## Pre-Master Course for Finance € 500.00 | € 500.00 (Members) |

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### Time Value of Money Prof. M. De Ceuster This session explores the basics of time value of money calculations. After reviewing the day count conventions, we introduce compounding and discounting at various frequencies including continuous compounding. At the end of the study, you will be able to:Draw a time line illustrating a set of cash flows.Know the different business and day count conventions.Understand the rules of simple interest rate calculations.Understand the rules of compounded interest.Understand the NPV rule.

Slides for the Pre-Master Course (Size: 17.90MB)
Self-Testing: Getting Started
Business Day and Day Count Conventions (Length: 0:20:53 ) Test
Self-Testing: Business Day and Day Count Conventions
Simple Interest Rate Calculations (Length: 0:17:16 ) Test
Self-Testing: Simple Interest Rate Calculations
Potential Problems with Simple Interest Rate Calculations (Length: 0:11:06 ) Test
Self-Testing: Potential Problems with Simple Interest Rate Calculations
Compounding (Length: 0:21:30 ) Test
Self-Testing: Compounding
Rule of 70 (Length: 0:04:12 ) Test
Self-Testing: Rule of 70
Present Value and Rate Determination (Length: 0:08:40 ) Test
Self-Testing: Present Value and Rate Determination
Coping with Higher Compounding Frequencies (Length: 0:16:40 ) Test
Self-Testing: Coping with higher compounding frequencies
Higher Frequencies - Continuous Compounding (Length: 0:10:21 ) Test
Self-Testing: Higher Frequencies - Continuous Compounding
Higher Frequencies - Problem Statement (Length: 0:01:48 ) Test
Solution and Introduction to Discount Factors (Length: 0:30:41 ) Test
Self-Testing: Solution and Introduction to Discount Factors
Discounting Multiple Cash Flows (Length: 0:30:20 ) Test
Self-Testing: Discounting Multiple Cash Flows

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### Valuing Bonds and Stocks Prof. M. De Ceuster In this session we apply annuity formulas to the valuation of stocks and bonds. We introduce basic concepts of bond pricing.At the end of the study, you will be able to:Create time lines for streams of cash flows including bond and stock cash flows.Recognize annuities and derive their formulas (constant and growing annuities).Given four out of the following five inputs for an annuity, compute the fifth: (a) present value, (b) future value, (c) number of periods, (d) periodic interest rate, (e) periodic payment.Given three out of the following four inputs for a single sum, compute the fourth: (a) present value, (b) future value, (c) number of periods, (d) periodic interest rate.Given cash flows and present or future value, compute the internal rate of return for a series of cash flows.

Introduction to Annuities (Length: 0:20:28 ) Test
Self-Testing: Introduction to Annuities
Future Value of an Annuity (Length: 0:26:02 ) Test
Self-Testing: Future Value of an Annuity
Present Value of an Annuity (Length: 0:19:57 ) Test
Self-Testing: Present Value of an Annuity
Present Value of a Perpetuity (Length: 0:07:27 ) Test
Self-Testing: Present Value of a Perpetuity
Annuities Capita Selecta - IRR - Perpetuities - Annuities Due (Length: 0:13:41 ) Test
Self-Testing: Annuities Capita Selecta - IRR - Perpetuities - Annuities Due
Growing Annuities and Perpetuities (Length: 0:19:37 ) Test
Self-Testing: Growing Annuities and Perpetuities
Delayed Annuities (Length: 0:11:03 ) Test
Self-Testing: Delayed Annuities
An Amortization Table (Length: 0:14:08 ) Test

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### Return Calculations Prof. J. Annaert In this session we discuss return calculation methods and the different types of returns. At the end of the study, you will be able to:Calculate single and multiple period returnsUnderstand the difference between geometric and arithmetic averages.How indices are constructed and calculated.

Computing Returns - Introduction (Length: 0:06:17 ) Test
Self-Testing: Computing Returns - Introduction
Computing Returns Single Period Returns (Length: 0:19:04 ) Test
Self-Testing: Computing Returns Single Period Returns
Computing Returns - Portfolio Returns (Length: 0:08:48 ) Test
Self-Testing: Computing Returns - Portfolio Returns
Computing Returns - Multiperiod Returns - Geometric vs Arithmetic Average (Length: 0:14:54 ) Test
Self-Testing: Computing Returns - Multiperiod Returns - Geometric vs Arithmetic Average
Computing Returns - Time Weighted and Dollar Weighted Returns (Length: 0:15:00 ) Test
Self-Testing: Computing Returns - Time Weighted and Dollar Weighted Returns
Computing Returns - Index Construction (Length: 0:19:34 ) Test
Self-Testing: Computing Returns - Index Construction

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### Descriptive Statistics and Frequency Distributions Prof. J. Annaert Statistics, more specifically, econometrics, is extremely useful to finance. In this section, we discuss descriptive statistics and frequency distribution.At the end of the study, you will be able to:Understand why descriptive statistics, and frequency distributions are important.Get an overview of global return data.The concept of random variables, their moments, and descriptive statistics.Understand how returns can be modeled.Understand how returns can be described as a random variable.

Introduction and a First Look at Global Return Data (Length: 0:24:40 ) Test
Self-Testing: Introduction and a First Look at Global Return Data
Modelling Random Variables (Length: 0:18:19 ) Test
Self-Testing: Modelling Random Variables
Modelling Returns as Random Variables (Length: 0:18:17 ) Test
Self-Testing: Modelling Returns as Random Variables
Frequency Distributions (Length: 0:19:25 ) Test
Self-Testing: Frequency Distributions
Descriptive Statistics - Quantiles (Length: 0:12:36 ) Test
Self-Testing: Descriptive Statistics - Quantiles
Descriptive Statistics - Moments - The Mean (Length: 0:07:40 ) Test
Self-Testing: Descriptive Statistics - Moments - The Mean
Descriptive Statistics - Moments - Higher Moments (Length: 0:37:56 ) Test
Self-Testing: Descriptive Statistics - Moments - Higher Moments
Volatility (Length: 0:28:42 ) Test
Self-Testing: Volatility
Higher Central Moments (Length: 0:13:55 ) Test
Self-Testing: Higher Central Moments

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### Theoretical Return Distributions Prof. J. Annaert In this section, theoretical return distributions are discussed.At the end of the study, you will be able to:Understand why theoretical distributions may be useful when we know historical return distributions.Understand what discrete distributions such as Bernoulli, Binomial, and discrete uniform distribution areUnderstand what continuous distributions such as continuous uniform distribution and normal distribution are.More importantly, understand for returns, we use normal and log normal distributions.Understand covariance, correlation, and independence.

Theoretical Distributions - Bernouili Distribution (Length: 0:09:42 ) Test
Self-Testing: Theoretical Distributions - Bernouili Distribution
Theoretical Distributions - Binomial Distribution (Length: 0:31:59 ) Test
Self-Testing: Theoretical Distributions - Binomial Distribution
Theoretical Distributions - Continuous Distribution (Length: 0:26:58 ) Test
Self-Testing: Theoretical Distributions - Continuous Distribution
Theoretical Distributions - The Normal Distribution (Length: 0:28:11 ) Test
Self-Testing: Theoretical Distributions - The Normal Distribution
Theoretical Distributions - Solution Assignment (Length: 0:04:35 ) Test
Theoretical Distributions - The Lognormal Distribution (Length: 0:21:13 ) Test
Self-Testing: Theoretical Distributions - The Lognormal Distribution
Theoretical Distributions - Covariance Correlation and Independence (Length: 0:20:20 ) Test
Self-Testing: Theoretical Distributions - Covariance Correlation and Independence

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### Hypothesis Testing Prof. J. Annaert In this section, hypothesis testing is discussed, especially when making statement about the mean return is needed.At the end of the study, you will be able to:Understand how confidence intervals are constructed for stock returns.Why hypothesis tests are needed.How hypothesis tests are set up, the difference between one- and two-sided tests.Two types of errors associated with hypothesis tests.How we can use t-test to make statement about stock returns.

Inductive Statistics (Length: 0:29:12 ) Test
Self-Testing: Inductive Statistics
Confidence Intervals (Length: 0:24:09 ) Test
Self-Testing: Confidence Intervals
Hypothesis Tests Part 1 (Length: 0:19:11 ) Test
Self-Testing: Hypothesis Tests Part 1
Hypothesis Tests Part 2 (Length: 0:18:02 ) Test
Self-Testing: Hypothesis Tests Part 2

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### Portfolio Return and Risk Prof. J. Annaert In this section, we discuss one of the biggest questions in finance: how to determine asset prices? As discussed in the section Time Value of Money, asset price can be calculated by discounting the expected future value at the discount rate. However, it is very important to know the appropriate discount rate, which can only be determined if we take the time to maturity and risk into account. In this section, we discuss how we should adjust portfolio returns for risk.At the end of the study, you will be able to:Explain what utility is (and the famous St Petersburg Paradox) and how a utility function looks like.Understand the concept of risk aversion.What certainty equivalent means.Understand mean-variance optimal portfolioUnderstand the difference between asset allocation and security selection.Know what the Capital-Allocation Line is and how it is calculated.Understand the Sharpe ratio.

St Petersburg Paradox (Length: 0:28:23 ) Test
Certainty Equivalent (Length: 0:22:52 ) Test
Self-Testing: Certainty Equivalent
Mean Variance Portfolio (Length: 0:21:09 ) Test
Self-Testing: Mean Variance Portfolio
Optimal Portfolios (Length: 0:15:51 ) Test
Self-Testing: Optimal Portfolios
Capital Allocation (Length: 0:21:21 ) Test
Self-Testing: Capital Allocation
Capital Allocation Parameters (Length: 0:21:10 ) Test
Self-Testing: Capital Allocation Parameters
Portfolio Selection (Length: 0:18:38 ) Test
Self-Testing: Portfolio Selection

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### Univariate Regression Prof. M. De Ceuster We have discussed covariance and correlation in the section Theoretical Return Distributions. In this section, we further discuss a related concept: linear regression.At the end of study, you will be able to:Understand covariance and correlation and their limitationsUnderstand the simple linear regression modelAssess how good the regression isTest the significance of the coefficientsPerform regression in Excel

Univariate Regression (Covariance and Correlation) (Length: 0:30:22 ) Test
Self-Testing: Univariate Regression (Covariance and Correlation)
Univariate Regression (Causality, Introduction to Econometrics) (Length: 0:18:40 ) Test
Self-Testing: Univariate Regression (Causality, Introduction to Econometrics)
Univariate Regression (Linear Regression - Introduction) (Length: 0:36:13 ) Test
Self-Testing: Univariate Regression (Linear Regression - Introduction)
Univariate Regression (Linear Regression - Example) (Length: 0:32:37 ) Test
Self-Testing: Univariate Regression (Linear Regression - Example)
Univariate Regression (Linear Regression) (Length: 0:32:16 ) Test
Self-Testing: Univariate Regression (Linear Regression)
Simple Regression: The Probabilistic Part (Length: 0:18:47 ) Test
Self-Testing: Simple Regression: The Probabilistic Part
Multivariate Regression - An Empirical Walkthrough (Length: 0:14:11 ) Test
Regression Diagnostics (Length: 0:16:49 ) Test
Self-Testing: Regression Diagnostics

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### CAPM & Single Index Model Prof. J. Annaert In this section, we discuss the Capital Asset Pricing Model (CAPM), one of the most important model in finance. In this section, econometrics meet finance. You will see how econometrics can help us explore the amazing financial world.At the end of study, you will be able to:Understand separation theoremUnderstand factor modelsUnderstand the single index model and what beta and alpha mean.Know what portfolio diversification is.Understand the Capital Asset Pricing Model and see it in action.

Separation Theorem (Length: 0:08:17 ) Test
Self-Testing: Separation Theorem
Factor Models (Length: 0:19:49 ) Test
Single Index Model (Length: 0:21:38 ) Test
Single Index Model and Portfolio Diversification (Length: 0:23:42 ) Test
Self-Testing: Single Index Model and Portfolio Diversification
Single Index Model - Beta and Alpha (Length: 0:26:15 ) Test
Capital Asset Pricing Model (CAPM) (Length: 0:34:33 ) Test
CAPM in Action (Length: 0:31:53 ) Test
Self-Testing: CAPM in Action

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### Forward and Futures Prof. M. De Ceuster In this section, we discuss derivatives, especially forward and futures. At the end of study, you will be able to:Understand what derivatives areDescribe the contract specificationsDescribe the payoff diagramsRead Futures quotes

Derivatives - An Introduction (Length: 0:18:34 ) Test
Self-Testing: Derivatives - An Introduction
Introduction to Forward - Part 1 (Length: 0:30:11 ) Test
Self-Testing: Introduction to Forward - Part 1
Introduction to Forward - Part 2 (Length: 0:22:21 ) Test
Self-Testing: Introduction to Forward - Part 2
From Forward to Futures (Length: 0:29:10 ) Test

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### Introduction to Options Prof. M. De Ceuster In this section, we discuss options such as calls and puts. At the end of study, you will be able to:Understand how plain vanilla call and put options workDescribe the contract specificationsRead option quotesDescribe the payoff and profit potential of puts and callsConstruct the payoff and profit diagrams of portfolios containing options

Options - An Introduction (Length: 0:17:44 ) Test
Self-Testing: Options - An Introduction
Types of Options (Length: 0:24:23 ) Test
Self-Testing: Types of Options
Call Options (Length: 0:21:55 ) Test
Self-Testing: Call Options
Put Options (Length: 0:29:38 ) Test
Payoff Profiles (Length: 0:27:45 ) Test
Use of Options and Trading Strategies (Length: 0:24:19 ) Test
Self-Testing: Use of Options and Trading Strategies

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