Undergraduate Course: Research Methods in Finance 1 (BUST08049)
||College||College of Arts, Humanities and Social Sciences
|Credit level (Normal year taken)||SCQF Level 8 (Year 2 Undergraduate)
||Availability||Not available to visiting students
|Summary||The course is only open to Year 2 students in the following degree programmes:
MA Accounting and Finance
MA Finance and Business
This course introduces students to an array of topics in probability and statistics that are applied to problems in finance. Combined with Research Methods in Finance 2, it provides students with the skill set required to conduct quantitative empirical research in Finance.
This course introduces students to an array of topics in probability and statistics that are applied to problems in finance.
Course content includes:
- Basic data analysis, measures of location and spread, graphical representation of data, multivariate variables and distributions.
- Probability theory, discrete and continuous probability distributions, joint and conditional probability.
- Point estimators, confidence interval, hypothesis testing.
- Regression analysis, estimates and diagnostics for multivariate linear regression analysis, designing and building a multivariate linear regression model.
You will learn by engaging with assigned readings/video recordings and solving small weekly exercises. You are expected to actively participate in class by completing your assigned works before class time, asking/answering questions, and engaging in class discussions. The individual assignment allows you to use knowledge and experience gained from engagement with class materials on real-world financial data.
Course Delivery Information
|Academic year 2022/23, Not available to visiting students (SS1)
|Learning and Teaching activities (Further Info)
Lecture Hours 20,
Feedback/Feedforward Hours 2,
Formative Assessment Hours 2,
Programme Level Learning and Teaching Hours 4,
Directed Learning and Independent Learning Hours
|Assessment (Further Info)
|Additional Information (Assessment)
||Written Exam 80 % Coursework 20 %,
Written Exam [80%]
Coursework will comprise small individual assignments (weekly in weeks 5-9). These can be MCQs and/or short-answer questions that link to weekly seminars and computer lab sessions. [20%]
||Formative feedback is provided through solutions to exercises and discussions in seminars. You are expected to ask/answer questions and engage in seminar discussions.
Summative feedback is provided for the 5 small individual assignments and as written feedback for the individual project report.
||Hours & Minutes
|Main Exam Diet S1 (December)||2:00|
On completion of this course, the student will be able to:
- Understand and explain basic concepts in statistics and econometrics.
- Use a statistical software and statistical techniques to analyze financial data
- Understand and critically discuss results from statistical analyses, including the limitations of the statistical techniques employed.
|Rachev, S. T., Hochstotter, M., Fabozzi, F. J., and Focardi, S. M. (2010). Probability and Statistics for Finance. Hoboken, NJ: John Wiley & Sons. ISBN 978-0-470-40093-7 (cloth); 978-0-470-90630-9 (ebk); 978-0-470-90631-6 (ebk); 978-0-470-90632-3 (ebk)|
|Graduate Attributes and Skills
||Development of Ethical, Responsible and Sustainable Business Behaviour
Appropriate Communication: assessed
Understand and Make Effective Use of Data: assessed
Intellectual Curiosity: assessed
|Course organiser||Mr Ben Sila
|Course secretary||Miss Aoife McDonald
Tel: (0131 6)50 8074