Course Topics
The course covers the tools of financial econometrics and empirical finance, with the focus on correlation analysis, classical linear regression and advanced time-series analysis. It introduces econometric modelling of financial prices and volatility, and estimation of some risk measures. Then, it extends to macro-finance problems. Strong emphasis is placed on the application of the models to real financial data.

Teaching format
The course will combine in-class explanation of the background material, problem-solving and case discussions. Students will be expected to participate actively in class work, which will give them the opportunity to apply theoretical concepts to realistic situations.

Educational objectives
ILO (Intended Learning Outcomes) ILO 1 – Knowledge and Understanding: ILO 1.1 Knowledge of a wide range of investment, financing, and risk management tools, starting from the fundamentals of portfolio diversification and the classical models for asset pricing and risk measurement ILO 1.2 Understanding of specific Finance topics that characterise the roles of Financial Analyst, Portfolio Manager, Chief Financial Officer (CFO), Administrative Manager, Controller, Internal Auditor, and Business Consultant ILO 1.3 Knowledge of theories and tools for the economic analysis of firms and markets. ILO 1.4 Understanding of basic forecasting models for conducting integrated economic and financial analyses, also using econometric methods for time series and multivariate analysis ILO 1.5 Knowledge of Big Data analysis techniques to support and integrate corporate decision-making processes ILO 2 – Applying Knowledge and Understanding: ILO 2.1 Ability to analyse complex problems in a national and international interdisciplinary context ILO 2.2 Ability to design coherent financial management strategies in companies or financial intermediaries, applying acquired knowledge in risk management techniques, asset valuation, and derivative handling ILO 2.3 Ability to understand the evolution of financial markets and changes in the international macroeconomic context ILO 2.4 Ability to analyse economic, managerial, and financial variables to support decision-making in companies and financial intermediaries ILO 3 – Making Judgements: ILO 3.1 Ability to relate models and empirical evidence in the study of companies, intermediaries, and financial markets. ILO 4 – Communication Skills: ILO 4 Ability to communicate effectively, both orally and in writing, the specialised content of individual disciplines, using different registers depending on the audience and the communicative and educational purposes, and to assess the educational impact of such communication ILO 5 – Learning Skills: ILO 5.1 Ability to develop general models based on the phenomena studied

Assessment
Final Exam (50%): The final exam is a combination of problems, cases, and essay questions. Optional assignment (50%): Case studies will be assigned during the semester to be completed in writing and presented in class by groups of students. The questions included in the final exam are aimed at assessing the acquisition of knowledge and understanding the ability to apply them to new situations as well as to evaluate the skill of the student to analyse and report on complex business transactions. The case studies also measure the student’s capability to search for the relevant regulatory and economic information that apply to a specific situation. If a student does not complete the assignment, the exam will weight 100%. (ILOs assessed 1-5)

Evaluation criteria
Final exam: 50% Assignment: 50% The student must pass the exam to have a passing grade in the course.