Quantitative Techniques for Financial Economics: I

EMEC020S4 (30 credits)
Year 1

Lecturer: Ranch Patel

Aims

This course introduces the basic quantitative techniques required in other courses of the degree programme. The aim is to show how these techniques work and how they can be used to understand the structure and operation of the economy and the financial system.

The first half of the course covers mathematical techniques and the second half covers basic statistics.

a) Basic Mathematical Techniques

Required Reading

Ian Jacques, Mathematics for Economics and Business, FT Prentice Hall, 5th Edition.

Lecture Schedule

• Linear Equations; Ch 1
• Non-Linear Equations; Ch 2
• Mathematics of Finance; Ch 3
• Differentiation; Ch 4
• Partial Differentiation; Ch 5
• Integration ; Ch 6

b) Basic Statistical Techniques

Required Reading

Newbold P, Carlson & Thorne B, Statistics For Economics and Business, Pearson Prentice Hall, 6th Edition.

Lecture Schedule

• Describing Data: Numerical Ch3
• Probability Ch 4
• Discrete Random Variables and Probability Distributions Ch 5
• Continuous Random Variables and Probability Distributions Ch6

Assessment

• Controlled Assessment
  A 1.5 hour written examination on the mathematics component in the first QT class after the Christmas recess will count for 10% of the total marks. This examination will be closely based on a take home ‘practice’ assignment.
• Take Home Assignment
  A spreadsheet based assignment on the statistics component, to be done over the Easter assignment and handed in on the first day of the QT lecture of the summer term will count for 10% of the total marks.
• Summer Examination
  A 3 hour examination on the whole of the QT course in June will count for 80% of the total marks.