Probability and Statistics for the Finance Professional

Finance professionals tend to take coursework in technical analysis, fundamental analysis, and portfolio theory. However, the underlying principle in all of these disciplines is a solid understanding of probability and statistics. This class is specifically relevant to the finance community.

No sessions currently available. Contact client services to get the next available date.
CPE CREDITS
20.0
Traders, analysts, brokers, insurance professionals, and any other finance professional who desires to be savvier about the numbers underlying the numbers that they deal with each and every day.
No advance preparation required.
A financial calculator is required. Texas Instruments BA II Plus recommended.
Probability, Gambling, and Finance -- Practical Applications of Probability Theory in Finance and Life
  • Descriptive Statistics
  • Probability Models
  • Conditional Probability
  • Compound Events and Compound Probability
  • Bayes Theorum - 'Let's make a Deal'

Expected Value and Expected Return -- How do we devise criteria for making investment or other financial decisions? Do these criteria have any bearing on real life?
  • Expected Value
  • Expected Return
  • Populations and Samples
  • Monte Carlo Estimation

Risk & Return, understanding the trade-off. Mathematics of Portfolio Theory.
  • Beta
  • Delta
  • Gamma
  • Vega

Arbitrage: The Pure Convergence of Mathematics and Finance.
  • Statistical
  • Deterministic
  • Practical Discussion: Are there truly any arbitrage opportunities left anymore?

Placing Side Bets: The Mathematics of Derivatives I
  • The History of Hedging
  • Mathematics of Options
  • History of Options

Placing Side Bets: The Mathematics of Derivatives II.
  • 'Advanced' Option mathematics
  • Option Pricing Models
  • Other Derivative Products
  • Other Hedging Vehicles

More on Probability -- Technical Analysis
  • Theoretical basis for all charting
  • Understanding charts: How much do they really tell us? What they fail to tell us.

Special Topics: to be determined by the class.

Clients who register for this course will receive a complimentary 4-month subscription to FT.com. The Financial Times is the world's most respected financial newspaper, providing a broad assessment on finance, business and the industrial sector. The move to the electronic version follows an ongoing review of our environmental responsibilities as a global business and as part of the Pearson group. FT.com also has features that are not available in hard copy, such as: Special Reports, Alphaville, editor blogs, education sections and much more! Subscriptions will start within 6-8 weeks of the start of class and are limited to one subscription per client. (Please note: as of May 1, 2011, the electronic subscription replaces the hard-copy 3-month Financial Times subscription.)

Lunch is included for all students taking day classes.