Postgraduate Course: Quantitative Techniques for Finance II (CMSE11675)
Course Outline
| School | Business School |
College | College of Arts, Humanities and Social Sciences |
| Credit level (Normal year taken) | SCQF Level 11 (Postgraduate) |
Availability | Not available to visiting students |
| SCQF Credits | 20 |
ECTS Credits | 10 |
| Summary | The course builds on Quantitative Methods in Finance I and provides an introduction to some econometric techniques commonly-used in financial data analysis. The first part of the course provides a deeper treatment of Ordinary Least Squares and its assumptions. The second part of the course covers various statistical techniques through their applications in contemporary finance research. |
| Course description |
This course introduces some practical econometrics tools for data analysis in finance. Students will learn how to apply a number of classical empirical methods in finance by replicating research based on selected studies in finance. Through coursework assessment, students will learn how to present empirical results through report writing and informative graphs/tables. Analytical and critical thinking skills obtained through this course are particularly relevant for those wishing to pursue a career in the finance industry.
Outline content
Descriptive Statistics, multiple regression analysis, ordinary least squares, statistical inference, dummy variables, interaction terms, heteroskedasticity and autocorrelation in the error term, panel data, event study, and basic asset pricing tests.
Student learning experience
The tutorials will be a combination of theoretical exercises and computer based problems. Support sessions will also be available to help students keep track of their progress on their assessment.
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Entry Requirements (not applicable to Visiting Students)
| Pre-requisites |
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Co-requisites | |
| Prohibited Combinations | |
Other requirements | This course is for students enrolled in MSc Finance & Investment and MSc Accounting & Financial Management |
Course Delivery Information
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| Academic year 2025/26, Not available to visiting students (SS1)
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Quota: None |
| Course Start |
Semester 2 |
Timetable |
Timetable |
| Learning and Teaching activities (Further Info) |
Total Hours:
200
(
Lecture Hours 20,
Seminar/Tutorial Hours 10,
Programme Level Learning and Teaching Hours 4,
Directed Learning and Independent Learning Hours
166 )
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| Assessment (Further Info) |
Written Exam
50 %,
Coursework
50 %,
Practical Exam
0 %
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| Additional Information (Assessment) |
50% Class test (Individual) - Assesses course Learning Outcomes 1,2,3
50% Essay (Individual) - Assesses all course Learning Outcomes |
| Feedback |
Formative: Students are encouraged to ask questions in lectures and tutorials. Students can get early feedback on their performance by engaging with tutorial questions. Students can also use their performance in the mid-term exam to assess their understanding.
Summative: Feedback will be provided on assessment within agreed deadlines. |
| No Exam Information |
Learning Outcomes
On completion of this course, the student will be able to:
- Present and critically interpret the results of statistical and econometric analysis of data.
- Understand and critically discuss some commonly used research methods in finance.
- Critically discuss important areas of current empirical research in finance.
- Set up a research question, develop and test hypotheses using real-world data.
- Use evidence to assess the validity of theory and critically evaluate competing theoretical explanations.
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Reading List
Wooldridge, J. (2015), Introductory Econometrics: A Modern Approach, 6th edition, Thomson.
Douglas A. Lind, William G Marchal, Samuel A. Wathen (2012), Statistical Techniques in Business and Economics, 15th Edition, McGraw-Hill ISBN: 9780073401805
McClave, J. T., Benson, P. G., & Sincich, T. (2021). Statistics for Business and Economics (14th ed.). Pearson.
Lind, D. A., Marchal, W. G., & Wathen, S. A. (2021). Basic Statistics for Business and Economics (10th ed.). McGraw-Hill Education.
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Additional Information
| Graduate Attributes and Skills |
Practice: Applied Knowledge, Skills and Understanding
After completing this course, students should be able to:
Work with a variety of organisations, their stakeholders, and the communities they serve - learning from them, and aiding them to achieve responsible, sustainable and enterprising solutions to complex problems.
Communication, ICT, and Numeracy Skills
After completing this course, students should be able to:
Convey meaning and message through a wide range of communication tools, including digital technology and social media; to understand how to use these tools to communicate in ways that sustain positive and responsible relationships.
Critically evaluate and present digital and other sources, research methods, data and information; discern their limitations, accuracy, validity, reliability and suitability; and apply responsibly in a wide variety of organisational contexts.
Cognitive Skills
After completing this course, students should be able to:
Be self-motivated; curious; show initiative; set, achieve and surpass goals; as well as demonstrating adaptability, capable of handling complexity and ambiguity, with a willingness to learn; as well as being able to demonstrate the use digital and other tools to carry out tasks effectively, productively, and with attention to quality.
Knowledge and Understanding
After completing this course, students should be able to:
Demonstrate a thorough knowledge and understanding of contemporary organisational disciplines; comprehend the role of business within the contemporary world; and critically evaluate and synthesise primary and secondary research and sources of evidence in order to make, and present, well informed and transparent organisation-related decisions, which have a positive global impact.
Identify, define and analyse theoretical and applied business and management problems, and develop approaches, informed by an understanding of appropriate quantitative and/or qualitative techniques, to explore and solve them responsibly.
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| Keywords | Not entered |
Contacts
| Course organiser | Dr Angelica Gonzalez
Tel: (0131 6)51 3027
Email: angelica.gonzalez@ed.ac.uk |
Course secretary | |
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