Syllabus

Quantitative Methods in
Financial Analysis

1231-FIU01-FIN-6456-
SECRX1_MSFOL-14265

General Information
Professor Information

Instructor Chun-Hao Chang, Ph.D.

Office RB 210 (MMC)

E-Mail changch@fiu.edu

Phone (305) 348-2680

Office Hours Weekly Zoom Meetings or By Appointment

Website Professor Biography

Course Time Zone | Eastern Time (Miami/ET). Course due dates are
according to this time zone.
Course Awards

Quality Matters
This certification mark recognizes that this course
met Quality Matters review standards.

Course Description and Purpose

This is one of the foundation courses in the Master of Science in Finance
(MSF) program. The course will focus on the statistical and quantitative
methods and their applications in Finance. We will cover the organization
and visualization of data, and how to describe data using basic statistical
methods. We will also discuss probability concepts, commonly used
probability distributions in finance, statistical sampling, estimation, and
hypothesis testing. Finally, we will discuss how to explain and predict a
variable with another variable(s) using regression analysis and time-series
analysis; and most importantly, their application in finance. We will
extensively use Excel as our analysis tool and will have hands-on Excel
exercises in the Zoom sessions.

This course consists of nine modules, six quizzes, two exams, and one
group project. Module availability is open throughout the semester.
Communication will take place primarily via Canvas Inbox,
announcements, and Zoom meetings.
Course Objectives
Upon completing this course, students will be able to:

1. Relate tools and techniques for organizing, visualizing, and describing

data that permit us to convert raw data into useful information for
investment analysis.
2. Explain the essential concepts and tools of probability, and apply them
to probability, expected value, and variance to a range of investment
problems.
3. Specify the most frequently used probability distributions in investment
analysis.
4. Discuss the basic concepts and results in sampling and estimation,
and the concepts and methods of statistical inference and hypothesis
testing.
5. Analyze a simple linear regression and a multiple regression in
financial analysis, and distinguish violations of regression
assumptions, model specification and misspecification.
6. Summarize appropriate time-series model for a given investment
problem and justify that choice.
7. Construct spreadsheet representations of financial models to obtain
quantitative solutions to financial problems.

Note: You will be using the concepts learned in this course in most of the
other courses you will be taking in this program.

Major & Curriculum Objectives Targeted

This course is one of the two foundation courses in the MSF program. The
idea is to make you proficient enough in quantitative techniques so that you
will not have problems in other courses. It is imperative that you work on
the assignments and other homework problems individually and very
diligently.
Teaching Methodology
This is an online course, which means most (if not all) of the course work
will be conducted online. Expectations for performance in an online course
are the same as a traditional face-to-face course. In fact, online courses
require a degree of self-motivation, self-discipline, and technology skills
which can make these courses more demanding for some students.

We will use a variety of tools, sources of information and methodologies,

including the following:

readings from text and PowerPoint slides;

research and analysis from relevant websites;
collaborative Excel project;
supplemental videos; and
quizzes.

Assurance of Learning
The College of Business cares about the quality of your education. Read
more on the College's commitment to Assurance of Learning.

Course Prerequisites
Graduate student status. There are no other prerequisites for this course.
Review more information about prerequisites in the course catalog.
Proctored Exam Policy
There are no on-campus, proctored exams; all exams are administered
fully online via Honorlock.

For Honorlock, there is a cost associated with each exam that students will
be responsible for ($4.45 per exam, maybe waived for MSF Online
students). Honorlock is a proctoring solution that lets you take tests from
your course at your convenience (within the time frame allotted by your
professor). When a proctored exam session is finished, your professor
reviews the proctoring session to ensure test integrity. Review some
common FAQs concerning specifics when using the Honorlock proctored
exam tool. For more information and costs associated, visit our Honorlock
Student Page.

Please visit our Student Proctored Exam Instructions. webpage for

important information concerning proctored exams, proctoring centers, and
important forms.

IMPORTANT INFORMATION
Policies

Please review the FIU's Policies webpage. The policies webpage contains
essential information regarding guidelines relevant to all courses at FIU, as
well as additional information about acceptable netiquette for online
courses. For additional information, please visit FIU's Policy and Procedure
Library.

Netiquette throughout the course:

Be friendly, positive and self-reflective

Use proper language and titles
Use effective communication
Be professional
Ask for clarification

As a member of the FIU community you are expected to be knowledgeable

about the behavioral expectations set forth in the FIU Student Conduct and
Honor Code.

Academic Calendar
Drop dates and other important dates can be found in the FIU Academic
calendar page.
Technical Requirements and Skills

One of the greatest barriers to taking an online course is a lack of basic

computer literacy. By computer literacy we mean being able to manage and
organize computer files efficiently, and learning to use your computer's
operating system and software quickly and easily. Keep in mind that this is
not a computer literacy course; but students enrolled in online courses are
expected to have moderate proficiency using a computer. Please go to
the What's Required webpage to find out more information on this subject.

Privacy Policy Statements for Partners and Vendors

Canvas
Microsoft
Adobe
Google
YouTube
HonorLock (PDF)
Zoom
Respondus LockDown Browser
Wall Street Journal
LinkedIn

Please visit our Technical Requirements webpage for additional

information.
Accessibility and Accommodation
The Disability Resource Center collaborates with students, faculty, staff,
and community members to create diverse learning environments that are
usable, equitable, inclusive and sustainable. The DRC provides FIU
students with disabilities the necessary support to successfully complete
their education and participate in activities available to all students. If you
have a diagnosed disability and plan to utilize academic accommodations,
please contact the Center at 305-348-3532 or visit them at the Graham
Center GC 190.

For additional assistance please contact FIU's Disability Resource Center.

Web Accessibility Statements for Partners and Vendors

Canvas
Microsoft
Adobe
Google
YouTube
HonorLock
Zoom
Respondus LockDown Browser
Wall Street Journal (not accessible)
LinkedIn

Please visit our ADA Compliance webpage for additional information about
accessibility involving the tools used in this course.
Academic Misconduct Statement

Florida International University is a community dedicated to generating and

imparting knowledge through excellent teaching and research, the rigorous
and respectful exchange of ideas and community service. All students
should respect the right of others to have an equitable opportunity to learn
and honestly demonstrate the quality of their learning. Therefore, all
students are expected to adhere to a standard of academic conduct, which
demonstrates respect for themselves, their fellow students, and the
educational mission of the University. All students are deemed by the
University to understand that if they are found responsible for academic
misconduct, they will be subject to the Academic Misconduct procedures
and sanctions, as outlined in the Student Conduct and Honor
Code. Academic Misconduct includes:

Cheating

The unauthorized use of any materials, information, study aids or

assistance from another person on any academic assignment or
exercise, unless explicitly authorized by the course Instructor;
Assisting another Student in the unauthorized use of any materials,
information, study aids, unless explicitly authorized by the Instructor;
and
Having a substitute complete any academic assignment or completing
an academic assignment for someone else, either paid or unpaid; and

Plagiarism

The deliberate use and appropriation of another's work without any

indication of the source and the representation of such work as the
Student's own.
Assisting another Student in the deliberate use and appropriation of
another’s work without any indication of the source and the
representation of such work as the student’s own.

Learn more about the academic integrity policies and procedures as well
as student resources that can help you prepare for a successful semester.

Statement of Understanding between Professor and

Student
Every student must respect the right of all to have an equitable opportunity
to learn and honestly demonstrate the quality of their learning. Therefore,
all students must adhere to a standard of academic conduct, demonstrating
respect for themselves, their fellow students, and the educational mission
of the University. As a student in FIU taking this class:

I will not represent someone else's work as my own

I will not cheat, nor will I aid in another's cheating
I will be honest in my academic endeavors
I understand that if I am found responsible for academic misconduct, I
will be subject to the academic misconduct procedures and sanctions
as outlined in the Student Handbook

Failure to adhere to the guidelines stated above may result in one of the
following:

Expulsion: Permanent separation of the student from the University,

preventing readmission to the institution. This sanction shall be
recorded on the student's transcript.
Suspension: Temporary separation of the student from the
University for a specific period of time.

By taking this course I promise to adhere to FIU's Student Code of

Academic Integrity. Please visit the academic honesty policy and procedure
page for more information.
Expectations of this Course

This is an online course, which means most (if not all) of the course work
will be conducted online. Expectations for performance in an online course
are the same for a traditional course. In fact, online courses require a
degree of self-motivation, self-discipline, and technology skills which can
make these courses more demanding for some students.

Students are expected to:

Review the how to get started information located in the course

content
Introduce yourself to the class during the first week by posting a self-
introduction in the appropriate discussion forum and an appropriate
photo
Take the practice quiz to ensure that your computer is compatible with
Canvas
Interact online with instructor/s and peers
Review and follow the course calendar
Log in to the course 4 times per week
Respond to discussion board postings within 2 business days
Respond to emails/messages within 2 business days
Submit assignments by the corresponding deadline
Check official FIU email and Canvas Messages daily

The instructor will:

Log in to the course 4 times per week

Respond to discussion boards, blogs, and journal postings within 2-3
business days (excluding holidays and weekends)
Respond to emails/messages within 2 - 3 business days (excluding
holidays and weekends)
Grade assignments within 7 business days (excluding holidays and
weekends) of the assignment deadline

Assignments from the text and other resources are listed for each class
session. Students are expected to pace their learning according to the
posted course assignments.

It is expected that interactive learning and teaching will enrich the learning
experience of all students, and that each student will work in partnership
with the professor to create a positive learning experience for all. Student
engagement is a necessary condition for an effective learning experience
and includes contributions to debate and discussion (if any), positive
interactive learning with others, and an enthusiastic attitude towards
inquiry. Everyone is expected to be a positive contributor to the class
learning community, and students are expected to share the responsibility
of teaching each other.

Panthers Care & Counseling and Psychological

Services (CAPS)
If you are looking for help for yourself or a fellow classmate, Panthers Care
encourages you to express any concerns you may come across as it
relates to any personal behavior concerns or worries you have, for the
classmate’s well-being or yours; you are encouraged to share your
concerns with FIU’s Panthers Care website.

Counseling and Psychological Services (CAPS) offers free and confidential

help for anxiety, depression, stress, and other concerns that life brings.
Professional counselors are available for same-day appointments. Don’t
wait to call 305-348-2277 to set up a time to talk or visit the online self-help
portal.

Inclusivity Statement

This course will serve to embrace the diversity and inclusivity found within
Florida International University. We appreciate and respect diversity,
equality, equity, cooperativeness, community, and sustainability within our
online courses. We are committed to the ongoing education of our students
and their participation within the course regardless of gender, ethnicity, age,
sexual orientation, geographical location, religion, and disability. We strive
in encouraging collaboration by preparing our students to value the
differences in others. At the core of our intentions is the encouragement of
acceptance and appreciation of differences within our student population
and community.
Religious Holidays
The University's policy on religious holy days as stated in the University
Catalog and Student Handbook will be followed in this class. Any student
may request to be excused from class to observe a religious holy day of his
or her faith.

COURSE DETAIL

Course Communication
Communication in this course will take place via the Canvas Inbox. Check
out the Canvas Conversations Tutorial or Canvas Guide to learn how to
communicate with your instructor and peers using Announcements,
Discussions, and the Inbox. I will respond to all correspondences within 48
business hours (excluding holidays and weekends).
Textbook

Quantitative Investment Analysis, 4th

Title : Edition
(Required)
Authors : CFA Institute
Publisher : John Wiley & Sons, Sep-2020
Publish Date : Sep-2020
ISBN 13 : 9781119743644

P u r c h a se / Re n t a t F IU B o o ksto r e
 Quantitative Investment Analysis
Title :
Workbook,4th Edition (Required)
Authors : CFA Institute
Publisher : John Wiley & Sons, Sep-2020
Publish Date : Sep-2020
ISBN 13 : 9781119743668

P u r c h a se / Re n t a t F IU B o o ksto r e
Course Materials

Lecture videos and slides are created by the instructor,

Chun-Hao Chang, Ph.D., on behalf of Florida
International University in 2021. Material is derived from
the required textbook, Quantitative Investment Analysis
(ISBN 10: 9781119743620).

Documents used for Zoom meetings are created by the

instructor, Chun-Hao Chang, Ph.D., on behalf of Florida
International University in 2021.

The Wall Street Journal e-Subscription

(Recommended)
The Wall Street Journal has partnered with FIU to offer ALL FIU
students free e-subscriptions to the Wall Street Journal. It's 100% free. Get
your free e-subscription to the Wall Street Journal. You will need to sign in
with your FIU student credentials to be able to access this offer, but you
can not get the print edition with this offer.
Discussion Forums
Keep in mind that your discussion forum postings will likely be seen by
other members of the course. Care should be taken when determining
what to post.

Think before you write.

Think of the discussion board as an in-between of a chat and a formal
essay. In a formal essay, we slowly develop larger ideas at length. The
discussion board falls in between.
It is also a good idea to read what others in your class have said
before you. It is important to be aware of what has already been said.
Try to add a new dimension, a different slant, or another perspective.
Just as when you are in a regular classroom, there is also a proper
etiquette to the discussion board. This etiquette includes listening to
(reading) everybody, providing thoughtful responses, maintaining
decorum, criticizing politely, addressing replies to people by name,
signing your posts, etc.
Assessments

In order to mitigate any issues with your computer and online assessments,
it is very important that you take the "Practice Quiz" from each computer
you will be using to take your graded quizzes and exams. It is your
responsibility to make sure your computer meets the minimum hardware
requirements.

All assessments will auto-submit when (1) the timer runs out OR (2) the
closing date/time is reached, whichever happens first. For example, if a
quiz has a closing time of 5:00 pm but the student begins the exam at 4:55
pm, the student will only have 5 minutes to complete the quiz.

Assessments in this course are not compatible with mobile devices and
should not be taken through a mobile phone or a tablet. If you need further
assistance please contact FIU Canvas Help Team.

Practice Quiz

A multiple-choice quiz that is designed to ensure your computer is setup

and working properly for actual quizzes. (This does not count toward your
overall quiz grade).

Quizzes

There will be 6 multiple-choice quizzes at 50 points each. You will have 60

minutes to complete each quiz and 1 attempts. Your score will be available
immediately upon submission but correct answers will not be available until
3 days after the due date. The lowest quiz score will be dropped. There is
no make-up quiz. Quizzes are to be taken individually. Quizzes will be
administered using Respondus Lockdown Browser.

Exams

There will be 2 multiple-choice exams during this semester. You will have
180 minutes to complete each exam and 1 attempt. The exams are non-
cumulative. Your score will be available immediately upon submission but
correct answers will not be available until 3 days after the due date. No
makeup examination will be given unless there is a catastrophic reason.
For Honorlock, there is a cost associated with each exam that students will
be responsible for ($4.45 per exam, the cost maybe waived for MSF Online
students). Honorlock is a proctoring solution that lets you take tests from
your course at your convenience (within the time frame allotted by your
professor). When a proctored exam session is finished, your professor
reviews the proctoring session to ensure test integrity. Review some
common FAQs concerning specifics when using the Honorlock proctored
exam tool. For more information and costs associated, visit our Honorlock
Student Page.

Please visit our Student Proctored Exam Instructions. webpage for

important information concerning proctored exams, proctoring centers, and
important forms.
Assignments

Homework

The homework sets are ungraded assignments, they will not be collected
and graded. They are designed to help students to better understand class
materials, concepts, theories and analysis. Homework sets are definitely
helpful for preparing your quizzes and final exam. The detailed solutions for
homework sets are provided in the Quantitative Investment Analysis
Workbook . I would strongly suggest that students work on homework
without checking the solution first and then check the solutions when you
finish. Students are encouraged to form study group to work together and
help each other.

Group Project

You will find the details of the group project in Module 0. Student groups
will be assigned randomly in Canvas. The deliverable is the raw data
collected from Yahoo Finance. This submission will not be graded.
However, points will be deducted if you miss the submission. Refer to the
Course Calendar of the syllabus and Canvas for availability dates.

Project Communication Expectations

All group members should do an equal amount of work

Have respect for each other
Be willing to cooperate with others on their ideas
Make sure everyone is able to be vocal about their ideas and problems

iPeer Confidential Peer Evaluations

We will be using iPeer to anonymously evaluate your group members for

the Group Project. You will fill out a form for each of your group members
and submit. You will choose a rating and input comments (required) for
each criterion for each member. Those scores will populate in Canvas and
automatically be calculated into your grade. You will not see the scores
your team members assign to you and they will not see yours. It is
completely anonymous. You will only see the average of the submitted
scores.
Your iPeer grade is worth 30% of your overall group project grade.
Students who do not participate in the iPeer Confidential Peer Evaluations
will receive a score of zero on their iPeer grade. In addition, there will be a
late submission penalty for late iPeer submissions. iPeer evaluation will not
be made available until the day after the group assignment is due.

Refer to the Course Calendar of the syllabus and Canvas for availability
dates.

Zoom Video Conference

Zoom is a video conference tool that you can use to interact with your
professor and fellow students by sharing screens, chatting, broadcasting
live video/audio, and taking part in other interactive online activities.

Zoom Meetings will be held weekly on the Wednesdays, 8:00 pm - 9:00

pm. The meetings may cover statistical/financial models in Excel, and
also may serve as group office hours/exam reviews.

Zoom Test Meeting Room

Use this link to access the Zoom Test Meeting Room. This meeting room is
available to test out the software before joining an actual session.

Reference the provided links to access Zoom student tutorials to learn

about the tool, how to access your meeting room, and share your screen.

Download Zoom.
Login to Zoom through Desktop Application
Enable and Test Audio & Webcam.
Schedule a meeting or Join a Zoom meeting.
Invite others to join meeting.
Chat (Professors) - Students look at attendees section for instructions.
Share My Screen.
Record a Local Zoom meeting.
Host Control in Meetings.
Getting Started with iOS.
Getting Started with Android.
Grading

Late Assignment Submission Policy

Late assignments will not accepted.

Number Points Total

Course
of for Points Weight
Requirements
Items Each Available

Quizzes (drop
6 50 300 30%
lowest 1)

Exam 1 1 200 200 20%

Group Project 1 210 210 21%

iPeer Confidential
1 90 90 9%
Peer Evaluation

Exam 2 1 200 200 20%

Total 9 N/A 1000 100%

Grading Schema

Range Range Range

Letter Letter Letter
(%) (%) (%)

95 -
A B 83 - 86% C 70 - 76%
100%

A- 90 - 94% B- 80 - 82% D 60 - 69%

B+ 87 - 89% C+ 77 - 79% F 0 -59%

COURSE CALENDAR
Weekly Schedule

This syllabus is subject to change; you are responsible for regularly

monitoring Canvas Announcements, Conversations/Inbox and your FIU
student email to be aware of any noted changes.

Date Module Topics Tasks

Module 2 - Part 1: Companies

and Groups Assigned
Module 3 - Part 2: Data Set
Jan 9 Module 5 - Part 3: Frequency
- Feb Distribution and Statistics
Group Project Module 7 - Part 4: Regression
26
and Part 5: Submit iPeer
Confidential Peer Evaluation
Date Module Topics Tasks

Due Wednesday, before Zoom

session:

Chapter 2: Watch course “Welcome”

video
Data Types Review Module 0: Getting
Data Started
Summarization Review Course and Syllabus
Data Introduce Yourself post
Visualization Practice Quiz
Week Academic Honesty Policy Quiz
Measures of
1 Read Chapter 2
Central
Jan 9 Review Chapter Resources
Tendency
- Jan
Measures of
15 Wednesday, 8:00 pm - 9:00 pm:
Dispersion
Skewness and
Attend Zoom meeting (or
Kurtosis
watch recording)
Covariance &
Correlation Due Sunday, 11:59 pm:
Coefficient
Homework End-of-Chapter
Practice, Ch 2
Quiz 1
Date Module Topics Tasks

Chapters 3:

Probability Due Wednesday, before Zoom

Concepts session:
Expected
Values and Read Chapter 3
Variance Review Chapter Resources
Expected
Week
Value and Wednesday, 8:00 pm - 9:00 pm:
2
Variance
Jan
Portfolio Attend Zoom meeting (or
16 -
Expected watch recording)
Jan
Return and
22 Due Sunday, 11:59 pm:
Variance
Topics in
Probability Homework End-of-Chapter
Bayes’ Practice, Ch 3
Formula Quiz 2
Counting
Methods
Date Module Topics Tasks

Chapter 4 Due Wednesday, before Zoom

session:
Discrete
Random Read Chapter 4
Variables Review Chapter Resources
Discrete
Week Uniform Wednesday, 8:00 pm - 9:00 pm:
3 Distribution
Jan Binomial Attend Zoom meeting (or
23 - Distribution watch recording)
Jan Continuous
29 Random Due Sunday, 11:59 pm:
Variables
Normal Homework End-of-Chapter
Distribution Practice, Ch 4
Lognormal Quiz 3
Distribution Group Project Part 2 Data File
Date Module Topics Tasks

Due Wednesday, before Zoom

session:
Chapters 5
Read Chapter 5
Sampling Review Chapter Resources
Distribution of
Sample Mean Wednesday, 8:00 pm - 9:00 pm:
Week
Point
4 Attend Zoom meeting (or
Estimates of
Jan watch recording)
Population
30 -
Mean Due Sunday, 11:59 pm:
Feb
Confidence
5
Intervals for Review Chapter 2 - 5
Population Review Chapter Resources
Mean Homework End-of-Chapter
Practice, Ch 5
Exam 1 Exam 1 (available Feb 3 at 12
am - Feb 5 11:59 pm)
Date Module Topics Tasks

Due Wednesday, before Zoom

session:
Chapter 6: Read Chapter 6
Review Chapter Resources
Hypothesis
Week Testing Wednesday, 8:00 pm - 9:00 pm:
5 Hypothesis
Feb Testing for the Attend Zoom meeting (or
6- Mean watch recording)
Feb Hypothesis
12 Testing for Due Sunday, 11:59 pm:
Variance
Homework End-of-Chapter
Practice, Ch 6
Quiz 4
Group Project Part 3
Date Module Topics Tasks

Chapters 7:

Linear
Regression Due Wednesday, before Zoom
Assumptions session:
Standard Error
of Regression Read Chapter 7 & 8
Hypothesis Review Chapter Resources
Week Testing
Wednesday, 8:00 pm - 9:00 pm:
6 ANOVA
Feb Prediction Attend Zoom meeting (or
13 - Intervals watch recording)
Feb
Chapter 8: Due Sunday, 11:59 pm:
19
Correlation Homework End-of-Chapter
Analysis Practice, Ch 7 & Ch 8 (1-8, 12-
Linear 15 only)
Regression Quiz 5
Assumptions
Standard Error
of Regression
Date Module Topics Tasks

Chapter 9

Time Series Due Wednesday, before Zoom

Analysis session:
Trend Analysis
Autoregressive Read Chapter 9
Time-Series Review Chapter Resources
Models
Random Wednesday, 8:00 pm - 9:00 pm:
Week
Walks and Unit
7
Root Attend Zoom meeting (or
Feb
Moving- watch recording)
20 -
Average Time
Feb Due Sunday, 11:59 pm:
Series Models
26
Seasonality in
Time-Series SPOTS Course Evaluation
Models Homework End-of-Chapter
Autoregressive Practice, Ch 9
Moving- Quiz 6
Average Group Project Part 4
Models
ARCH Models
Date Module Topics Tasks

Due Tuesday, before Zoom

session:

Review Chapter 6 - 9
Review Chapter Resources

Tuesday, 8:00 pm - 9:00 pm:

Week
8 Attend Zoom meeting (or
Feb watch recording)
Exam 2
27 -
Due Tuesday at 11:59 pm:
Mar
3 iPeer Confidential Peer
Evaluation

Due Friday, 11:59 pm:

Exam 2 (available March 1 at

12 am - March 3 at 11:59 pm)