Finance and insurance

Students learn how to formulate mathematical models to tackle relevant finance and asset management problems, in particular those related to Portfolio Selection. They are introduced to different quantitative analysis and decision tools, mainly based on Optimization and Mathematical Programming. In addition, they acquire the capacity of using, understanding, and developing computational tools suitable for the efficient solution of the models proposed. Particular goals 1) Knowledge and understanding. At the end of the course, students will have a sound knowledge of optimization theory and of the main algorithms to solve optimization problems. They will also know the main optimization models used in finance and particularly in Portfolio Selection and Asset Management. 2) Applying knowledge and understanding. This course will enable students to address several practical problems in finance and asset management with the aid of quantitative models and with the use of computational tools for their solution. For each specific problem they will know which is the best fitting model and they will be able to evaluate the output solutions also under a multicriteria viewpoint. 3) Making judgements. On the basis of the knowledge variety of models presented in the course and of the capacity of each of them to capture the essence of a problem, students will develop an attitude to critical thinking and rigorous reasoning, being aware of the relations between models and real problems to which they are applied. They will be able to structure a problem, identifying the fundamental elements that should be included in the model which represents it. 4) Communication skills. To deal with decision problems via the application of quantitative models it is necessary to know a proper formal language. Students will be asked to discuss models and present the arguments of the course, also in a group collaboration. They will be stimulated by the teacher to write models in their algebraic form and to illustrate them orally. This is important for the student to become familiar with the use of the formal language, but also to reach the capacity of illustrating and explaining the models to every possible interlocutor, possibly using a non-technical language, but however precise and rigorous. 5) Learning skills. During the course the students will be required to conduct autonomous researches, with possible support from the teacher when necessary, referring to the related literature and reading specific papers published in the scientific journals of the disciplinary field. Students will be subsequently capable to deepen and continue the studies in this field. More generally, they will acquire the capacity of performing bibliographic researches on a specific subject of their interest. This is also useful for the student for the future development of her/his master thesis.