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Optimization_in_Finance.md

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Optimization in finance

Introduction

This course is an introduction to optimization in finance.

Topics

It will cover the following topics:

  • Extrema
  • Hessian-matrices
  • Lagrange multipliers
  • Linear programming
    • Graphical solution
    • Simplex method
  • Mixed constrained optimization
  • Dual problems in linear programming
  • Kuhn-Tucker conditions
  • Nonlinear programming
  • Convex and concave functions
  • Cobb-douglas functions in n variables

Assesment

Each week there is a quiz on the previous weeks material Midterm on the 10. at 10:00

Lesson Notes

  1. Chapter 1 (Partial derivatives & Hesse)s

Lesson Materials

  1. Intro
  2. Entire Lecture (continuously updating)
  3. Slide Partial derivatives
  4. Slide Lagrange multipliers
  5. Slides Linear programming

Exercises

  1. Exercise Chapter 1
  2. Exercise Chapter 2

Tests

  1. Test Chapter 1