Back to Financial Engineering and Risk Management Part I

stars

2,300 ratings

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452 reviews

Financial Engineering is a multidisciplinary field drawing from finance and economics, mathematics, statistics, engineering and computational methods. The emphasis of FE & RM Part I will be on the use of simple stochastic models to price derivative securities in various asset classes including equities, fixed income, credit and mortgage-backed securities. We will also consider the role that some of these asset classes played during the financial crisis. A notable feature of this course will be an interview module with Emanuel Derman, the renowned ``quant'' and best-selling author of "My Life as a Quant".
We hope that students who complete the course will begin to understand the "rocket science" behind financial engineering but perhaps more importantly, we hope they will also understand the limitations of this theory in practice and why financial models should always be treated with a healthy degree of skepticism. The follow-on course FE & RM Part II will continue to develop derivatives pricing models but it will also focus on asset allocation and portfolio optimization as well as other applications of financial engineering such as real options, commodity and energy derivatives and algorithmic trading....

DP

Mar 8, 2020

I have an engineering / numerics background and enjoyed this course very much. Good overview and comprehensive explanation of mathematical models of fixed income and equities as well as derivatives.

MM

Jul 11, 2017

I appreciate how this course not only discusses the concepts in technical detail, but actually delves into the mathematics of the subject matter, and teaches how to actually do the actual work inv

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By Tatsunari W

•Mar 19, 2017

The course is very elementary and basic. It should be a good intro 101 for those who have never studied mathematical finance. You can also practice using Excel if you have never used it before. It could be more challenging and fun if there were more modeling questions.

By Ishaan K

•Dec 10, 2017

please help with questions given as test for better clearity.

By Michael J

•Aug 16, 2016

Unfortunately, no tutors/instructors present to supervise the course, which made inconsistencies between course material (slides, videos) and solutions calculated for assignments horribly annoying to deal with, especially for someone like me new to the topic. Further, the solver addin (needed for the week 6 assignment) is not consistent across different excel versions and libre calc, which resulted in a whole lot of guesswork to pass this assignment. I'm sorry to say the course never came close to my expectations, despite the very interesting topic. Would not recommend.

By Truquet O

•Jul 9, 2018

The explanations are not clear and only a few exercises presented in the quiz were covered in the course videos. There is no exercise book to prepare for the exercise of the quiz.

By Haris M S

•Feb 16, 2019

No help was granted during the practice of the course. I din't find the course helpful for future growth in a company as company doesn't consider it to be as professional.

By Ziping D

•Dec 27, 2015

It is a little sad that the materials taught were not matching test materials well in the quiz.

By Hoo K L

•Oct 29, 2015

This course is conducted mostly more or less by reading just the slides.

By Michael N R

•Jun 13, 2016

Not at all what I expected--big disappointment

By Agil Z

•Jul 18, 2020

A very well designed course! I knew some topics prior to the course and it helped me to strengthen my knowledge on derivative market systematically, particularly on interest rate derivatives

By Erick G

•Aug 11, 2015

The content of this course is apropiate for drive the finances and risk, We be lear more about this course

I am Engenier in Sofware, the know of finances is aplicable in anyware software.

By Oluwatobiloba A

•Aug 9, 2020

The course is the clearest and most informative content on FRM I have come across. Thank you University of Columbia for this opportunity

By Michael A R

•Mar 31, 2017

Good introduction to term structure modeling, arbitrage and other similar topics, quizes were challenging and required independent thought. Good course overall, the lack of guidance on incorrect quiz questions except for through the forum is the only reason for a loss of star.

By Morgan S

•Aug 9, 2016

Good course for a dry subject. I feel that the modeling could've been more thoroughly explain. For example, the professor could've used cases to analyze/explain what relationships between variables signify in greater detail.

By Zhen Y

•Jan 30, 2018

Some unnecessarily introduced math formula hamper the understanding of the subject itself. Lack of simple, straightforward definition of finance terms.

By Pengchong L

•Dec 31, 2017

Lots of practical exercises with not enough explanations on the underlying reasoning/theory.

By Weijia C

•Jul 18, 2017

Some of the knowledge points lack good examples to support and prove.

By Jonathan W

•Mar 24, 2017

The only reason i passed was because i ignored the lectures and asked others for help, once i did that finance became a lot easier to understand.

By Jason S

•Dec 23, 2015

This course is a great, from the perspective of how it is organized as well as the assignments provided at the end of each module. The way the content layout is well-suited and leads student step by step gaining insight to the mechanics of different financial derivatives and working on those assignments is a great method of pushing student spend time to understand how the mechanics works.

Both instructors are great! and I appreciated greatly their effort as well as Coursera.

The only one improvement I would suggest is that if a TA can be assigned for this course, it'll be a great help to all students.

Thanks!

By David P

•Mar 9, 2020

I have an engineering / numerics background and enjoyed this course very much. Good overview and comprehensive explanation of mathematical models of fixed income and equities as well as derivatives.

By Kolybina A

•Nov 26, 2017

The material is clear stated, the volume and the deepness of the course is substantial, the supplements are very helpful. The spreadsheets can even use as basis for practice modelling.

By Marco D L

•Jun 10, 2017

Great course. However to get the highest score in the assignments you are sometimes required to understand concepts not explained in the videos or slides.

By Orazio B

•Dec 1, 2015

A very interested course. Only suggestion:

a. if possibile more interation with the professors

b. being more realistic in the case studies

By Chintamani D

•Apr 16, 2021

There are many assumptions made regarding the candidates capability in understanding the concepts. Now being from finance background I knew very well what was happening. But after a certain point in the course they begin to introduce very complex material and try to fit the explanation in a few minutes which I personally don't think is possible to understand. The worst part is when the questions asked in the quiz are extremely complex and require a very good and deep understanding of what's going on but the lectures had very little to nothing to explain similar type of questions so as for candidates to understand and apply a similar logic in solving those questions. I did use google to get more information and deep explanations of the concept to get a better grasp. The quizzes are really difficult and the lectures don't really help that much. But its a very informative course and definitely gives you a great advantage if you understand things well.

By Andrew M

•Jun 11, 2020

The course is OK. You can learn the material if you work hard to find external sources to help.

A few problems with the course... First, the people speaking in the lectures seem to be speed reading off of a piece of paper, trying to make every video below a certain time threshold. It feels less like teaching, and more like listening to someone read. Second, the handwriting is pretty bad throughout, sometimes illegible. Third, the course significantly lacks example problems along with solutions (showing work) to those problems. Lastly, this course lacks practicality. It would be nice to understand more about uses (expand on calibration of binomial options models, for example).

I have coded some examples for those looking for an extra place to learn the algorithms/math associated with some of the important points of this course: https://github.com/amittleider/FinancialEngineering .

By Ved B

•Apr 30, 2020

The course content is excellent and is very wisely chosen. However more simplification is necessary. For a student with good knowledge of financial derivatives but limited knowledge of the mathematics behind it, the explanation provided by the instructors may prove to be highly insufficient (from week 4 onwards). More examples should be added by the instructors so as to make the content interesting. Interview with Emmanuel Derman was note worthy.

One more suggestion - the exercises seemed difficult in relation to the course content. A slight mismatch in the answers ( 5.62 vs 5.63) is taken as an incorrect entry. The instructors may consider providing a short range of correct answers in the system so that such mismatches do not occur.

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