Back to Financial Engineering and Risk Management Part I

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2,317 ratings

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453 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 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.

By Roger S

•May 18, 2020

The material is engaging, interesting, and challenging; the instructors' lectures are generally good quality and easy enough to follow. However, some of the quizzes are horrendous and lead to hours upon hours of frustration as you try to get the EXACT answer to enter into the input box in order for it to be accepted as "correct". Some of quizzes rely far too much on the minutiae of Excel spreadsheet fine-tuning and can be VERY frustrating to navigate. It might be better to test general understanding of concepts or find some other way to design these quizzes. Otherwise, good course.

By Mbakisi

•Jun 7, 2020

It is an interesting course that introduces you to the various models used in financial engineering. I would recommend it to anyone aspiring to become a Quant and seeking to lay a foundation in that field. However there is room for improvement as the material will not have settled down before the introduction of new material as the weeks go by.

By Ajay S

•Sep 3, 2015

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

By Jedidiah D G

•Jan 4, 2020

Lack of examples/problems worked out in the videos. Can be difficult to pass quizzes accordingly

By cornelispaulus@hotmail.com

•Jul 8, 2018

InterestIngHOwever,IwouldliketoseemorenumerIcalexamples

By Matteo B

•Jul 31, 2020

this course lacks examples and explanations that are not just formulas read out during the "classes". the quizzes will ask you to compute something you have never seen before, expecting you to understand how to reform some obscure, unexplained formula a couple of classes ago. It is a shame because it is a very interesting subject, but the course suffers from the defect that (probably) great practitioners often do not make great teachers.

By John H

•Aug 11, 2020

I only attempted the first 2 weeks before giving up. The instructor would mostly read each confusing powerpoint slide at verbatim without adding much learning value.

By Mansi B

•May 3, 2020

I find the explanation very hard to catch up to. Even the simple examples seem very vague and it just seems like going through random equations and theorems. Maybe its the syllabus, but its not that easy to grasp and make sense of. I have studied complex financial concepts but using equations is new and despite having a thorough background in financial studies, i find it difficult to grasp. I think once the topic is introduced, it should be developed on further instead of discussing other concepts briefly. Without much understanding of the first concept, moving onto just a brief discussion of of another topic seems confusing and easy to forget. I am still trying to get through the course and its a little challenging to get finish the slides.

By Sooraj V

•Oct 30, 2020

After seeing the name and the description I signed up for this course. But the stupid professor is simply reading the slides. I felt very bad about the way he teaches. He talks with a stoic face with zero emotion and completely failed to create any interest in me. I never expected such kind of a quality from such a good university. Very bad choice.

By Selam M

•Aug 25, 2020

There is not enough explanation as to the things to be tested on. The lessons and the tests are completely different. On top of that the teacher jumps too many necessary points in his explanations.

By Shweta

•Jun 7, 2020

Zero course clarity. The professors made no effort to teach the numericals to support the theorems taught. They were rather just reading what was already there in the presentation.

By Hamd S

•Jun 25, 2020

Very poor method of creating concepts and no help in solving at least one question. A conceptual course being taught as a theoretical course is a shame.

By Michael Y N E

•Dec 4, 2018

I enrolled it by wrong it is very faraway from my career and my education i want to un-enrolled it

By XTremeAchilles

•Mar 30, 2020

Everything will go beyond your head. Quizes are nearly unslovable. Waste of Money and Time.

By Aliraza R

•Dec 24, 2015

Examples have to be more clear. i cant seem to get anything correct because of computers

By YUN L

•Jul 31, 2020

Very hard to understand. The way the lecture talks make it even harder.

By Su m

•Jul 29, 2020

too hard

By Ryan

•Feb 16, 2021

Great course! First of all: To the lecturers: Thanks a lot and I encourage you to keep spreading the knowledge! And to the course instructors and fellow course participants: Thanks a lot for the helpful discussions on the forums! My advise (to those who might need it): You need to have or build the perseverance to get through, but it's worth it in the end! If the quizzes get tough, try not to get upset or frustrated, but just try again and carry on. Eventually you will succeed! Halfway through it might get challenging (especially Week 4 quiz - at least for me), but I got through. Remind yourself that the quizzes are there to challenge your critical thinking and level of understanding of the body of knowledge. If I can make it to the end, you certainly can! Alright.. Enjoy learning & All the very best!

By Bhavya S J

•May 10, 2020

Fantastic start for someone who wants to delve into the world of finance. Concepts focus on mathematical modelling of various financial instruments, with detailed theoretical explanations of the structure of derivatives. As someone wanting to pursue quantitative finance and from an engineering background, this course was stimulating from an engineer's perspective, and had adequate amounts of theoretical information as well to supplement learning. One of the few courses on Coursera that took me more time than that stipulated on the course bulletin.

On a side note, I feel the quizzes should test more conceptual knowledge ,which was true for the first couple of weeks, but later turned into an exercise in MS Excel, maybe because of the computational nature of the course.

By Sourodeep K

•Jul 31, 2020

This course introduced to the various Mathematical models related to pricing financial derivatives and fixed-income securities through the use of Probability Theory and Stochastic Calculus. This is course is recommended for anyone who has an interest in learning about the mathematical stories of financial securities and their pricing. I think the professors have done a great job of putting across the concepts to the students of this course. The quizzes help in testing the knowledge acquired and the questions involved working analytically and also working in excel. I extend my thanks to Columbia University for putting such an interesting course on Coursera. I am sure the learnings from this course will play a key role in building my career in finance.

By vijay v

•Oct 4, 2017

This is very compact course without compromising essence and worth watching video lectures many times. Materials were of top quality and provided wast amount of fundamental. I cram some information to begin with and ask question myself to get deep insight. On review of of some videos when I saw professor asked same question and explained with illustration, that style of teaching proved very effective as it developed better understanding. Looking forward for more courses on same subjects and similar style!

By Abraham R

•Nov 9, 2018

I found it to be a very interesting course and the teachers were very clear in their concepts, as well as an excellent didactic material to better understand the topics covered. I thank Coursera for the teachers and the monitors who were always very attentive to answer the questions and help solve the problems that arose in the preparation of the tasks.

The classmates were very supportive and gave light when one had problems to solve the tasks.

Thanks a lot to everyone.

By Yongxuan L

•Feb 6, 2016

Good course. Personally I think it is almost the perfect level for those who have some basic understandings about finance and look forward to go deep(such as me). This course requires some understanding about using Excel, which is quite useful when doing the quiz. Mastering Excel well would save a lot time. Some material might be a little hard but with patience and hardworking, it can still be solved. Highly recommended!

By Mary-Anne B

•Jul 18, 2017

I have enjoyed this course thoroughly. With a full time job and two young children it has demanded a great deal of juggling but has been worth it. If you appreciate a thorough and clear presentation of essential principles then this is the course for you. The assignments were sufficiently challenging but more importantly they elucidated key points presented in the lectures. I am definitely going to attempt Level 2

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