic 4:   Asset Pricing Models

Topic 5:   Principal Component Analysis

Topic 6:

Topic 7:   Introduction to Market Microstructure

Topic 8:   The Roll Model of Trade Prices

Topic 9:   Kyle's Model

Topic 10:   Algorithmic Trading

Topic 11:   Price Impact

Homework Assignments

  • Assignment 1
  • Assignment 2
  • Assignment 3
  • Assignment 4

  • Mini Real-World Project

  • Project Description
  • Project Data: 120 stocks and risk-free rate

  • Python Programming

  • An Introduction to Python: Gettng Started
  • Multiple random walks
  • A random walk with drift and volatility envelop
  • Price-weighted index
  • Equally weighted index