Business Analytics

Course topics

Part 1. Economic Modeling. Maximizing company profits in a competitive environment

  • Modeling and calibrating the demand curve
  • Modeling of non-price factors of influence on the demand curve
  • Modeling and calibrating the cost function
  • Multifactor regressive models for estimating sales volumes
  • Monopoly pricing and maximizing profits with allowance for advertising costs
  • Segmentation of the market and the model of differentiated pricing
  • Models of the economy of exchange and finding a generally competitive equilibrium in the boxes of Edgeworth
  • Models of competition
  • Stokelberg Competition Model: price leadership and leadership in production volumes
  • Model of the Cournot competition and finding Nash equilibrium with homogeneous goods
  • Model of Bertrand competition and finding a Nash equilibrium with differentiated goods
  • Multi-attribute Fishbein model

Part 2. Financial Economics. Financial contract evaluation models

  • The cost of money in time and the model of equivalent payments
  • Personal Financial Planning
  • Calibrate the yield curve of interest rates
  • Complete and incomplete markets
  • Finding equilibrium prices for investment projects
  • The estimated value of investment projects when buying and selling using the risk-free equivalence concept
  • Binomial market model
  • Assessment of conditional requirements in a binomial model
  • Cox-Ros-Rubinstein model for estimating the cost of conditional claims
  • Black–Scholes Option Pricing Model
  • Application of OPM model in corporate finance

Part 3. Financial Econometrics

  • Parametric and nonparametric functions of the distribution of profitability of financial products and the values of investment criteria
  • Normalized moments of stock return sampling, their visualization and use in financial analysis
  • Generation of one-dimensional random variables with given characteristics
  • Two-dimensional parametric random variables, calibration of their parameters and generation of multidimensional random variables
  • Target functions of the efficiency of investment management – investment criteria: Sharpe, Treinor, Jensen, Markovitsa and their modified counterparts
  •  Models of optimal stock portfolio management and solving quadratic programming tasks

Part 4. Analytical models of investment project evaluation

  • Investment criteria (NPV, IRR, DPP, NPV-BEP) and their application to investment decisions
  • Analysis of the sensitivity of investment projects
  • Using decision trees to evaluate investment projects
  • The concept of an extended NPV
  • Scenario analysis of investment attractiveness
  • Monte Carlo simulative analysis of investment project risk assessment

Prerequisites