JEM059 - Quantitative Finance I

Credit: 6
Credit ETCS: 6
Hours weekly: 2/2
Status: English
F,FM and B - elective
Masters - all
MEF - elective
Semester - winter
Obligatory courses:
Recommended courses:
Course supervisors: PhDr. Jozef Baruník Ph.D., ČEZ Chair
Mgr. Lukáš Vácha Ph.D.
Teachers: PhDr. Jozef Baruník Ph.D., ČEZ Chair
Mgr. Lukáš Vácha Ph.D.
Assistants:
Schedule: Each Tuesday, room no.206, start 15:30
Announcements:
Literature: Campbell, Lo and MacKinlay (CLM): The Econometrics of Financial Markets,
Princeton, 1997.

Tsay R.S.: Analysis of Financial Time Series, Wiley, 2002.

Hamilton J.C. (HJ): Time Setries Analysis, Princeton, 1994

Evzen Kocenda, Alexander Cerny (2007) Elements of Time Series Econometrics. The
Karolinum Press, UK

Walter Enders (2004) .Applied Econometric Time Series, Second Edition

Hommes CH (2006) Heterogeneous agent models in economics and finance. In:
Tesfatsion L, Judd KL (eds) Handbook of computational economics, agent-based
computational economics, vol 2. Elsevier Science BV, Amsterdam, pp 1109–1186

J. Baruník and L.Vácha (2007-2011): Lecture Notes
Description: The objective of the course is to introduce advanced time series methods. Students will be able to use the modern financial econometric tools after passing this course and will be prepared to continue in the Quantitative Finance II course. Part of the course is also focused on the high frequency data econometrics.
Content: 1. Introduction to Financial Time Series (Assets, Prices, Random Walk, Moving average Models

2. Predictability of Asset Returns - Definitions, Testing Random Walk, Unit Root

3. Linear Models of Financial Time Series - Moving Average Models, AR, ARMA, ARIMA.

4. Linear Models of Financial Time Series II - Moving Average Models, AR, ARMA, ARIMA.

5. Introduction to Nonlinearities in Financial Data I

6. Introduction to Nonlinearities in Financial Data II

7. High-frequency financial models - Microstructure noise

8. High-frequency financial models - Simulation of continuous-time processes

9. High-frequency financial models - Realized Measures

10. High-frequency financial models II - Realized Measures

11. High-frequency financial models - Forecasting
Seminar:
Examination dates:
Course requirements: Final Exam: 40%
Midterm Exam: 20%
Homeworks: 40%

All the Lectures are Available Online Here.
Downloadable: Syllabus 2012/2013