Mathematics for Finance

Overview

Asset Pricing – valuation of bonds and stocks.
Calculus - differentiation; partial differentiation; integration.
Matrices - basic matrix operations; matrix inversion; Cramer's rule.

Learning Objectives

Upon successful completion of this module, students will be able to solve financial and economic problems relating to asset pricing, regressions, calculus and matrices.

Skills

Students will develop the following skills:
• Evaluate investments;
• Apply calculus and optimisation;
• Perform matrix calculations;
• Use the Bloomberg database to access financial data

Assessment

Students must achieve an overall mark of 40% in the module to pass