Module Code: |
H8STATMF |
Long Title
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Statistical Methods for Finance
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Title
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Statistical Methods for Finance
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Module Level: |
LEVEL 8 |
EQF Level: |
6 |
EHEA Level: |
First Cycle |
Module Author: |
DAVE CORMACK |
Specifications of the qualifications and experience required of staff |
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Learning Outcomes |
On successful completion of this module the learner will be able to: |
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Learning Outcome Description |
LO1 |
Apply statistical principles, theories and methods and appreciate how they apply in a range of business decision making situations |
LO2 |
Recognise and evaluate different types of data and their appropriateness in a range of scenarios |
LO3 |
Graphically tabulate, summarise and present information in a useful and informative manner suitable for presentation to senior management teams |
LO4 |
Identify and defend the appropriate measures of central tendency and dispersion in order to describe a data set |
LO5 |
Describe key probability concepts and their application within real world context |
LO6 |
Select and apply probability distributions to utilise within various scenarios and compute probabilities based on practical situations using the, Normal and Binomial distributions |
LO7 |
Define a sampling distribution of the sample mean and apply the Central Limit theorem in the development of inferences about the population |
LO8 |
Synthesise, evaluate and interpret relationships between two variables through the use of correlation and regression analysis |
Dependencies |
Module Recommendations
This is prior learning (or a practical skill) that is required before enrolment on this module. While the prior learning is expressed as named NCI module(s) it also allows for learning (in another module or modules) which is equivalent to the learning specified in the named module(s).
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No recommendations listed |
Co-requisite Modules
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No Co-requisite modules listed |
Module Content & Assessment
Indicative Content |
The Role of Statistics in Finance (Week 1)
• Definition and Role of Statistics
• Descriptive versus Inferential Statistics
• Primary and Secondary Data
• Scales of Measurement
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Describing Data: Frequency Tables & Graphics (Week 2-3)
• Frequency Data & Frequency Tables
• Graphical Representation of Data:
o Bar Charts
o Pie Charts
o Stem and Leaf Plots
o Histograms
o Scatter Plots
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Describing Data: Measures of Central Tendency (Week 4)
• Mean: Arithmetic versus Geometric
• Mode
• Median
• Calculating the mean of a portfolio
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Describing Data: Measures of Dispersion (Week 5-6)
• Range
• Mean Absolute Deviation
• Variance & Standard Deviation
• Skewness
• Kurtosis
• Calculating the variance and standard deviation of a two stock portfolio
• Relationship between risk and return
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Probability (Week 7-8)
• The role of probability in financial markets
• Approaches to assigning probability
• Addition and Multiplication Rule
• Conditional Probability: Bayes Theorem, Probability Trees
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Probability Distributions (Week 9)
• Normal distribution
• Binomial Distribution
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Collecting Data (Week 10-12)
• Sampling Methods
• Sampling Error
• Sampling Distribution of the Sample Mean
• Central Limit Theorem
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Correlation & Regression (Week 13)
• Correlation Coefficient
• Calculating the covariance and correlation between two securities
• Coefficient of Determination
• Introduction to Regression Analysis
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Assessment Breakdown | % |
Coursework | 100.00% |
AssessmentsFull Time
Coursework |
Assessment Type: |
Project |
% of total: |
50 |
Assessment Date: |
n/a |
Outcome addressed: |
1,2,3,4,8 |
Non-Marked: |
No |
Assessment Description: Learners will be presented with a financial or economic data set and/or case study. Learners will be expected to summarise the data graphically and statistically and must undertake a number of prescribed tests on the data. A number of questions will be presented to the learner and they will be expected to evaluate, combine and synthesise the information and develop and present a detailed report of the findings. Students will be required to undertake a formal presentation defending their findings. The written submission will be worth 40% and the presentation |
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Assessment Type: |
Assignment |
% of total: |
50 |
Assessment Date: |
n/a |
Outcome addressed: |
5,6,7,8 |
Non-Marked: |
No |
Assessment Description: Learners will be given two in class assessments worth 25% each which will address four key aspects of the module curriculum: probability, probability distributions, collecting data and correlation and regression. The in class assessments may include a mix of: short answer questions, multiple choice, vignettes and or problem based questions. All questions presented to students will be within the context of financial services and its attendant fields. Continuous Assessment 1 will assess LO5 and LO6. Continuous Assessment 2 will assess LO7 and LO8 |
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No End of Module Assessment |
NCIRL reserves the right to alter the nature and timings of assessment
Module Workload
Module Target Workload Hours 0 Hours |
Workload: Full Time |
Workload Type |
Workload Description |
Hours |
Frequency |
Average Weekly Learner Workload |
Lab |
No Description |
4 |
Every Week |
4.00 |
Independent Learning Time |
No Description |
198 |
Once per semester |
16.50 |
Total Weekly Contact Hours |
4.00 |
Workload: Part Time |
Workload Type |
Workload Description |
Hours |
Frequency |
Average Weekly Learner Workload |
Lab |
No Description |
4 |
Every Week |
4.00 |
Independent Learning Time |
No Description |
198 |
Once per semester |
16.50 |
Total Weekly Contact Hours |
4.00 |
Module Resources
Recommended Book Resources |
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Lind D.A., Marchal W.G., and Wathen S.A.. (2010), Statistical Techniques in Business and Economics, 14th, 14th International. McGraw Hill.
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Koop G.,. (2006), Analysis of Financial Date, Wiley.
| Supplementary Book Resources |
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De Fusco R.A., Pinto J.E., Runkle D.E., and McLeavey D.W. (2007), Quantitative Methods for Investment Analysis, Wiley (CFA Institute).
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Newbold, P., Carlson, W., Thorne, B. (2009), Statistics for Business and Economics, 7th. Pearson.
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Alexander, C.. (2008), Market Risk Analysis Quantitative Methods in Finance, Wiley.
| This module does not have any article/paper resources |
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Other Resources |
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[Website], http://epp.eurostat.ec.europa.eu/.
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[Website], http://www.ecb.int/home/html/index.en.ht
ml.
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[Website], www.cso.ie.
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[Website], www.bloomberg.com.
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[Website], www.reuters.com.
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