ICM124-Introductory Quantitative Methods for Finance

Module Provider: ICMA Centre
Number of credits: 10 [5 ECTS credits]
Level:7
Terms in which taught: Autumn term module
Pre-requisites:
Non-modular pre-requisites:
Co-requisites:
Modules excluded:
Current from: 2022/3

Module Convenor: Dr Gita Persand
Email: gita.persand@icmacentre.ac.uk

Type of module:

Summary module description:

This module is delivered at °ÄÃÅÁùºÏ²Ê¿ª½±¼Ç¼ and °ÄÃÅÁùºÏ²Ê¿ª½±¼Ç¼ Malaysia.

This module provides you with the foundation necessary to successfully understand and apply the quantitative techniques commonly used in the finance industry. The lecture covers the theory and key concepts. The seminars and workshop provide the opportunity to emphasise the practical applications of the techniques in the global financial markets.

Aims:

The objective of the module is to give students the quantitative tools so that they understand the analytical techniques used in the finance research literature. Via case studies and computer modelling exercises, students then learn how to apply these techniques to real data.

Assessable learning outcomes:

By the end of the module, it is expected that the student will be able to

• Solve a system of equations


• Comfortably use mathematical operators


• Formulate and estimate econometric models


• Make statistical inference after estimating an econometric model

Additional outcomes:

The module aims to encourage the development of IT skills and in particular the manipulation of data using statistical software packages. Students will also improve their ability to translate abstract theoretical concepts into practical solutions to financial problems.

Outline content:

Topic 1 Mathematical operations and Functions

Topic 2 Linear Algebra: system of equations and matrix algebra

Topic 3 Differentiation and linear programming

Topic 4 Regression Models

Topic 5 Statistical inference

Brief description of teaching and learning methods:

Core lectures supported by lab based computer seminars and classroom based tutor led discussion.

Summative assessment- Examinations:

1.5-hour examination. The written exam will be multiple-choice based.

The examination for this module will require a narrowly defined time window and is likely to be held in a dedicated exam venue.

Summative assessment- Coursework and in-class tests:

Formative assessment methods:

Penalties for late submission:

Penalties for late submission on this module are in accordance with the University policy. Please refer to page 5 of the Postgraduate Guide to Assessment for further information:

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Assessment requirements for a pass:

50% weighted average mark.

Reassessment arrangements:

By examination only, as part of the overall examination arrangements for the MSc programme.

Re-sit examination to be taken in August/September.

Additional Costs (specified where applicable):

Required text books:

Introductory Econometrics for Finance 2019 (4th edition) by Chris Brooks. Cambridge University Press ISBN: 978-1108436823. £49.99

Last updated: 16 November 2022