Financial Engineering and Risk Management Part II
- 4.7
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Approx. 17 hours to complete
Course Summary
Learn how to apply engineering methodologies to financial markets and instruments in this comprehensive course, covering topics such as risk management, financial derivatives, and portfolio optimization.Key Learning Points
- Gain a deep understanding of financial engineering and its applications in the real world
- Learn how to manage risk and use financial derivatives to optimize investment portfolios
- Explore the latest tools, techniques, and strategies used by financial engineers
Job Positions & Salaries of people who have taken this course might have
- USA: $107,000
- India: ₹2,227,000
- Spain: €55,000
- USA: $107,000
- India: ₹2,227,000
- Spain: €55,000
- USA: $98,000
- India: ₹1,713,000
- Spain: €50,000
- USA: $107,000
- India: ₹2,227,000
- Spain: €55,000
- USA: $98,000
- India: ₹1,713,000
- Spain: €50,000
- USA: $91,000
- India: ₹1,600,000
- Spain: €45,000
Related Topics for further study
Learning Outcomes
- Apply financial engineering methodologies to real-world scenarios
- Develop a deep understanding of risk management techniques
- Optimize investment portfolios using financial derivatives
Prerequisites or good to have knowledge before taking this course
- Basic knowledge of finance and mathematics
- Familiarity with statistical software such as R or Python
Course Difficulty Level
AdvancedCourse Format
- Online Self-Paced
- Video Lectures
- Quizzes and Assignments
Similar Courses
- Introduction to Financial Engineering
- Advanced Financial Modeling
- Quantitative Finance and Risk Management
Related Books
Description
Financial Engineering is a multidisciplinary field involving finance and economics, mathematics, statistics, engineering and computational methods. The emphasis of FE & RM Part II will be on the use of simple stochastic models to (i) solve portfolio optimization problems (ii) price derivative securities in various asset classes including equities and credit and (iii) consider some advanced applications of financial engineering including algorithmic trading and the pricing of real options. We will also consider the role that financial engineering played during the financial crisis.
Outline
- Mean-Variance Analysis and CAPM
- Overview of Mean Variance
- Introduction to Mean Variance in Excel
- Efficient Frontier
- Mean Variance with a Risk-free Asset
- Risk-free Frontier in Excel
- Capital Asset Pricing Model
- Lesson Supplements
- Quiz Instructions
- Mean-Variance Analysis and CAPM Problem Set
- Practical Issues in Implementing Mean Variance
- Implementation Difficulties with Mean Variance
- Negative Exposures and Leveraged ETFs
- Beyond Variance
- Statistical Biases in Performance Evaluation
- How Should Average Returns be Computed?
- Survivorship Bias and Data Snooping
- Lesson Supplements
- Quiz Instructions
- Practical Issues in Implementing Mean Variance Problem Set
- Equity Derivatives in Practice: Part I
- Review of the Binomial Model for Option Pricing
- The Black-Scholes Model
- The Greeks: Delta and Gamma
- The Greeks: Vega and Theta
- Risk-Management of Derivatives Portfolios
- Delta-Hedging
- The Volatility Surface
- Lesson Supplements
- Quiz Instructions
- Equity Derivatives in Practice: Part I
- Equity Derivatives in Practice: Part II
- The Volatility Surface in Action
- Why is There a Skew?
- What the Volatility Surface Tells Us
- Pricing Derivatives Using the Volatility Surface
- Beyond the Volatility Surface and Black-Scholes
- Lesson Supplements
- Credit Derivatives and Structured Products
- Structured Credit: CDOs and Beyond
- The Gaussian Copula Model
- A Simple Example: Part I
- A Simple Example: Part II
- The Mechanics of a “Synthetic” CDO Tranche
- Computing the Fair Value of a CDO Tranche
- Cash and Synthetic CDOs
- Pricing and Risk Management of CDO Portfolios
- CDO-Squared's and Beyond
- Lesson Supplements
- Quiz Instructions
- Credit Derivatives and Structured Products
- Other Applications of Financial Engineering
- Liquidity, Trading Costs, and Portfolio Execution
- Optimal Execution
- Portfolio Execution
- Optimal Execution in Excel 1
- Optimal Execution in Excel 2
- Real Options
- Valuation of Natural Gas and Electricity Related Options
- Real Options in Excel
- Lesson Supplements
- Quiz Instructions
- Other Applications of Financial Engineering
- Background Material
- Review of Basic Probability
- Review of Conditional Expectations and Variances
- Review of Multivariate Distributions
- The Multivariate Normal Distribution
- Introduction to Martingales
- Introduction to Brownian Motion
- Geometric Brownian Motion
- Review of Vectors
- Review of Matrices
- Review of Linear Optimization
- Review of Nonlinear Optimization
- Lesson Supplements
Summary of User Reviews
Discover the world of financial engineering with this course on Coursera. Students rate this course highly for its comprehensive coverage of financial engineering concepts and practical applications. One key aspect that many users thought was good is the hands-on approach to learning, with real-world examples and case studies.Pros from User Reviews
- Comprehensive coverage of financial engineering concepts and practical applications
- Hands-on approach to learning with real-world examples and case studies
- Structured course content that is easy to follow
- Engaging and knowledgeable instructors
- Excellent support from the Coursera community
Cons from User Reviews
- Some users found the course content to be too technical
- Not enough emphasis on advanced financial engineering topics
- Lack of interaction with instructors
- Limited opportunities for networking with other students
- No official certification or accreditation upon completion
Martin Haugh
4.7 Raiting
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