UWA Handbook 2017

Unit details

FINA5521 Quantitative Methods in Finance

Credit 6 points
(see Timetable)
Semester 1UWA (Perth)Face to face
Semester 2UWA (Perth)Face to face
Content This unit examines how various statistical techniques can be applied to assist in reaching optimal financial decisions. Appropriate aspects of probability theory, regression, time series and simulation analyses are covered. Practical rather than theoretical aspects through financial modelling applications such as those employed in portfolio and risk management are emphasised throughout.
Outcomes Students are able to (1) explain the concept of probability distributions of a random variable and four moments of the distribution, being the mean, variance, skewness and kurtosis; (2) provide descriptive statistics of random variable; (3) measure dependence between two random variables using correlation analysis; (4) conduct hypothesis testing and regression analysis; (5) identify and understand the properties of commonly used time series models and how to generate or simulate time series; (6) construct optimal portfolios based on the Markowitzs theory of optimal allocation of securities; (7) measure risk of an investment, e.g. value-at-risk; and (8) conduct technical and fundamental analyses.
Assessment Typically this unit is assessed in the following ways: (1) assignments and tests; (2) presentation; and (3) final examination. Further information is available in the unit outline.

Supplementary assessment is not available in this unit.
Unit Coordinator(s) Dr Adrian Scaffidi
Unit rules
Prerequisites: MGMT5504 Data Analysis and Decision Making
Incompatibility: FINA2205 Quantitative Methods for Finance
Contact hours lectures/seminars/workshops: up to 3 hours per week
Unit OutlineSemester 1 : http://www.unitoutlines.biz.uwa.edu.au/Units/FINA5521/SEM-1/2017
Semester 2 : http://www.unitoutlines.biz.uwa.edu.au/Units/FINA5521/SEM-2/2017

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