Course description

Quantitative Methods for Finance

Introduction

This course lays foundation for understanding of quantitative methods most commonly used in finance worldwide. These include time value of money, statistical concepts, probability concepts, hypothesis testing, regression analysis, and simulation methods. This course also introduces MATLAB programming, an essential programming language that will be used in the rest of the programme.

Course content

Part I: Review

  1. Time value of money
  2. Probability theory
  3. Descriptive statistics
  4. Sampling and estimation
  5. Hypothesis testing

Part II: Regression analysis

  1. Simple linear regression
  2. Multivariate regression
  3. Issues in regression analysis

Part III: Modelling uncertainty with Matlab

  1. Modelling uncertainty in financial markets
  2. Monte Carlo simulation

Learning outcome knowledge

In this course the students will develop their understanding with respect to two important areas of quantitative analysis:

  • Preliminary data analysis using the standard statistical inferences, its applicability and limitations.
  • The structured algorithmic way of thinking about financial data analysis and modelling

Exam organisation

  • Written assignment: 20%
  • Written exam: 30%
  • Written exam: 50%