T.A.

PAI MANAGEMENT INSTITUTE (TAPMI), MANIPAL

FINANCIAL ANALYTICS USING PYTHON

Programme: PGDM - BKFS

Batch: 2020-2022
Term: 5
Course Name: Financial Analytics Using Python – BFS 6701
Credits: 2 (20 Hours)
Course Instructors: Prof. Vishwanathan Iyer (Core), Prof. Manish Sarkhel (Core)

PART 1
INTRODUCTION
Python is emerging as an indispensable tool for business analysts today. Ease of coding and
availability of packages is rapidly making Python one of the most important and popular
programming languages. This course aims to achieve two objectives of teaching
programming in Python and building functions and models for solving problems related to
financial management. No prior programming background is required for this course. The
first 10 sessions will teach programming in Python, after which caselets will be used to solve
specific questions related to finance.

COURSE OBJECTIVES (CO)

 To understand and write codes in Python

 To analyze stocks using Python
 To be able to build functions and models for solving problems related to financial
management

COURSE LEARNING OUTCOMES (CLO)

By virtue of the learning gained in this course, the students should be able to:
CLO 1: Good grasp of fundamentals of Python for applications in Finance (PLG 1)
CLO 2: Analyze equities and bonds using Python (PLG 2)
CLO 3: Construct models & dashboards, analyze and interpret solutions obtained using
Python (PLG 3)
COURSE CONTENT
Basic Programming in Python (literals, operators, statements and identifiers), Datatypes (Int,
float, string and char), Conditional Statements (If, else and elif), Loops in Python (For, While,
Break, Continue and Pass), Functions and Data structures in Python (Lists, Dictionaries,
Tuples, Call-by Object and Functions in Python), Data Wrangling in Python (Importing and
manipulating data with Pandas, Data cleaning, Data extraction and Advanced Pandas
Functions), Data Visualization in Python with Seaborn (Scatter Plots, Box Plots, Scatter Plots,
Box-and-Whisker Plots Together, Histograms, Count plots and Heatmaps), Evaluating stocks
and bonds using Python, CAPM, Multifactor models and Performance measures with
Python, Portfolio theory with Python, Options and Futures with Python, Value at Risk

PRESCRIBED TEXTBOOKS
 A Byte of Python (https://python.swaroopch.com/)

ASSESMENT SCHEME AND WEIGHTAGE

(a) END TERM

Duration (in Open/close

Evaluation Weightage (%) CLO Tested
minutes) Book

End Term 50 120 After Session 20 CLO 3

(b) OTHER ASSESMENTS

Evaluation Unit of
S.No. Weight Time CLO
Type Evaluation

1 Quiz Individual 15% After Session 10 CLO 1

2 Assignment Individual 10% After Session 15 CLO 2

3 Group Presentation Group 10% After Session 18

Group Project
4 Group 15% After Session 20
Submission
 PART 2: SESSION PLAN

Session Topic (s) Intended Learning Outcome Reference Pedagogy

Introduction to Python
 Anaconda & Jupyter
installation
 Primer of Python Lecture,
 Installation of new In this session participants will be A Byte of class
1 packages using pip introduced to the basics of Python (Sec. exercise
 Basic Programming in Python programming 1.4-1.8) and
Python (literals, operators, discussion
statements, identifiers)
 Datatypes (Int, float, string,
char)

Conditional Statements and

Loops in Python Lecture,
 Conditional Statements (If, In these sessions’ participants will A Byte of class
2-3 else, elif) learn about the basic building Python (Sec. exercise
 Loops in Python (For, blocks of Python programming 1.7-1.9) and
While, Break, Continue, discussion
Pass)

In these sessions’ participants will

Functions and Data structures
learn about functions and data
in Python Lecture,
structures in Python
 Lists A Byte of class
programming which will help
4-5  Dictionaries Python (Sec. exercise
them understand Data
 Tuples 1.10-1.13) and
manipulation, visualization and
 Call-by Object and discussion
machine learning operations in
Functions in Python
Python
Post-Read:
https://pandas
In these sessions’ participants will .pydata.org/pa
Data Wrangling in Python understand how to import a real- ndas-
 Importing and world dataset in Python docs/version/
0.17.0/pandas
manipulating data with environment, clean it and make it .pdf Lecture,
Pandas ready for analysis. Furthermore, (Pg. 249- class
 Data cleaning participants will also learn various 271)
6-7 exercise
 Data extraction useful operations in Pandas which Dataset: and
 Advanced Pandas will help them flexibly tackle http://biostat. discussion
Functions majority of the challenges mc.vanderbilt.
 Pair Trading Using associated with real world edu/wiki/pub/
business datasets. Main/DataSets
Python
/titanic.html

8-10 Data Visualization in Python In these sessions’, participants Post-Read: Lecture,

with Seaborn will understand how to visualize https://seabor class
Session Topic (s) Intended Learning Outcome Reference Pedagogy

n.pydata.org/t
utorial.html
 Scatter Plots
 Box Plots Dataset:
 Scatter Plots http://biostat.
 Box-and-Whisker Plots mc.vanderbilt. exercise
and interpret real world datasets edu/wiki/pub/
Together and
in Python Main/DataSets
 Histograms /titanic.html discussion
 Count plots
 Heatmaps https://www.k
aggle.com/har
lfoxem/houses
alesprediction

Quiz (WT - 15%)

Time value of money with

Lecture,
Python
class
 NPV
11 exercise
 FV
and
 Amortization
discussion
 Capital Budgeting

Bond valuation with Python

Lecture,
 Duration
class
 Factors affecting
12 exercise
duration
and
 Dollar duration & bond
discussion
price prediction

CAPM, Multifactor models

and Performance measures
Lecture,
with Python
class
 CAPM
13-14 exercise
 Alpha & Multifactor
and
Models
discussion
 Extensions of the 3-
Factor Model

Lecture,
Portfolio Theory with Python class
15-16  Portfolio Optimization exercise
and
discussion

Assignment (WT - 10%)

17 Options and Futures with Lecture,

Python class
Session Topic (s) Intended Learning Outcome Reference Pedagogy

exercise
 Put Call Parity
and
 Black Scholes Model
discussion

Value at Risk
Lecture,
 Dynamic covariance in
class
portfolio optimization
18 exercise
 Dynamic beta in
and
portfolio management
discussion

Group Presentation (WT - 10%)

Group Presentation Details: (Total Details will Discussion

duration: 10 minutes for be shared and
19-20 Group Presentation
presentation+2 minutes for Q & during the presentatio
A) course n

Group Project Submission (WT - 15%)

PLG MAPPING FOR THE COURSE

Addressed by
PLG# Program Level Learning Goal Course? CLO No.
(Yes/No)
Applications of Fundamentals
Traits: Demonstrate application of
PLG1 Yes CLO 1
functional/conceptual knowledge to business
situations
PLG2 Problem Identification and Solution Yes CLO 2
Traits: Demonstrate ability to identify a
problem, critically assess various alternatives
 and suggest appropriate solution
Integrative Thinking
Traits: Demonstrate ability to identify inter-
PLG3 linkages among functional area within an Yes CLO 3
enterprise and assess the impact of external
environment on its performance
Effective Communication
PLG4 Traits:Demonstrate proficiency in Oral and No NA
Written Communication
Ethical Responsibility
PLG5 Traits:Demonstrate awareness and assess No NA
impact of ethical behavior on business
Leadership
PLG6 Traits: Demonstrate capability to take No NA
leadership role in business situation

*****

Name of Faculty: Prof. Vishwanathan Iyer & Endorsed by:

Prof. Manish Sarkhel Signature & Date: _________________
Signature & Date:_____________________