FINA2205 Quantitative Methods for Finance

This unit provides Accounting and Finance students with a background of various statistical techniques used in addressing financial decisions. The unit covers probability theory, regression and time series analyses with emphasis on practical rather than theoretical aspects. Applications to financial modelling include optimal portfolio, portfolio management and asset pricing.

Students are able to:

• Apply the concept of distributions of a random variable

• Explain different types of distributions such as Normal, Bernoulli, Exponential, Log-normal and Uniform

• Structure and test hypotheses

• Apply regression and time series techniques to analyse simulate/generate and analyse data based on statistical tools such as regression analysis

• Identify and understand the properties of commonly used time series models

• Apply regression and time series analyses to dynamic global financial markets such as options and portfolios

• Demonstrate ability to work in a team and to provide constructive feedback.