Back to Financial Engineering and Risk Management Part I

4.6

1,747 ratings

•

309 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....

Jul 12, 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

Oct 21, 2019

Perfect course to grasp the fundamental theories in financial engineering and risk management! I deeply appreciate the videos and lecture notes! Hopefully, I can start the next course soon :)

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By Michael C M

•Jul 12, 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

By Hugo R M M

•Mar 05, 2019

Curso voltado para a precificação de ativos diversos, como ações fundos, swaps, etc... Houveram poucos exemplos durante as aulas, o que torna as provas bem difíceis. No início, vemos coisas próximas da nossa realidade, mas, depois da 3° ou 4° semana de curso, a entramos em um leque de ativos pouquíssimo conhecidos e utilizados na nossa realidade.

By harsheel

•Jul 06, 2019

Too difficult to understand for a beginner.

By Patrick M K

•Jun 03, 2018

This class is a total waste of time and money.

1-The presenter's English is not up to code, so to speak.

2-The examples are purely theoretical and lack any kind of real numbers. Greek characters proliferate unnecessarily, adding to confusion.

3-The course materials make no effort to explain formulas in a clear and concise manner.

Don't waste your time and money like I did.

By Ishaan K

•Dec 10, 2017

please help with questions given as test for better clearity.

By Truquet O

•Jul 09, 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 Gabriel Z

•Nov 18, 2016

I think the way it is taught is not very insightful, the lecturers clearly just read a script and make it difficult to follow. They assignment questions are often hard to understand. Most importantly, there is very little about the actual mechanism behind pricing financial instruments, instead they just state the formula.

By Yuqin L

•Nov 20, 2017

not sure about the whole course, but the week 1 training video is basically an instructor reading a script.

By Oluwatobiloba A

•Jul 15, 2019

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

By NGUYỄN Q T

•Jan 20, 2017

This course is amazing. The structure is very clear and coherent. It is very mathematically focused and the models are interesting. I would always recommend this course to my colleagues.

By Andrea R

•Oct 27, 2018

This course effectively provides an introductory overview of the basic concepts in financial engineering world (arbitrage, discounting, fair pricing etc). I would have prefer more mathematical insight, but indeed the use of basic mathematical tools was pointed out as intentional in the course presentation. Exercises at the end of each module are really helpful to clarify the concepts exposed during the lessons. Considering the limited amount of hours devoted to such complex arguments, this course fulfills its promises.

By Priyanshu D

•Jun 16, 2019

Very helpful and very well taught course. Felt a bit short. I wish it also touched upon stochastic models for option pricing and stochastic calculus in its week 8 syllabus. Thank you for the course, overall it was a nice experience.

By sebastian w

•Feb 27, 2016

Challenging course but I've really got a good sense of the mechanics of main financial instruments such as bonds, options, futures, swaptions, etc. Being able to do all the exercises in Excel is pretty convenient. Exercises are difficult because there is no feedback - it's either right or wrong.

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 Marco D L

•Jun 11, 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 01, 2015

A very interested course. Only suggestion:

a. if possibile more interation with the professors

b. being more realistic in the case studies

By Morgan S

•Aug 09, 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 NIRAVSINH S

•Dec 12, 2015

good learning with explanation on basic financials

By Joris D

•Oct 18, 2015

The course provides a very thorough introduction on the basic models and mechanisms by which various financial products are priced. One issue I had, was that the quiz questions sometimes used terminology or jargon for which the link with the material covered in the videos was not always immediately obvious. Also, the course, especially the later modules, heavily relies on Microsoft Excel, which some people might not be willing to pay hard cash for. It is possible to pass by doing the assignments with e.g. Python, but it's a lot of work, and not for the faint of heart.

By Ajay S

•Sep 03, 2015

Three stars for course structure, two stars less for every poor course material which doesn't contain any guidance to test questions.

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 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 Cor v H

•Jul 08, 2018

InterestIngHOwever,IwouldliketoseemorenumerIcalexamples

By Weijia C

•Jul 18, 2017

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

By Pengchong L

•Dec 31, 2017

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

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