The main topics covered in this module are:
- probability and statistics
- scenario analysis
- decision trees
- simulations
- value-at-risk*
- real options*
"Strategic Risk Taking: A Framework for Risk Management", Damodaran, A., 2007, 1st edition, Wharton School Publishing
"Finite Mathematics and Applied Calculus", Waner, S. and Costenoble, S., 2017, 7th edition, Cengage
Obiettivi Formativi
After the completion of this module, students are expected to have developed the proper quantitative tools for answering the following questions:
1. What is risk?
2. Why do we care about risk?
3. What do we think about risk?
4. How do we measure risk?
Prerequisiti
Basic calculus and linear algebra (B031707 - Analytic Tools for Social Change)
Metodi Didattici
Lectures. The student will also learn some basic Matlab programming.
Modalità di verifica apprendimento
4 Intermediate tests (40%) + final written exam (60%)
Programma del corso
Week 1: Introduction
Week 2: Sets and Counting
Week 3: Probability
Week 4: Probability
Week 5: Probability
Week 6: Probability
Week 7: Random Variables and Statistics
Week 8: Random Variables and Statistics
Week 9: Scenario Analysis, Decision Trees and Simulations
Week 10: Scenario Analysis, Decision Trees and Simulations
Week 11: Value-at-risk*
Week 12: Real Options*