• Introduction
• Importance of financial econometrics
• Basic statistical concepts
• Predictability of asset returns
• Inferential statistics: Confidence intervals and testing hypotheses
• Classic linear model
• Multivariate regression

Quantitative Methods in Finance combines statistical and econometric tools and financial theory. The objective of this course is to present the main statistical and econometric methods that are required for the analysis of financial data and different financial theories.

On successful completion of this course students will have knowledge of:

• descriptive statistics (measures of position, measures of dispersion, measures of distribution) and inferential statistics (estimation, confidence intervals and testing hypotheses)
• the classic linear model and its useful practical applications, such as CAPM (capital asset pricing model)
• verification of the existence of efficient markets (efficient market hypothesis), the estimation of beta coefficient etc.
• the multivariate linear model along with several interesting extensions and practical applications (multifactor models)
• empirical applications, accompanied by econometric violations which are encountered on estimating the models such as autocorrelation and heteroscedasticity
• EViews statistical package for econometrics analysis.