Python For Finance - 22-24

PRESTIGE INSTITUTE OF MANAGEMENT AND RESEARCH, INDORE
An Autonomous Institute Established in 1994, Thrice Accredited by NAAC with Highest Grade, now A++
ISO 9001:2005 Certified Institute, AICTE/ UGC Approved Programs affiliated to DAVV, Indore
Program MBA-Financial Administration

Semester IV Course Credits 3
Subject Title Python for Finance
Subject Code ECF301
Department Data Analysis &Information System
HOD Dr. Alok Bansal
Faculty Name Dr. Sumit Zokarkar, Prof. Dr. Nitin Tanted
Designation Assistant Professor
E-mail Sumit_zokarkar@pimrindore.ac.in
Contact Number 8827888876
The prerequisites for this course are understanding some basics

of the python and acquaintance with traditional financial
Pre-requisites
analysis. It is also assumed that students are reasonably familiar
with basic mathematical tools and simple statistics.
COURSE DESCRIPTION:
This course aims to impart a knowledge of application of python programming language for financial
modelling. The course demonstrates fundamental concepts of python programming such as data
importing, data pre-processing etc. The students will learn to build models using python libraries to
evaluate and analyze risk and return characteristics of securities.
COURSE LEARNING OUTCOMES:
Upon completion of course, the students will be able to:
CLO1: Describe features of python programing used in finance
CLO2: Use python features to perform basic finance operations
CLO3: Analyze financial data using python libraries
CLO4: Analyze portfolio and calculate its performance
CLO5: Apply machine learning models to predict stock returns
ALIGNMENT OF LEARNING OBJECTIVES AND COURSE LEARNING OUTCOMES:

S. No. Learning Objectives Course Learning
Outcomes (CLOs)
1.1 Develop sensitivity towards self, environment and society -
Curriculum of MBA (Finance / FA) II Year Applicable from the Academic Year 2022-24 1
1.2 Analyze organizational environment, culture and its impact on -
decision making
2.1 Demonstrate verbal and non-verbal communication in a cross- -

cultural environment
2.2 Develop professional etiquettes for effective business -

communication
2.3 Demonstrate impactful presentation skills -
3.1 Infer the nuances of Finance and its interconnectedness with CLO 3
other functional areas.
3.2 Demonstrate effective behavioral skills in Finance CLO 5
3.3 Demonstrate problem-solving and analytical skills CLO 3, CLO 4
3.4 Developing technical skills for decision-making CLO 1, CLO 2
4.1 Apply principles of ethics for sustainable business decisions -
4.2 Demonstrate integrity, empathy, and consistency. -
ASSESSMENT COMPONENTS AND SCHEDULE:

S. No. Components with Weightage of Brief Description of the CLO Measured
No. of Assessments each Assignment/ Project
Assessment
(%)
1. Quiz 1 10 1
2. Quiz 2 10 2
3. Quiz 3 10 3
4. Quiz 4 10 4 and 5
5. Group Assignment 10 Group Assignments/ Minor 1,2 and 5
Project
6. End- term External 20 1,2 and 5
Presentation
7. *End-term 40 1,2 and 5
examination
Total 100
Quizzes will be considered for the purpose of evaluation.
EXAMINATION SCHEME
The faculty member will award marks out of a maximum of 40 marks for the internal performance of
the student. The end-semester external presentation examination will be worth 20 marks. The end-
semester external theory examination will be worth 40 marks. It will have two sections A and B.
Section-A will be of 16 marks having three theory questions out of which students will be required to
attempt any two questions of 8 marks each. Section-B will be of 24 marks and will have five
numerical based questions of 8 marks each, students are required to attempt any three.
*End-term Examination Question Paper Guidelines:

Faculty who designed the question papers will not engage in evaluations. Faculty should design the
question paper based on the following criteria:
(a) equal distribution of questions across the syllabus;
(b) questions that would test their fundamental understanding of the subject (50%);
(c) questions that are application-based and thought-provoking (20%);
(d) questions that will evaluate the students' decision-making abilities (25%)
IMPORTANT: Please note that the duration of all sessions are 60 minutes. Sessions
will not be used to teach concepts, but they will be used to facilitate your learning.
This will require you to spend an hour to meticulously go through the pre-reads
and/or case studies as mentioned in the section below. Classroom sessions can be
utilized to clarify doubts and discuss application exercises. You will require to
again spend 30 to 45 minutes to practice the application problems as given in your
textbook and reference books or any other reference material to manifest the
concepts and gain command on the topic covered, after a session is over.
SESSION PLAN:
Sessio Session Details

Topic/Subtopic
n No.
1 Resource Pitabas Mohanty. Financial Analytics,

Wiley India, ISBN: 9789354644177. Page
Introduction to Finance
2-4
Analytics
Pedagogy PowerPoint Presentation & Classroom
 Analytics in Finance
Discussion
 Data-Driven Finance
CLO CLO1
SLO Understand the role of data in financial

decisions
Pre Read
Post Read Data Resources required for financial

analytics
Python IDE Resource Fabio Nelli - Python Data Analytics with
Pandas, NumPy and Matplotlib [2nd ed.]-
● Installing Anaconda Apress (2018) Page No.: 20-47
Pedagogy Class room discussions

● Introduction to Python
CLO 1
syntax
SLO Understand role of data driven finance
● Data Types in Python
Pre Read Different platforms available for python
o Numeric Data programming
2 Types: Int &
Float Post Read Practice Basic programs in python
o Sequential
Types: Str,
List, Tuple,
Dictionary and
Set
Run Basic Program in Python
Resource Fabio Nelli - Python Data Analytics with

● Concept of Libraries in
Pandas, NumPy and Matplotlib [2nd ed.]-
Pyhton Apress (2018) Page No.: 29-47
● Import New Libraries Pedagogy Class room discussions and Hands on

and Functions CLO 1
● SciPy SLO Understand role of data driven finance
Pre Read Revised basic syntax of Python

● Numpy
Post Read Explore features of libraries discussed in
● Pandas class
● Scikitlearn
Resource Pitabas Mohanty. Financial Analytics,
Wiley India, ISBN: 9789354644177.Page
● Fundamental Data 14-27
● Obtaining
Fundamental Data Pedagogy Lecture based discussion and hands-on
using Python
● How to download CLO 2
3
fundamental data from
online resources SLO How to obtain fundamental financial data
Pre Read Different Types of Data in Finance and

● Reading Data from their resources
Prowess
Post Read What is API?
Reading Data downloaded from ProwessIQ
in Python
● Market Data 38-44
Pedagogy Hands-on Using Python

● Yahoofinancials
CLO 2
4 Package
SLO Extract Market Data in Python
● Get Bond-Yield Data Pre Read Sources of Market Data. Yahoo Finance
Platform
● Datareader library
Post Read Download Daily prices of Bitcoin(BTC-
USD) and S&P500 (^GSPC) from Yahoo
finance.
 Alternate Data Wiley India, ISBN: 9789354644177.Page
Downloading 51-66
5  Google Search Data Pedagogy Hands-on Using Python
 Twitter Data
CLO 2
 Using API
SLO Downloading data from alternate sources
Pre Read Sources of Market Data. Yahoo Finance
Platform
Post Read Make List of Useful APIs with Finance
Applications. (Github/public-apis)
Wrangling Financial Data Resource Pitabas Mohanty. Financial Analytics,
● Reading Financial 67-95
Data from Pedagogy Class discussion with Hands-on using
Python
● CSV, Text and Excel
files CLO 2
SLO Getting data from various file formats to

● Getting Data from python
5 Internet
Pre Read Different file types and their inter
conversion
● Reading Data from
PDF files Post Read Practice to read data from various files
● Check Data Types

(Variable Types)
● Clean Variable Names
Wrangling Financial Data Resource Pitabas Mohanty. Financial Analytics,

● Managing Missing 95-120
Data Pedagogy Class discussion with Hands-on using
Python
6 ● Managing Invalid Data
CLO 2
● Managing Outliers SLO Learn to remove missing and invalid data
Pre Read Concept of Missing and Invalid data

● Long and Wide Form
Post Read Practice questions on missing data
Data handling and data validation
7 Understanding Basic Finance Resource Pitabas Mohanty. Financial Analytics,
using Python Wiley India, ISBN: 9789354644177. Page
175-192
Pedagogy Class discussion with Hands-on using

Python
● Time Value of Money
CLO 2
● Risk and Return SLO Perform basic finance operations using

python
Pre Read Concept of Future value and Betas
Post Read Solve questions on Estimating Factor Betas

using Python
196-220
 Asset Valuation Python
 Valuing Bond
8  Valuing Share CLO 2
 Options and their SLO Valuing different asset option using
Valuations python.
Pre Read Basic concepts of asset valuation
Post Read Valuing options using Black and Scholes

Model
● Accounting Data 227-237
Analytics Pedagogy Class discussion
● Introduction CLO 2
8 SLO Learn to identify patterns in financial
● Case 1: Detecting statements
Patterns in Financial Pre Read Case: Detecting Patterns in Financial
Statements Statements
Post Read Identify similar patterns in other data

● Case 2: Predicting
238-287
Pedagogy Class discussion
CLO 2
Corporate Bankruptcy SLO Build ML model to predict corporate
bankruptcy
Pre Read Case : Predicting Corporate Bankruptcy
Post Read Identify similar cases from internet

345-364

● Financial Fraud Python
Analytics
10 CLO 3
● Predicting Credit Card SLO Learn to identify financial frauds and their
Frauds patterns using programming
Pre Read Learn about some credit card frauds
Post Read Use SMOTE to oversample from minority

class for models discussed in class.
 Valuation Analytics Wiley India, ISBN: 9789354644177. Page
365-375
 Introduction
 Theory of Valuation Pedagogy Discussion with Hands-on using Python
 Projecting Revenue
11 CLO 3
 NOPAT
 Projecting Operating SLO Learn to Build Valuation model
Assets
Pre Read Theory of Business Valuation
Post Read Calculate Enterprise value for another

company
● Creating a Valuation
Function in Python 384-390
● Valuation of Walmart Pedagogy Discussion with Hands-on using Python

Inc. CLO 3
SLO Complete process of valuation using
sample data
Pre Read Revise the topics of last session
Post Read Collect Data for other company and find

density plot of its enterprise value
Portfolio Analytics
391-406
● Return and Risk of a Pedagogy Discussion with Hands-on using Python
Portfolio CLO 4
14
● Computing Mean and SLO Understand how risk and return are
Standard Deviation of computed in python
Portfolio Return Using Pre Read Concept of Risk and Return
Python
Post Read Using yfinance library get stock data of 3
company and compute return on them.
327-335
Pedagogy Discussion with Hands-on using Python

 Portfolio Optimization
15 CLO 4
using Python
SLO Portfolio optimization using python library
Pre Read Markowitz Optimization Process
Post Read Compute returns on ten stocks data.
16  Portfolio Performance Resource Pitabas Mohanty. Financial Analytics,

Evaluation Wiley India, ISBN: 9789354644177. Page
442-459
 Portfolio Insurance
CLO 4
SLO Portfolio Performance evaluation
Pre Read Concept of portfolio performance

evaluation and insurance
Post Read Practice python for 3 other companies
based on class learning
511-516
Predicting Stock
Prices/Returns Pedagogy
17  Predicting Stock CLO 5

Returns Based on
SLO Build regression model to predict using
Accounting Ratios
accounting ratio.
Pre Read Concept of Stock prediction
Post Read Practice code for other companies

 Predicting Stock 517-535
Returns (Prices) using Pedagogy Discussion with Hands-on using Python
Past Stock Returns
18 (Prices) Data CLO 5
 Random Walk Model SLO Build and compare two models to predict
 RNN and LSTM based on historical stock prices
 CNN
Pre Read Revise concepts of previous session
Post Read Practice on RNN and LSTM models

● Predicting Stock 541-545
Prices using Technical
Indicators
19 CLO 5
● Predicting Stock
SLO Predict stock prices using different
Returns using parameters
Valuation Multipliers
and Value Drivers Pre Read Technical Indicators and value drivers

● Predicting Returns
20 Based on Factor 550-558
Exposures/Stock
Characteristics Pedagogy Discussion with Hands-on using Python
CLO 5
SLO Learn to predict returns on stock

characteristics
Pre Read What are stock characteristics
REFERENCES:
Text Book:
1. Pitabas Mohanty. Financial Analytics, Wiley India, ISBN: 9789354644177.
2. Fabio Nelli - Python Data Analytics with Pandas, NumPy and Matplotlib [2nd ed.]-Apress
(2018)
Suggested Readings
1. Eryk Lewinson - Python for Finance Cookbook, 2nd Edition-Packt Publishing (2022)

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PRESTIGE INSTITUTE OF MANAGEMENT AND RESEARCH, INDORE

Program MBA-Financial Administration

Contact Number 8827888876

The prerequisites for this course are understanding some basics

ALIGNMENT OF LEARNING OBJECTIVES AND COURSE LEARNING OUTCOMES:

1.1 Develop sensitivity towards self, environment and society -

2.1 Demonstrate verbal and non-verbal communication in a cross- -

2.2 Develop professional etiquettes for effective business -

2.3 Demonstrate impactful presentation skills -

3.2 Demonstrate effective behavioral skills in Finance CLO 5

3.3 Demonstrate problem-solving and analytical skills CLO 3, CLO 4

3.4 Developing technical skills for decision-making CLO 1, CLO 2

4.1 Apply principles of ethics for sustainable business decisions -

4.2 Demonstrate integrity, empathy, and consistency. -

ASSESSMENT COMPONENTS AND SCHEDULE:

*End-term Examination Question Paper Guidelines:

Sessio Session Details

1 Resource Pitabas Mohanty. Financial Analytics,

SLO Understand the role of data in financial

Post Read Data Resources required for financial

Pedagogy Class room discussions

Resource Fabio Nelli - Python Data Analytics with

● Import New Libraries Pedagogy Class room discussions and Hands on

● SciPy SLO Understand role of data driven finance

Pre Read Revised basic syntax of Python

Pre Read Different Types of Data in Finance and

Pedagogy Hands-on Using Python

SLO Getting data from various file formats to

● Check Data Types

● Clean Variable Names

Wrangling Financial Data Resource Pitabas Mohanty. Financial Analytics,

● Managing Outliers SLO Learn to remove missing and invalid data

Pre Read Concept of Missing and Invalid data

Pedagogy Class discussion with Hands-on using

● Risk and Return SLO Perform basic finance operations using

Post Read Solve questions on Estimating Factor Betas

Post Read Valuing options using Black and Scholes

Post Read Identify similar patterns in other data

9 Resource Pitabas Mohanty. Financial Analytics,

Pedagogy Class discussion

Post Read Identify similar cases from internet

Resource Pitabas Mohanty. Financial Analytics,

Pedagogy Class discussion with Hands-on using

Post Read Use SMOTE to oversample from minority

Post Read Calculate Enterprise value for another

● Valuation of Walmart Pedagogy Discussion with Hands-on using Python

Post Read Collect Data for other company and find

Pedagogy Discussion with Hands-on using Python

Pre Read Markowitz Optimization Process

Post Read Compute returns on ten stocks data.

16  Portfolio Performance Resource Pitabas Mohanty. Financial Analytics,

SLO Portfolio Performance evaluation

Pre Read Concept of portfolio performance

17  Predicting Stock CLO 5

Post Read Practice code for other companies

Resource Pitabas Mohanty. Financial Analytics,

Post Read Practice on RNN and LSTM models

Resource Pitabas Mohanty. Financial Analytics,

Post Read Practice code for other companies

Resource Pitabas Mohanty. Financial Analytics,

SLO Learn to predict returns on stock

Post Read Practice code for other companies

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