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STAT 461

FINANCIAL STATISTICS

3 credits.

Today's cutting-edge quantitative trading strategies are based on complex stochastic models of financial data. Specialized statistical techniques are needed to analyze them. Study the advanced statistical methodologies now widely employed in modern finance. Topics include: discrete models such as binomial trees and GARCH; continuous models such as the Black-Scholes model; and stochastic volatility models. Emphasis will be on data analysis and statistical inference in these models, with applications to risk management. Learn about the models real quantitative traders use in their work.

Topics

Topics explicitly listed in official catalogue description

Prerequisites & course information

Requisites: ( STAT 333 , 340 , or ECON 410 ) and ( MATH/STAT 309 , STAT 311 , MATH 331 , MATH/STAT 431 , or MATH 531 ), graduate/professional standing, or declared in Statistics VISP Course Designation: Core GenEd - Natural Science & Wellness Level - Advanced L&S Credit - L&S Liberal Arts and Science Repeatable for Credit: No Last Taught: Fall 2026 Learning Outcomes: 1. Describe basic stochastic models used in pricing financial instruments. Audience: Undergraduate 2. Develop statistical inferences for financial applications to volatility analysis and risk management. Audience: Undergraduate 3. Use computer packages to perform statistical analysis of financial data. Audience: Undergraduate 4. Interpret statistical analysis in the context of financial applications Audience: Undergraduate Learning Outcomes: 1. Describe basic stochastic models used in pricing financial instruments. Audience: Undergraduate 2. Develop statistical inferences for financial applications to volatility analysis and risk management. Audience: Undergraduate 3. Use computer packages to perform statistical analysis of financial data. Audience: Undergraduate 4. Interpret statistical analysis in the context of financial applications Audience: Undergraduate

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