Postgraduate Course: Finance, Risk and Uncertainty (MATH11088)
Course Outline
| 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 |
| SCQF Credits | 10 |
ECTS Credits | 5 |
| Summary | - 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; |
| Course description |
Not entered
|
Entry Requirements (not applicable to Visiting Students)
| Pre-requisites |
Students MUST have passed:
Probability (MATH08066)
|
Co-requisites | |
| Prohibited Combinations | |
Other requirements | Note that PGT students on School of Mathematics MSc programmes are not required to have taken pre-requisite courses, but they are advised to check that they have studied the material covered in the syllabus of each pre-requisite course before enrolling. |
Course Delivery Information
|
| Academic year 2024/25, Not available to visiting students (SS1)
|
Quota: None |
| Course Start |
Semester 1 |
Timetable |
Timetable |
| Learning and Teaching activities (Further Info) |
Total Hours:
100
(
Lecture Hours 30,
Summative Assessment Hours 2,
Programme Level Learning and Teaching Hours 2,
Directed Learning and Independent Learning Hours
66 )
|
| Assessment (Further Info) |
Written Exam
50 %,
Coursework
50 %,
Practical Exam
0 %
|
| Additional Information (Assessment) |
50% Coursework, 50% Examination |
| Feedback |
Not entered |
| Exam Information |
| Exam Diet |
Paper Name |
Hours & Minutes |
|
| Main Exam Diet S2 (April/May) | MSc Finance, Risk and Uncertainty | 1:30 | |
Learning Outcomes
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.
|
Additional Information
| Graduate Attributes and Skills |
Not entered |
| Study Abroad |
Not Applicable |
| Additional Class Delivery Information |
This course is delivered by an External Lecturer and not Jiawei Li |
| Keywords | FRU |
Contacts
| Course organiser | Dr Jiawei Li
Tel: (0131 6)50 5043
Email: jiawei.li@ed.ac.uk |
Course secretary | Miss Gemma Aitchison
Tel: (0131 6)50 9268
Email: Gemma.Aitchison@ed.ac.uk |
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