Essential Quantitative Finance (761N1)

15 credits, Level 7 (Masters)

Autumn teaching

You study:

  • elementary concepts in probability and statistics and how these are applied to the random variables (such as asset returns) that are commonly encountered in financial problems
  • univariate sample statistics and how this leads on to probability distributions that are commonly used in finance, including the binomial, Poisson, normal and lognormal distributions
  • sampling distributions and how these are applied to simple inference relating to financial problems
  • sample and population covariance and correlation and how this leads on to the basic principles of simple linear regression and Ordinary Least Squares (OLS) estimation, the general linear model, hypothesis tests and model specification
  • omitted variables, and other causes of autocorrelation and heteroscedasticity in the context of applied financial problems.


69%: Lecture
31%: Practical (Workshop)


25%: Coursework (Test)
75%: Examination (Unseen examination)

Contact hours and workload

We’re currently reviewing contact hours for modules and will update with further information as soon as it is available.

This module is running in the academic year 2019/20. We also plan to offer it in future academic years. It may become unavailable due to staff availability, student demand or updates to our curriculum. We’ll make sure to let our applicants know of such changes to modules at the earliest opportunity.


This module is offered on the following courses: