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QTM3625: Financial Simulation

QTM3625 Financial Modeling Using Simulation and Optimization with Applications to Finance, Marketing, and Management
4 Advanced Liberal Arts Credits

This course is an introduction to quantitative techniques that enable marketing, finance, and management professionals to make optimal decisions under uncertainty. While theoretical background for these techniques is provided, the focus is on their applications and mastering software that is widely used in industry, such as Excel, Solver, @RISK, and MATLAB. Topics include simulation of important probability distributions, bootstrapping, random walks, linear and nonlinear optimization. Lectures draw on examples such as asset allocation under different definitions of risk; index tracking; scenario approaches to project and portfolio management; hedging and arbitrage; and derivative pricing.

Prerequisites: AQM2000

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