FINA5521 Quantitative Methods in Finance

Credit
6 points
Offering
(see Timetable)
AvailabilityLocationMode
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
Indicative assessments in this unit are as follows: (1) quizzes; (2) group assignments; and (3) examination. Further information is available in the unit outline.

Supplementary assessment is not available in this unit.
Unit Coordinator(s)
Dr Yihui Lan
Unit rules
Prerequisites:
FINA5533 Finance Essentials (or equivalent) and FINA5632 Investments
Contact hours
lectures/seminars/workshops: up to 3 hours per week
Unit Outline
Semester 1-2020 [SEM-1-2020]
  • The availability of units in Semester 1, 2, etc. was correct at the time of publication but may be subject to change.
  • All students are responsible for identifying when they need assistance to improve their academic learning, research, English language and numeracy skills; seeking out the services and resources available to help them; and applying what they learn. Students are encouraged to register for free online support through GETSmart; to help themselves to the extensive range of resources on UWA's STUDYSmarter website; and to participate in WRITESmart and (ma+hs)Smart drop-ins and workshops.
  • Unit readings, including any essential textbooks, are listed in the unit outline for each unit one week prior the commencement of study. The unit outline will be available via the LMS and the UWA Handbook. Reading lists and essential textbooks are subject to change each semester. Essential textbooks can be purchased from the commercial vendors to secure the best deal. The Student Guild can provide assistance on where to purchase books if required. Books can be purchased second hand at the Guild Secondhand bookshop (second floor, Guild Village), which is located on campus. Copies of textbooks and other readings will be made available for students to access from the Library, online wherever possible as well as in print.