The student is interested in mathematics and statistics/econometrics in a macroeconomic and financial context.

The student knows the basic principles of estimating a linear regression analysis in a multivariate setting.

The students is able toformulate and estimate a regression model. We note that these principles are taught in any basic econometric course.

The use of any software package using econometric tools is required. The course will use STATA as a software package but prior knowledge of STATA is not a minimum requirement for the competence.

The student is able to gain financial insights in data interpretation.

This concerns a transition curriculum. No contact sessions are provided. The student is only required to participate in the evaluation.

The structure of the course entails a theoretical part whereby empirical methods are explained using financial applications as well as an empirical part whereby students work on computer applications using statistical software (STATA). In addition, some practical assignments will also be organized. The following topics will be discussed:

*Regression and volatility

*forecasting techniques (Direct forecasting models, (G)ARCH modellen)

*Portfolio theory of Markowitz with an empirical application

*Capital Asset Pricing Model (CAPM)

*Efficient Market Hypothesis

*Exchange rate forecasting