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AFM 423Topics in Financial Econometrics

Units
0.50
Faculty
Arts
Subject
Accounting and Financial Management
Cross-listed
ACTSC 423

When it runs

  1. F24
  2. W25
  3. S25
  4. F25
  5. W26
  6. S26
  7. F26
  8. W27
  9. S27

Ran in 3 of the last 7 terms. Winter 2027: scheduled, 2 lecture sections. Spring 2027: schedule not out yet.

This course introduces the use of advanced econometric/statistical methods in studying financial market data, and in quantitatively assessing risks associated with financial investments. The methods presented in this course are tailored to address specific issues of interest in finance, such as the quantification of the risk-return tradeoff, the modelling of time-varying stock/bond market volatility and, possibly, also the statistical analysis of financial derivatives such as options.

Prerequisites

  • Must have completed at least 1 of the following:
    • AFM323 - Quantitative Foundations for Finance (0.50)
    • STAT331 - Applied Linear Models (0.50)
    • STAT371 - Applied Linear Models and Process Improvement for Business (0.50)
    • STAT373 - Regression and Forecasting Methods in Finance (0.50)
    • STAT374 - Quantitative Foundations for Finance (0.50)

Antirequisites

None listed.

Leads to

No course lists it as a requisite.

Winter 2027 sections

Enrolment from UW Open Data, which can trail Quest by up to two days. Instructors and rooms: Schedule of Classes.
SectionClassEnrolledMeets
LEC 00138081 / 35MW 17:30–18:50
LEC 701129126 / 9999Online or by arrangement

Reviewed on UW Flow

90% liked it79% easy96% useful

From 10 ratings and 6 comments on UW Flow. The most helpful comments, quoted as written, without names. Read them all on UW Flow.

  • as easy/challenging as you want. one of the best class in undergrad

    Feb 2026 · liked itOn UW FlowRemove this

  • Good course, the prof is crazy good. You can get away with barely doing any work or basically write a research thesis. Out of 70, only 7-8 people attend the lectures. One of the best course for quant.

    Mar 2025 · liked itOn UW FlowRemove this

  • Tony is the best! Makes the course very easy, you barely need to do work if you choose not to, but also you can go in as much detail as you want. There is a project in the course which you can do alone or in a group, you are free to choose your topic as long as it is related. It's nice as you get exposed to doing things on your own, and it's more focused on methodology and technical skills than other analytics courses in SAF which still place emphasis on memos and "business communication".
    The course is always about machine learning in finance, most of the lesson plan follows a book on factor investing with machine learning.
    Tony is a very brilliant professor, I'd say the best professor…

    Apr 2024 · liked itOn UW FlowRemove this

  • You are pretty much free to do whatever you want in this course - as much as you want and as little as you want. Prof Tony doesn't believe in tests so yay, no exams. He is supper passionate and is very very supportive.
    You do need knowledge of some basic stats, even though the course doesn't require it. Really enjoyed it, would take it again.

    Apr 2024 · liked itOn UW FlowRemove this

  • Super easy course. Tony makes the assignments really easy. Topics are interesting, covers most machine learning concepts such as bias vs variance, multiple linear regressions, decision trees + boosting, neural networks. Tony has a strong emphasis on the fundamentals so no prior knowledge is required. Also don't worry if you don't have the prereqs, just email Tony and he'll waive them for you.

    Aug 2023 · liked itOn UW FlowRemove this

Discussed on r/uwaterloo

16 posts and comments in 14 threads mention AFM 423, October 2017 to December 2024. Quoted word for word, newest first; each reply sits under the post and the comment that started its branch. Search r/uwaterloo for newer posts.

Fall 2024

ECON 423 vs STAT 443 5 points, 2 comments

“Econ 423 - time series econometrics https://uwflow.com/course/econ423 Stat 443 - Forecasting https://uwflow.com/course/stat443 these two courses looks very similar, have anyone take these courses? …”

u/Agreeable-Air-5080: “My guess would be stat443 is harder and possibly more useful - but I haven’t taken these, although I plan on taking stat443. I’d recommend also looking into AFM423”

u/SheepherderOdd9017: “have you already took AFM423? I checked the comment on uwflow, they said this course doesnt have exam, instead it has 2 projects. the preq is stat331, will it be ok if i don't have any finance/accounting background?”

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Spring 2024

AFM help wanted 1 point, 1 comment

“Hello. I’m choosing between AFM 323 and 401 as electives. Have anyone taken them (or are taking them now)? If so, what are they like? Any help/advice is welcomed. Thank you!!!”

u/Ok-Valuable-7007: “I made the wrong choice.”

u/Over-Elevator-3481: “… if you choose to take 323 and like it, you can go on to take afm 423 in winter terms or look into econometrics sequence in the econ department. …”

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Winter 2024

Fall 2023

4b courseload? 1 point, 7 comments

u/richard--b: “… Wanted to get some input on how my courseload looks next term AFM 423 (topic in financial econometrics) Econ 421 (econometric theory) Econ 391 (equilibrium in market economics) Econ 306 (macroeconomics) Math 138 (calc 2) Not much I can change tbh, since I need most if not all of …”

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Spring 2023

ECON 211 1 point, 19 comments

“Hi, I am ARBUS student pursuing an ECON major which requires me to take ECON 211. I heard from my advisor that this a tough course and considering I am mediocre at math what would you recommend me …”

u/Low-monthly-payments: “Honestly, don't major in Econ if math is your weakness, unless you are prepared to work really hard. Econ 211 and 221 are the 2 second year math courses. …”

u/richard--b: “Hi I'm here insanely late, but do you think it would be possible to get away with taking Econ 421 and AFM 423 rather than Econ 421 and Econ 423? …”

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Fall 2021

Winter 2021

AFM CPA/CFA Pathway 0 points, 21 comments

u/Drip_Killa: “… AFM 423 - Topics in Financial Econometrics | (4) BA and (4) Financial Markets Spec.) 5. AFM 424 - Equity Investments | (CFA) Spring (Year 4) - Co-op Fall (4B) 1. AFM 445 - Information Technology Assurance and Audit Analytics | (5) BA Spec. 2. …”

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Check it elsewhere for Fall 2026

Calendar versions

Undergraduate Calendar