Math for Quantitative Finance

Tour the mathematics used to model the chaos of the financial markets.

Financial Models


Value and Risk

Probability Warm-ups

Conditional Probability

Interview Preparation

Expected Value

Expected Utility

Interview Preparation



Indicator Variables

Interview Preparation


Normal Distributions

Log-normal Distributions

Hypothesis Testing

Parameter Estimation

Fermi Estimates



Linear Systems


An Overview of Markov Chains

Stationary Distributions

Transience and Recurrence

Course description

This course was written in collaboration with former quantitative traders from two leading firms. In this course, we'll dive into statistical modeling, matrices, and Markov chains, and guide you through the powerful mathematics and statistics used to model the chaos of the financial markets. By the end of this course, you’ll have the skills needed to ace a quantitative finance interview.

Topics covered

  • Bayes' Theorem
  • Expected Value
  • Fermi Estimation
  • Hypothesis Testing
  • Interview Prep
  • Markov Chains
  • Matrices
  • Parameter Estimation
  • Probability
  • Statistical Distributions
  • Utility Functions
  • Variance and Covariance

Prerequisites and next steps

You'll need some familiarity with probability and random variables.


  • Applied Probability
  • Calculus Fundamentals