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FIN201 Quantitative Applications in Finance

This subject explores the essential quantitative skills required in today’s financial markets. It covers key techniques and concepts applicable to the financial services industry, including data analysis, correlation, regression, risk and return factor analysis, portfolio construction and optimization, measurement and factor attribution. It compares and contrasts a number of techniques and models, evaluating their strengths and limitations.

This subject is a compulsory subject for the Master of Applied Finance qualification.

This is a compulsory subject in the investment management and financial analysis majors.

For more information, please refer to the subject outline.

  • Learning outcomes
    • On successful completion of this subject you should be able to:

      1. Evaluate the strengths and limitations of quantitative analysis techniques.
      2. Evaluate claims of performance for financial products.
      3. Explain the relationship and independence of factors influencing financial diversity, performance and volatility.
      4. Analyse the risks associated with financial products using statistical techniques.
      5. Analyse returns and financial performance, recognising the strengths and limitations of various techniques.
      6. Optimise the construction of a portfolio.
  • Subject content
    • Topic Title
      Topic 1 Fundamentals of quantitative analysis
      Topic 2 Probability distributions
      Topic 3 Sampling and estimation
      Topic 4 Hypothesis testing
      Topic 5 Correlation, covariance and causation
      Topic 6 Regression
      Topic 7 Time-series analysis
      Topic 8 Risk and return
      Topic 9 Asset pricing models
      Topic 10 Optimisation and portfolio construction

  • Assessment
  • Prerequisites
    • Students enrolling in this subject are assumed to have the pre-requisite knowledge in the three core subjects (FIN101, FIN102, FIN103).

  • Course transition subject equivalence
    • Students who transition from a SIA/Finsia/Kaplan course and have completed the following subject within the course completion time frame may not also complete this subject:

      • FIN236 Quantitative Applications in Finance
      • M01 Quantitative Applications in Finance
  • Reading list
    • Prescribed text

      • Berenson, ML, Levine, DM, Szabat, K, Stephan, DF, O’Brien, M, Watson, J & Jayne, N 2016, Basic business statistics, 4th edn, Pearson Australia, Frenchs Forest, NSW.

      Retailers of educational books include Co-op Bookshop and Boffins Bookshop. Texts can also be borrowed from the Kaplan library or other libraries. Details of required and further reading are provided in the subject room.  Purchase of any text other than a prescribed text is not required.