The purpose of this topic is to introduce the main econometric concepts and models used in the field of finance and business. This topic will review simple regression models, multiple regression models. It also provides a set of empirical tools for analyzing historical financial data, modeling underlying economic mechanisms and predicting future price trends, and portfolio models.
The course covers both cross-sectional and time series data. Furthermore, time series models are introduced to model and forecast both the returns and aggregate volatility of stocks that change over time. Through completing assignments and reading academic papers in this course, students will be able to run statistical tests and understand and interpret econometric results.