Course Title: Quantitative Methods in Finance

Part A: Course Overview

Course Title: Quantitative Methods in Finance

Credit Points: 12


Terms

Course Code

Campus

Career

School

Learning Mode

Teaching Period(s)

ECON1095

City Campus

Postgraduate

625H Economics, Finance and Marketing

Face-to-Face

Sem 1 2006,
Sem 2 2006,
Sem 1 2007,
Sem 2 2007,
Sem 1 2008,
Sem 2 2008,
Sem 1 2009,
Sem 2 2009,
Sem 1 2010,
Sem 2 2010,
Sem 1 2011,
Sem 2 2011,
Sem 1 2012,
Sem 2 2012,
Sem 1 2013,
Sem 2 2013,
Sem 1 2014,
Sem 2 2014,
Sem 1 2015,
Sem 2 2015,
Sem 1 2016,
Sem 2 2016,
Sem 1 2017,
Sem 2 2017

ECON1097

Malaysia Institute of Managemt

Postgraduate

625H Economics, Finance and Marketing

Face-to-Face

Offsh 1 09

ECON1098

Singapore Inst of Management

Postgraduate

625H Economics, Finance and Marketing

Face-to-Face

Offsh 4 11,
Offsh4 12

Course Coordinator: Associate Professor Ashton De Silva

Course Coordinator Phone: +61 3 9925 1313

Course Coordinator Email: ashton.desilva@rmit.edu.au


Pre-requisite Courses and Assumed Knowledge and Capabilities

None


Course Description

The aim of this course is to introduce you to the Quantitative techniques used in the key areas of Finance. Models such as the Markowitz Portfolio, Share Price Valuation, Bond Portfolio Management, Capital Market Theory and Derivative Pricing will be explored. EXCEL which has the quantitative modelling capabilities will be the standard software application used for all applied work.


Objectives/Learning Outcomes/Capability Development

`


On successful completion of this course you will be able to:

  1. Analyse a range of mathematical functions and use them to solve finance problems.
  2. Formulate and assess financial mathematics formulas.
  3. Apply Univariate and Multivariate Calculus to define marginal concepts, to describe the behaviour of optimising investors, to derive the CAPM and develop Bond Portfolio Management techniques.
  4. Describe the key concepts from probability theory to Statistical Inference and apply them to finance problems.
  5. Assess a range of special probability distributions such as the Normal, the Binomial and the Lognormal in Finance models.
  6. Use Matrix or Array commands to set up work-sheets for Finance mathematical models.
  7. Analyse and apply the concepts associated with Derivatives Pricing Models.


Overview of Learning Activities

Learning will occur through a variety of experiences which may include lectures, problem solving exercises, tutorial activities, problem based learning and laboratory workshops using Excel.


Overview of Learning Resources

Various learning resources are available online through myRMIT Studies\Blackboard. In addition to topic notes; assessment details and a study schedule you may also be provided with links to relevant online information; readings; audio and video clips and communication tools to facilitate collaboration with your peers and to share information.
Resources are also available online through RMIT Library databases and other facilities. If you require assistance with the RMIT library facilities contact the Business Liaison Librarian for your school. Contact details for Business Liaison Librarians are located online on the RMIT Library website.
Additional resources and/or sources to assist your learning will be identified by your course coordinator will be made available to you as required during the teaching period.


Overview of Assessment

The assessment alignment list below shows the assessment tasks against the learning outcomes they develop.

Assessment Task 1: 40%
Linked CLOs: 1, 2, 3, 4, 6

Assessment Task 2: 20%
Linked CLOs: 1, 2, 3, 5, 6

Final Examination: 40%
Linked CLOs: 1, 2, 3, 4, 5, 6, 7

Feedback will be provided throughout the semester in class and/or in online forums through individual and group feedback on practical exercises and by individual consultation.