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.


67%: Lecture
33%: Practical (Workshop)


25%: Coursework (Take away paper)
75%: Examination (Take away paper)

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.

We regularly review our modules to incorporate student feedback, staff expertise, as well as the latest research and teaching methodology. We’re planning to run these modules in the academic year 2021/22. However, there may be changes to these modules in response to COVID-19, staff availability, student demand or updates to our curriculum. We’ll make sure to let our applicants know of material changes to modules at the earliest opportunity.