01
Returns, compounding and log returns
Why do quants work in logs?
Core · Module 04
Probability & Statistics for Markets
Where the Mathematics track pays its dividend. Most financial blow-ups are a normal-distribution assumption meeting a non-normal world.
By the end of this module
You can describe return distributions honestly — including the tails that standard models pretend do not exist.
0%0 / 3 complete
02
Volatility, correlation and fat tails
How often is a '6-sigma event' actually supposed to happen?
Primary source★ LandmarkFree
The Variation of Certain Speculative Prices ↗Benoit Mandelbrot, 1963
The first serious argument that market returns are not normal.
03
Time series and the efficient market hypothesis
Is price movement predictable at all?
Primary source★ LandmarkFree
Efficient Capital Markets: A Review of Theory and Empirical Work ↗Eugene Fama, 1970
CourseFree
ECON 252: Financial Markets ↗Robert Shiller, Yale
Shiller won a Nobel for disagreeing with Fama. Take both courses.
Quiz
Not written yet for this module. The lectures above are complete and the module still counts toward your progress.