I talk about a common malpractice of mixing the notion of returns with log returns in the finance literature.

I discuss a commonly used VaR estimation method that utilizes Monte Carlo simulations.

I discuss a commonly used unsupervised learning method called clustering via K-means algorithm.

I discuss Value at Risk of a single asset under the assumption the price changes of the latter is governed by a geometric Brownian motion.

I provide a gentle introduction to two important concepts; VaR and CVaR which are commonly used for quantifying risk in financial markets.

I explore a commonly used investment strategy called hedging and its relation with the minimum global variance portfolio focusing on a simple portfolio of two assets.

I explore the concept of diversification as an investment strategy its mathematical foundations set by the so called Modern Portfolio Theory.

I explore one of the fundamental concepts in stochastic calculus; Ito-Doeblin lemma and utilize it to derive a simple model for the time evolution of a single risk factor (e.g stock price).

I provide a gentle introduction to the binomial distribution and its statistical properties.

A gentle introduction to random walk process and its use in modelling financial asset price movements.