PC Labs
PC Labs are the hands-on core of the course: one project per week, done in groups, in Python, on real financial data.
Each lab is written as a short case study — you are dropped into a realistic professional situation with a concrete problem to solve. Read the case, download the data, and work through the assignment in a Jupyter notebook.
How it works:
- Submission: one Jupyter notebook per group, by email to the instructor and the TA. Email title (and notebook title):
PCLab#N - Group X - Name1 Name2 Name3. - Deadline: Friday of the lab’s week, midnight.
- Grading rewards four things: submitting on time, the quality of your code (comments, readability, use of functions), the structure of your notebook (well organized — explain what you are doing and why), and completing the tasks.
- Model solutions: after each deadline, a complete worked solution — code, output, charts, and commentary — is published on the lab’s page.
- Not every lab counts: your lowest lab score is dropped — so one bad week won’t sink you (full grading scheme on Course Info). The Week 6 Hackathon counts as a mandatory PC Lab; Lab 8 is entirely optional.
Beyond the grade: these projects make a genuinely good portfolio for CVs and job interviews.
How we present results
The model solutions follow the same exhibit conventions used in research papers — and points are earned by following them in your notebooks too:
- One message per exhibit. Decide what a figure should prove before coding it; the title states the message, the axes carry the evidence.
- Same entity, same color, everywhere. A reader should recognize Amazon (or “the strategy”, or “positive tweets”) by its color without re-reading the legend. Never rely on a library’s default color cycle.
- No chart junk. Remove the top and right spines; keep a light horizontal grid only where it helps reading; never use a second y-axis.
- Legends below, framed, centered — not floating over your data. Benchmarks (the S&P 500) are always black.
- Annotate what matters. Heatmap cells carry their numbers; key points get labeled; reference lines (zero, β = 1, the 45° line) are drawn and named.
- Numbers have a house format. Coefficients and test statistics: 3 decimals. Percentages and summary statistics: 2. Observations: integers. Everywhere, consistently.
- Tables are booktabs. Horizontal rules only — no vertical lines, no colored stripes; numbers right-aligned.
- Every exhibit is self-contained. A figure or table plus its surrounding text must be understandable without running the code: say what is shown, on which sample, and what to conclude.
PC Lab 1 — Applied Portfolio Theory
Your first week at an old-school asset manager: prove that Markowitz portfolio theory earns its keep by building — and stress-testing — a tangency portfolio on real stock data.
Open the case →PC Lab 2 — Applying the CAPM
A small hedge fund hires you to measure the systematic risk of its stocks — estimate betas and alphas, build a high-beta portfolio, and then test whether the CAPM actually survives the data.
Open the case →PC Lab 3 — Creating a Factor from Text Data
A sophisticated hedge fund wants to know whether Twitter can predict returns: clean real financial tweets, run sentiment analysis with modern NLP, and build a media-attention factor.
Open the case →PC Lab 4 — Predicting Stock Returns with ML
You're the new intern at Renaissance Technologies: train machine-learning models to predict returns from prices and volumes, then let your AI run a portfolio — trading fees included.
Open the case →Hackathon — NGO Campaigns & Responsible Investment
Two weeks, real research data, a menu of tasks: do stock markets react when NGOs campaign against banks? Event studies, sentiment analysis, and sustainable finance in one project.
Open the case →PC Lab 6 — Predicting Credit Scores with ML
JP Morgan wants to replace its loan officers with an algorithm — train a model that classifies firms by default risk, compete on true-positive ratio, and face the welfare consequences of your classifier.
Open the case →PC Lab 7 — Bank Customers Segmentation
A bank squeezed by FinTech competition hires you as a consultant: segment its credit-card customers with K-means, find the optimal number of clusters, and tell marketing exactly whom to target.
Open the case →PC Lab 8 — Measuring Startup Innovation
Sequoia Capital hires you to find the needle in the haystack: topic-model thousands of patent abstracts and hunt for breakthrough patents with textual similarity — entirely optional, entirely for fun.
Open the case →