Pre-Master Course for Finance € 500.00 | Subscribe | Redeem Code

This is the pre-master course for Master in Finance programs. This course deals with basic econometrics, finance, and investment to prepare students for the Master in Finance program at Antwerp Management School. It contains 77 video sessions with more than 100 numerical exercise sessions. Students need to answer the questions in a session before they can move on to the next topic.

These topics are grouped into 11 sections.

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image   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 Currently at 0:00:00) Test
Self-Testing: Business Day and Day Count Conventions
Simple Interest Rate Calculations (Length: 0:17:16 Currently at 0:00:00) Test
Self-Testing: Simple Interest Rate Calculations
Potential Problems with Simple Interest Rate Calculations (Length: 0:11:06 Currently at 0:00:00) Test    
Self-Testing: Potential Problems with Simple Interest Rate Calculations
Compounding (Length: 0:21:30 Currently at 0:00:00) Test    
Self-Testing: Compounding
Rule of 70 (Length: 0:04:12 Currently at 0:00:00) Test    
Self-Testing: Rule of 70
Present Value and Rate Determination (Length: 0:08:40 Currently at 0:00:00) Test    
Self-Testing: Present Value and Rate Determination
Coping with Higher Compounding Frequencies (Length: 0:16:40 Currently at 0:00:00) Test    
Self-Testing: Coping with higher compounding frequencies
Higher Frequencies - Continuous Compounding (Length: 0:10:21 Currently at 0:00:00) Test    
Self-Testing: Higher Frequencies - Continuous Compounding
Higher Frequencies - Problem Statement (Length: 0:01:48 Currently at 0:00:00) Test    
Solution and Introduction to Discount Factors (Length: 0:30:41 Currently at 0:00:00) Test  
Self-Testing: Solution and Introduction to Discount Factors
Discounting Multiple Cash Flows (Length: 0:30:20 Currently at 0:00:00) Test    
Self-Testing: Discounting Multiple Cash Flows

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image   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 Currently at 0:00:00) Test    
Self-Testing: Introduction to Annuities
Future Value of an Annuity (Length: 0:26:02 Currently at 0:00:00) Test    
Self-Testing: Future Value of an Annuity
Present Value of an Annuity (Length: 0:19:57 Currently at 0:00:00) Test    
Self-Testing: Present Value of an Annuity
Present Value of a Perpetuity (Length: 0:07:27 Currently at 0:00:00) Test    
Self-Testing: Present Value of a Perpetuity
Annuities Capita Selecta - IRR - Perpetuities - Annuities Due (Length: 0:13:41 Currently at 0:00:00) Test    
Self-Testing: Annuities Capita Selecta - IRR - Perpetuities - Annuities Due
Growing Annuities and Perpetuities (Length: 0:19:37 Currently at 0:00:00) Test    
Self-Testing: Growing Annuities and Perpetuities
Delayed Annuities (Length: 0:11:03 Currently at 0:00:00) Test    
Self-Testing: Delayed Annuities
An Amortization Table (Length: 0:14:08 Currently at 0:00:00) Test    

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image   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 Currently at 0:00:00) Test    
Self-Testing: Introduction and a First Look at Global Return Data
Modelling Random Variables (Length: 0:18:19 Currently at 0:00:00) Test    
Self-Testing: Modelling Random Variables
Modelling Returns as Random Variables (Length: 0:18:17 Currently at 0:00:00) Test    
Self-Testing: Modelling Returns as Random Variables
Frequency Distributions (Length: 0:19:25 Currently at 0:00:00) Test    
Self-Testing: Frequency Distributions
Descriptive Statistics - Quantiles (Length: 0:12:36 Currently at 0:00:00) Test    
Self-Testing: Descriptive Statistics - Quantiles
Descriptive Statistics - Moments - The Mean (Length: 0:07:40 Currently at 0:00:00) Test    
Self-Testing: Descriptive Statistics - Moments - The Mean
Descriptive Statistics - Moments - Higher Moments (Length: 0:37:56 Currently at 0:00:00) Test    
Self-Testing: Descriptive Statistics - Moments - Higher Moments
Volatility (Length: 0:28:42 Currently at 0:00:00) Test    
Self-Testing: Volatility
Higher Central Moments (Length: 0:13:55 Currently at 0:00:00) Test    
Self-Testing: Higher Central Moments

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image   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 are
  • Understand 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 Currently at 0:00:00) Test    
Self-Testing: Theoretical Distributions - Bernouili Distribution
Theoretical Distributions - Binomial Distribution (Length: 0:31:59 Currently at 0:00:00) Test    
Self-Testing: Theoretical Distributions - Binomial Distribution
Theoretical Distributions - Continuous Distribution (Length: 0:26:58 Currently at 0:00:00) Test    
Self-Testing: Theoretical Distributions - Continuous Distribution
Theoretical Distributions - The Normal Distribution (Length: 0:28:11 Currently at 0:00:00) Test    
Self-Testing: Theoretical Distributions - The Normal Distribution
Theoretical Distributions - Solution Assignment (Length: 0:04:35 Currently at 0:00:00) Test    
Theoretical Distributions - The Lognormal Distribution (Length: 0:21:13 Currently at 0:00:00) Test  
Self-Testing: Theoretical Distributions - The Lognormal Distribution
Theoretical Distributions - Covariance Correlation and Independence (Length: 0:20:20 Currently at 0:00:00) Test    
Self-Testing: Theoretical Distributions - Covariance Correlation and Independence

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image   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 Currently at 0:00:00) Test    
Self-Testing: Inductive Statistics
Confidence Intervals (Length: 0:24:09 Currently at 0:00:00) Test    
Self-Testing: Confidence Intervals
Hypothesis Tests Part 1 (Length: 0:19:11 Currently at 0:00:00) Test    
Self-Testing: Hypothesis Tests Part 1
Hypothesis Tests Part 2 (Length: 0:18:02 Currently at 0:00:00) Test    
Self-Testing: Hypothesis Tests Part 2

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image   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 portfolio
  • Understand 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 Currently at 0:00:00) Test    
Certainty Equivalent (Length: 0:22:52 Currently at 0:00:00) Test  
Self-Testing: Certainty Equivalent
Mean Variance Portfolio (Length: 0:21:09 Currently at 0:00:00) Test    
Self-Testing: Mean Variance Portfolio
Optimal Portfolios (Length: 0:15:51 Currently at 0:00:00) Test    
Self-Testing: Optimal Portfolios
Capital Allocation (Length: 0:21:21 Currently at 0:00:00) Test    
Self-Testing: Capital Allocation
Capital Allocation Parameters (Length: 0:21:10 Currently at 0:00:00) Test    
Self-Testing: Capital Allocation Parameters
Portfolio Selection (Length: 0:18:38 Currently at 0:00:00) Test    
Self-Testing: Portfolio Selection

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image   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 limitations
  • Understand the simple linear regression model
  • Assess how good the regression is
  • Test the significance of the coefficients
  • Perform regression in Excel

Univariate Regression (Covariance and Correlation) (Length: 0:30:22 Currently at 0:00:00) Test    
Self-Testing: Univariate Regression (Covariance and Correlation)
Univariate Regression (Causality, Introduction to Econometrics) (Length: 0:18:40 Currently at 0:00:00) Test    
Self-Testing: Univariate Regression (Causality, Introduction to Econometrics)
Univariate Regression (Linear Regression - Introduction) (Length: 0:36:13 Currently at 0:00:00) Test    
Self-Testing: Univariate Regression (Linear Regression - Introduction)
Univariate Regression (Linear Regression - Example) (Length: 0:32:37 Currently at 0:00:00) Test    
Self-Testing: Univariate Regression (Linear Regression - Example)
Univariate Regression (Linear Regression) (Length: 0:32:16 Currently at 0:00:00) Test    
Self-Testing: Univariate Regression (Linear Regression)
Simple Regression: The Probabilistic Part (Length: 0:18:47 Currently at 0:00:00) Test    
Self-Testing: Simple Regression: The Probabilistic Part
Multivariate Regression - An Empirical Walkthrough (Length: 0:14:11 Currently at 0:00:00) Test    
Regression Diagnostics (Length: 0:16:49 Currently at 0:00:00) Test  
Self-Testing: Regression Diagnostics

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image   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 theorem
  • Understand factor models
  • Understand 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 Currently at 0:00:00) Test    
Self-Testing: Separation Theorem
Factor Models (Length: 0:19:49 Currently at 0:00:00) Test    
Single Index Model (Length: 0:21:38 Currently at 0:00:00) Test  
Single Index Model and Portfolio Diversification (Length: 0:23:42 Currently at 0:00:00) Test  
Self-Testing: Single Index Model and Portfolio Diversification
Single Index Model - Beta and Alpha (Length: 0:26:15 Currently at 0:00:00) Test    
Capital Asset Pricing Model (CAPM) (Length: 0:34:33 Currently at 0:00:00) Test  
CAPM in Action (Length: 0:31:53 Currently at 0:00:00) Test  
Self-Testing: CAPM in Action

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image   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 are
  • Describe the contract specifications
  • Describe the payoff diagrams
  • Read Futures quotes

Derivatives - An Introduction (Length: 0:18:34 Currently at 0:00:00) Test    
Self-Testing: Derivatives - An Introduction
Introduction to Forward - Part 1 (Length: 0:30:11 Currently at 0:00:00) Test    
Self-Testing: Introduction to Forward - Part 1
Introduction to Forward - Part 2 (Length: 0:22:21 Currently at 0:00:00) Test    
Self-Testing: Introduction to Forward - Part 2
From Forward to Futures (Length: 0:29:10 Currently at 0:00:00) Test    

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image   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 work
  • Describe the contract specifications
  • Read option quotes
  • Describe the payoff and profit potential of puts and calls
  • Construct the payoff and profit diagrams of portfolios containing options

Options - An Introduction (Length: 0:17:44 Currently at 0:00:00) Test  
Self-Testing: Options - An Introduction
Types of Options (Length: 0:24:23 Currently at 0:00:00) Test    
Self-Testing: Types of Options
Call Options (Length: 0:21:55 Currently at 0:00:00) Test    
Self-Testing: Call Options
Put Options (Length: 0:29:38 Currently at 0:00:00) Test    
Payoff Profiles (Length: 0:27:45 Currently at 0:00:00) Test  
Use of Options and Trading Strategies (Length: 0:24:19 Currently at 0:00:00) Test  
Self-Testing: Use of Options and Trading Strategies

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Additional Exercises

This section contains several numerical exercises to help you understand the topics better.

Self-Testing: Additional Exercise 01
Self-Testing: Additional Exercise 02
Self-Testing: Additional Exercise 03
Self-Testing: Additional Exercise 04
Self-Testing: Additional Exercise 05
Self-Testing: Additional Exercise 06
Self-Testing: Additional Exercise 07
Self-Testing: Additional Exercise 08
Self-Testing: Additional Exercise 09
Self-Testing: Additional Exercise 10
Self-Testing: Additional Exercise 11
Self-Testing: Additional Exercise 12

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