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.

I discuss a powerful theorem which has important implications on linear models theory and their applications on regression problems.

I discuss ordinary least squares (OLS) aka linear regression, a common parametric model that optimizes regression coefficients by minimizing the sum of residual squares.