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:

  1. One message per exhibit. Decide what a figure should prove before coding it; the title states the message, the axes carry the evidence.
  2. 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.
  3. 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.
  4. Legends below, framed, centered — not floating over your data. Benchmarks (the S&P 500) are always black.
  5. Annotate what matters. Heatmap cells carry their numbers; key points get labeled; reference lines (zero, β = 1, the 45° line) are drawn and named.
  6. Numbers have a house format. Coefficients and test statistics: 3 decimals. Percentages and summary statistics: 2. Observations: integers. Everywhere, consistently.
  7. Tables are booktabs. Horizontal rules only — no vertical lines, no colored stripes; numbers right-aligned.
  8. 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.
Week 2 Due Fri, midnight (Week 2)

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 →
Week 3 Due Fri, midnight (Week 3)

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 →
Week 4 Due Fri, midnight (Week 4)

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 →
Week 5 Due Fri, midnight (Week 5)

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 →
Week 6 Due 2 weeks — Fri, midnight (Week 7)

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 →
Week 7 Due Fri, midnight (Week 7)

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 →
Week 8 Due Fri, midnight (Week 8)

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 →
Week 9 Due Optional — not graded

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 →