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DRPS : Course Catalogue : Business School : Business Studies

Undergraduate Course: Research Methods in Finance 1 (BUST08049)

Course Outline
SchoolBusiness School CollegeCollege of Arts, Humanities and Social Sciences
Credit level (Normal year taken)SCQF Level 8 (Year 2 Undergraduate) AvailabilityNot available to visiting students
SCQF Credits20 ECTS Credits10
SummaryThe 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.
Course description 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.

Entry Requirements (not applicable to Visiting Students)
Pre-requisites Students MUST have passed: Introduction to Financial Markets (BUST08029) AND Global Challenges for Business (BUST08035) AND The Business of Edinburgh (BUST08036)
Prohibited Combinations Students MUST NOT also be taking Business Research Methods I: Introduction to Data Analysis (BUST08033)
Other requirements None
Course Delivery Information
Academic year 2022/23, Not available to visiting students (SS1) Quota:  None
Course Start Semester 1
Timetable Timetable
Learning and Teaching activities (Further Info) Total Hours: 200 ( Lecture Hours 20, Feedback/Feedforward Hours 2, Formative Assessment Hours 2, Programme Level Learning and Teaching Hours 4, Directed Learning and Independent Learning Hours 172 )
Assessment (Further Info) Written Exam 80 %, Coursework 20 %, Practical Exam 0 %
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%]
Feedback 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.
Exam Information
Exam Diet Paper Name Hours & Minutes
Main Exam Diet S1 (December)2:00
Learning Outcomes
On completion of this course, the student will be able to:
  1. Understand and explain basic concepts in statistics and econometrics.
  2. Use a statistical software and statistical techniques to analyze financial data
  3. Understand and critically discuss results from statistical analyses, including the limitations of the statistical techniques employed.
Reading List
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)
Additional Information
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

KeywordsNot entered
Course organiserMr Ben Sila
Course secretaryMiss Aoife McDonald
Tel: (0131 6)50 8074
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