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.

Teaching and assessment

We’re currently reviewing teaching and assessment of our modules in light of the COVID-19 situation. We’ll publish the latest information as soon as possible.

Contact hours and workload

This module is approximately 150 hours of work. This breaks down into about 32 hours of contact time and about 118 hours of independent study. The University may make minor variations to the contact hours for operational reasons, including timetabling requirements.

This module is running in the academic year 2021/22. We also plan to offer it in future academic years. However, we are constantly looking to improve and enhance our courses. There may be changes to modules in response to student demand or feedback, changes to staff expertise or updates to our curriculum. We may also need to make changes in response to COVID-19. We’ll make sure to let our applicants know of material changes to modules at the earliest opportunity.


This module is offered on the following courses: