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Financial Modeling


Formenti M.

Course director

Mazzari F.



The course provides the student with a theoretical & practical background in portfolio investments & risk management, with the principal goal of introducing the principles of asset valuation from an applied perspective. The following concepts will be introduced and discussed:

  1. Risk aversion, portfolio theory, risk-control and diversification.
  2. Equilibrium asset pricing versus no-arbitrage pricing; the CAPM and the APT.
  3. Equity valuation
  4. Performance evaluation.

The course is intended for students who want to become a money manager, an investment professional or who just want to be a wise investor. Within a rigorous analytical framework, the course offers plenty of real-world examples. 

Students profit from a hands-on approach including:

  • An experiential learning laboratory, described in detail below
  • Training in using Bloomberg, a leading software for trading and data analytics in finance


At the end of the course the student will be able: 

  1. to understand the theory behind the Asset Management and Asset Allocation
  2. to perform the asset allocation of third parties taking into account the different level of risk aversion of each investor
  3. to maximize the performance of a diversified portfolio in a risk-return perspective taking advantage from the extraordinary variety of financial instruments available to investors, ranging from fixed income products to hedge funds

Teaching mode

In presence

Learning methods

The course will run under a workshop format requiring active students’ involvement. Lectures are held throughout the entire semester. Students are responsible for learning the material before coming to class and for providing a meaningful contribution to the discussion led by the instructor. It means to be able to provide accurate and sensible answers and comments whenever personally quizzed by the instructor (it will happen several times during each lecture) and to contribute new and original ideas. 

In preparing for lectures students are required to know any detail of the required textbook chapters and they are invited to extend their reading to the academic papers that will be provided by the instructors, and to related paper discovered through personal search.

You are responsible for consulting on a regular basis the website of the course where updates, additional material and slides about the course are posted. No excuse accepted for any failure during the course you may incur into due to a delayed consultation of the website.

Examination information

The course grade for students attending classes will be based also on cases, Bloomberg certificates, experiential learning laboratory (see below). 

Cases: There are two/three case assignments. Cases should be done in groups of at max 3 members. Students are responsible for organizing these groups. 

Bloomberg training: Students are required to pass the Bloomberg Essential Training Program 

Attending students who:

  • delivered timely all the three assignments
  • pass the written exam at the first session will be graded on the basis of the following weights:
  • Cases 40%
  • Bloomberg Certificates 10%
  • Final Exam 50%

All other students will be graded 100% based on the written exam.