FINA5521 Quantitative Methods in Finance

Credit
6 points
Offering
(see Timetable)

If this unit does not have an online alternative, then students who are presently unable to enter Western Australia and whose studies would be delayed by an inability to complete this unit, should contact the unit coordinator (details given on this page) to ascertain, on an individual case-by-case basis, if alternate arrangements can be made to support their study in this unit.

AvailabilityLocationMode
Semester 1UWA (Perth)Face to face Predominantly face-to-face. On campus attendance required to complete this unit. May have accompanying resources online.
Semester 1UWA (Perth)Online timetabled 100% Online Unit. NO campus face-to-face attendance is required to complete this unit. All study requirements are online only. Unit includes some synchronous components, with a requirement for students to participate online at specific times.
Semester 2UWA (Perth)Face to face Predominantly face-to-face. On campus attendance required to complete this unit. May have accompanying resources online.
Semester 2UWA (Perth)Online timetabled 100% Online Unit. NO campus face-to-face attendance is required to complete this unit. All study requirements are online only. Unit includes some synchronous components, with a requirement for students to participate online at specific times.
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 assignment; 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
  • 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 one week prior the commencement of study. Reading lists and essential textbooks are subject to change each semester. Information on essential textbooks will also be made available on the Essential Textbooks. This website is updated regularly in the lead up to semester so content may change. It is recommended that students purchase essential textbooks for convenience due to the frequency with which they will be required during the unit. A limited number of textbooks will be made available from the Library in print and will also be made available online wherever possible. 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.