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DEGREE REGULATIONS & PROGRAMMES OF STUDY 2013/2014
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DRPS : Course Catalogue : Business School : Common Courses (Management School)

Postgraduate Course: Investment Mathematics (CMSE11106)

Course Outline
SchoolBusiness School CollegeCollege of Humanities and Social Science
Course typeStandard AvailabilityAvailable to all students
Credit level (Normal year taken)SCQF Level 11 (Postgraduate) Credits15
Home subject areaCommon Courses (Management School) Other subject areaNone
Course website None Taught in Gaelic?No
Course descriptionThe course is concerned with the mathematics relating to financial investment in equities, bonds, options and other securities. Discussion of academic theory is combined with an emphasis on practical application. The intention is to equip students with a grounding in the mathematical concepts and tools which will help them cope in the increasingly sophisticated financial markets. The course will be suitable for students without a background in investment mathematics. Further reading will be provided for those with prior knowledge of the subject.

The first three weeks of the course concentrate mainly on a deterministic approach to the fundamental valuation and analysis of basic investments from a mathematical viewpoint, relying heavily on compound interest techniques. A number of more advanced specialist mathematical topics in investment are then discussed in subsequent weeks including mean-variance portfolio theory, asset pricing models, stochastic modelling and option pricing models.

Excel applications of the topics introduced will not be covered in the course but are briefly discussed in the required text Investment Mathematics. Those students wishing to implement the material using Excel are referred to the book Financial Modeling by Benninga (MIT Press, 2008).
Entry Requirements (not applicable to Visiting Students)
Pre-requisites Co-requisites
Prohibited Combinations Other requirements None
Additional Costs None
Information for Visiting Students
Pre-requisitesBusiness School Postgraduate Students Only
Displayed in Visiting Students Prospectus?No
Course Delivery Information
Not being delivered
Summary of Intended Learning Outcomes
KNOWLEDGE AND UNDERSTANDING
By the end of the course, students should have an understanding of the underlying mathematics relating to:

Building Block Skills
> Compound interest calculations
> Fixed-income bond analysis
> Index-linked bond analysis
> Equity valuation and duration
> Real estate valuation
> Measures of investment risk

Advanced Topics
> Mean-variance portfolio theory
> Asset pricing models
> Stochastic modelling
> Option pricing models

INTELLECTUAL SKILLS AND PERSONAL DEVELOPMENT

Cognitive Skills:
On completion of the course students should have demonstrated that they are able to:
* follow complex lines of argument
* show ability in mathematical reasoning

Key Skills:
On completion of the course students should be able to:
* demonstrate an ability to solve quantitative problems
* communicate effectively in tutorials
Assessment Information
There is a group assignment which counts for 30% of the total marks and a final two hour examination which counts for 70% of the total marks.
Special Arrangements
None
Additional Information
Academic description Not entered
Syllabus Not entered
Transferable skills Not entered
Reading list Not entered
Study Abroad Not entered
Study Pattern Not entered
KeywordsNot entered
Contacts
Course organiser Course secretaryMs Natalie Honeyman
Tel: (0131 6)51 1458
Email: Natalie.Honeyman@ed.ac.uk
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© Copyright 2013 The University of Edinburgh - 13 January 2014 3:45 am