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.
Offered By
Financial Engineering and Risk Management Part II
Columbia UniversityAbout this Course
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Learner Career Outcomes
23%
started a new career after completing these courses
39%
got a tangible career benefit from this course
20%
got a pay increase or promotion
Flexible deadlines
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Shareable Certificate
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Approx. 17 hours to complete
English
Subtitles: Arabic, French, Portuguese (European), Russian, English, Spanish
Skills you will gain
Real Options ValuationDerivative (Finance)Risk ManagementReal Options
Learner Career Outcomes
23%
started a new career after completing these courses
39%
got a tangible career benefit from this course
20%
got a pay increase or promotion
Flexible deadlines
Reset deadlines in accordance to your schedule.
Shareable Certificate
Earn a Certificate upon completion
100% online
Start instantly and learn at your own schedule.
Approx. 17 hours to complete
English
Subtitles: Arabic, French, Portuguese (European), Russian, English, Spanish
Offered by
Columbia University
For more than 250 years, Columbia has been a leader in higher education in the nation and around the world. At the core of our wide range of academic inquiry is the commitment to attract and engage the best minds in pursuit of greater human understanding, pioneering new discoveries and service to society.
Syllabus - What you will learn from this course
2 hours to complete
Mean-Variance Analysis and CAPM
Problem formulation and solution; the efficient frontier; including the risk-free asset; the Capital Asset Pricing Model (CAPM);implications of CAPM: α, β, security and capital market lines
2 hours to complete
6 videos (Total 97 min), 2 readings, 1 quiz
3 hours to complete
Practical Issues in Implementing Mean Variance
Problems with mean-variance analysis; ETFs and leveraged ETFs; VaR and CVaR for asset allocation; survivorship bias, performance evaluation and other statistical pitfalls.
3 hours to complete
6 videos (Total 103 min), 2 readings, 1 quiz
3 hours to complete
Equity Derivatives in Practice: Part I
Problems with mean-variance analysis; ETFs and leveraged ETFs; VaR and CVaR for asset allocation; survivorship bias, performance evaluation and other statistical pitfalls.
3 hours to complete
7 videos (Total 112 min), 2 readings, 1 quiz
2 hours to complete
Equity Derivatives in Practice: Part II
More about Black-Scholes, the Greeks and delta-hedging; the volatility surface; pricing derivatives using the volatility surface; model calibration.
2 hours to complete
5 videos (Total 82 min), 1 reading
Reviews
TOP REVIEWS FROM FINANCIAL ENGINEERING AND RISK MANAGEMENT PART II
by YSJun 27, 2016
Very similar style with Part I. The instructors are clear in explaining the models. However, it would be more useful if the instructors can give several real-world examples on the financial market.
by SYJun 7, 2019
I really enjoyed this course and learned a lot. The quizzes were challenging but really forced me to think through the problems. The forums were very helpful when I got stuck. Thanks Professors!
by TRAug 30, 2020
Great course. It is very useful to get into Financial Engineering Topics. The tests are not easy, so every week presents a challenge that forces you to deeply understand what is being taught.
by MUAug 22, 2018
One of the best courses available on Coursera! If you're interested in Quantitative Finance or trying to get a good idea of what financial engineering entails, please take this course.
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