MS&E242S Investment Science course in Stanford

Thursday, July 22, 2010

You got it right from the above title, I am currently taking the MS&E 242S Investment Science course in Stanford taught by Prof. Charles Feinstien. Although I can tweet about this daily, but I guess a blog about this subject is more appropriate and that's what I am going to do in the coming days, I know the questions you may ask if you are a follower of this blog.

1. Why you didn't blog for sometime?
2. What's in it for me about investment science?
3. What will I learn in the near future about investments?
4. Why are you doing this?
5. Any investment book you recommend?

1. Why you didn't blog for sometime?

Because I believe in writing quality contents compared to quantity and at times when you are busy, its hard to maintain that quality unless you devote sufficient time ane energy for it, again I don't want to give a list of excuses on not blogging for long, but will give enough reasons for why I will be blogging more regularly in future.

2. What's in it for me about investment science?

This is exactly the question which puzzled me before taking the course and the reason why I took this course is just to explore that, to learn the mathematical models and tools used to arrive at major investment decisions.

3. What will I learn in the near future about investments?

Well my plan is not to lecture about investment science, but will educate you about the basics of investment science and financial engineering which everyone should be aware of, like

1. Present Value of an investment
2. Internal rate of return
3. Mortgages, interest, how monthly payments are calculated for your loan if you are paying mortgages
4. Investing in bonds
5. Some reusable excel calculations in investment
6. Exploring the features of a financial calculator to calculate interest, IRR, present values and so on.

Spot rates, forward rates, optimal allocation of your investments, options theory and some practical problems with solutions.

Its highly likely that I will be developing some scripts to illustrate these computations.

4. Why are you doing this?

Its a win-win situation here, I need a definitive reference for these concepts from which you will get benefitted, I took the struggle, Googled, hit the walls to arrive solutions for fundamental problems, a reference for these will make your life easier if you need some introduction fo finance/investment science.

5. Any investment book you recommend?

Old is gold, if you are keen on invesment science, then the reading Investment Science by David G. Luenberger is a must in your bookshelf may you buy bonds, invest in stocks, trade, want to learn about finance or just decided to have some fun with math.

Note: I will be selective in my future blog posts about investment science, some of these concepts may be simple, but yet they are powerful and my goal is to pick a fixed set of concepts which one MUST know about finance and investments.

Ok, lets start the journey today, keep watching.

No comments:


Copyright © 2016 Prasanna Seshadri, www.prasannatech.net, All Rights Reserved.
No part of the content or this site may be reproduced without prior written permission of the author.