SES # | TOPICS | KEY DATES |
---|---|---|

1 | Permutations and combinations | |

2 | Multinomial coefficients and more counting | |

3 | Sample spaces and set theory | |

4 | Axioms of probability | |

5 | Probability and equal likelihood | Problem Set 1 due |

6 | Conditional probabilities | |

7 | Bayes’ formula and independent events | |

8 | Discrete random variables | Problem Set 2 due |

9 | Expectations of discrete random variables | |

10 | Variance | Problem Set 3 due |

11 | Binomial random variables, repeated trials and the so-called modern portfolio theory | |

12 | Poisson random variables | |

13 | Poisson processes | Problem Set 4 due |

14 | More discrete random variables | |

15 | Review for midterm exam 1 | |

16 | Midterm exam 1 | |

17 | Continuous random variables | |

18 | Normal random variables | Problem Set 5 due |

19 | Exponential random variables | |

20 | More continuous random variables | |

21 | Joint distribution functions | Problem Set 6 due |

22 | Sums of independent random variables | |

23 | Expectation of sums | |

24 | Covariance and some conditional expectation exercises | Problem Set 7 due |

25 | Conditional expectation | |

26 | Moment generating functions | |

27 | Weak law of large numbers | Problem Set 8 due |

28 | Review for midterm exam 2 | |

29 | Midterm exam 2 | |

30 | Central limit theorem | |

31 | Strong law of large numbers and Jensen’s inequality | |

32 | Markov chains | Problem Set 9 due |

33 | Entropy | |

34 | Martingales and the optional stopping time theorem | |

35 | Martingales and risk neutral probability | |

36 | Risk neutral probability and Black-Scholes | |

37 | Review for final exam | Problem Set 10 due |

38 | Review for final exam (cont.) | |

39 | Review for final exam (cont.) | |

40 | Final exam |

## Calendar

## Course Info

##### Learning Resource Types

*assignment*Problem Sets

*grading*Exams with Solutions

*notes*Lecture Notes

*menu_book*Online Textbook

*Instructor Insights*