Postgraduate Course: Finance, Risk and Uncertainty (MATH11088)
|School||School of Mathematics
||College||College of Science and Engineering
|Credit level (Normal year taken)||SCQF Level 11 (Postgraduate)
||Availability||Not available to visiting students
|Summary||This course is available only to students on the 'Financial Modelling and Optimization' and 'Financial Operational Research' Degree Programmes.
- Identify the main building blocks of modern finance theory;
- Use compounding and discounting to evaluate financial proposals;
- Determine the net present value and internal rate of return of investment proposals;
- Explain the merits of the net present value rule as an investment criteria;
- Appreciate the merits as well as the limitations of the internal rate of return as an investment criterion;
- Determine the cost of borrowing and evaluate financing proposals;
- Define and measure risk;
- Evaluate the risk of investment and securities;
- Construct portfolios to reduce risk exposure;
- Differentiate between efficient and inefficient portfolios;
- Develop the capital asset pricing model;
- Explain and critically evaluate capital market theory;
- Understand the role of beta as a measure of risk;
- Undertake the evaluation of capital budget proposals;
- Derive the implications of the capital asset pricing model for security analysis and corporate financial management;
- Explore the behaviour of the prices of financial assets and returns in competitive capital markets;
- Critically appraise the efficiency of the capital market;
Entry Requirements (not applicable to Visiting Students)
||Other requirements|| MSc Financial Modelling and Optimization and MSc Financial Operational Research students only.
Course Delivery Information
|Academic year 2020/21, Not available to visiting students (SS1)
|Learning and Teaching activities (Further Info)
Lecture Hours 30,
Summative Assessment Hours 2,
Programme Level Learning and Teaching Hours 2,
Directed Learning and Independent Learning Hours
|Assessment (Further Info)
||Hours & Minutes
|Main Exam Diet S2 (April/May)||MSc Finance, Risk and Uncertainty||2:00|
On completion of this course, the student will be able to:
- Demonstrate skills in structuring and taking decisions.
- Appreciate the need to evaluate decision criteria in relation to the objectives of the decision.
- Construct and manipulate mathematical models.
- Demonstrate an appreciation of the role of abstract reasoning in understanding and approaching practical problems.
- Assess and test theories and hypotheses on the basis of empirical evidence.
|Graduate Attributes and Skills
||MSc Financial Modelling and Optimization and MSc Financial Operational Research students only.
|Course organiser||Dr David Siska
Tel: (0131 6)51 9091
|Course secretary||Miss Gemma Aitchison
Tel: (0131 6)50 9268