Essential Quantitative Finance (761N1)
15 credits, Level 7 (Masters)
Autumn teaching
On this module, you’ll study key areas in calculus and algebra. You’ll learn how probability and statistics apply to random variables found in financial problems, such as asset returns.
You’ll explore:
- sample statistics and how they lead to probability distributions used in finance, including the binomial, Poisson, normal and lognormal distributions
- sampling distributions and how they’re applied to simple financial problems
- sample and population covariance and correlation
- the basic principles of simple linear regression and Ordinary Least Squares (OLS) estimation
- the general linear model, hypothesis tests and model specification
- omitted variables and other causes of autocorrelation and heteroscedasticity in applied financial problems.
Teaching
33%: Practical (Workshop)
Assessment
75%: Examination (Unseen examination)
Contact hours and workload
This module is approximately 150 hours of work. This breaks down into about 32 hours of contact time and about 118 hours of independent study. The University may make minor variations to the contact hours for operational reasons, including timetabling requirements.
We regularly review our modules to incorporate student feedback, staff expertise, as well as the latest research and teaching methodology. We鈥檙e planning to run these modules in the academic year 2025/26. However, there may be changes to these modules in response to feedback, staff availability, student demand or updates to our curriculum.
We鈥檒l make sure to let you know of any material changes to modules at the earliest opportunity.