FIN201 Quantitative Applications in Finance

This subject focuses on the underpinning quantitative concepts and techniques required in today’s financial markets to interpret and forecast financial data. This firstly includes discussion of fundamental statistical concepts with specific reference to their financial application, and then explores hypothesis testing, linear regression and time-series analysis. It utilises these quantitative tools to assess elements in finance such as risk and return, asset pricing and portfolio construction.

Using the key data analysis and modelling techniques covered, students interpret various types of financial information, including economic, business and investment performance data, in order to develop practical quantitative strategies that may be applied in industry. Students also read and critique articles in financial journals, including validating methodologies and conclusions.

For more information, please refer to the subject outline.

For Study Period 5 2021 onwards, please refer to the subject outline here.

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

      1. Examine the various quantitative techniques used to describe, estimate and evaluate data
      2. Evaluate the strengths and limitations of statistical analysis techniques in finance
      3. Apply quantitative techniques to describe financial data and test claims of performance
      4. Analyse the factors that influence the risk and return of asset classes and financial securities
      5. Assess statistical models used in estimating the value of financial assets and constructing efficient portfolios

       

      For Study Period 5 2021 onwards

      On successful completion of this subject, individuals should be able to:

      1. Examine and apply the various quantitative techniques used to describe, estimate and evaluate data and interpret the results
      2. Conduct independent research and evaluate the strengths and limitations of statistical analysis techniques in finance
      3. Apply quantitative techniques to describe financial data and test claims of performance
      4. Analyse the factors that influence the risk and return of asset classes and financial securities
      5. Assess and interpret the results from statistical models used in estimating the value of financial assets and constructing efficient portfolios
      6. Apply spreadsheet applications to perform statistical analysis.
  • 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

  • Duration
    • The duration of this subject is one study period (12 weeks).

  • Assessment
    • Assessment Type Assessed Weighting
      Examination Week 6 50%
      Assignment Week 12 50%

      For Study Period 5 2021 onwards

      Assessment Type Assessed Weighting
      Task Week 4 20%
      Examination Week 6 40%
      Assignment Week 12 40%

      Click here for an assessment timetable.

  • Prerequisites
    • There are no prerequisites for this subject. However, individuals should review the ‘Assumed Knowledge’ tab to understand the prior knowledge Kaplan advises they should hold before enrolling in this subject.

  • Assumed knowledge
    • Whilst there are no prerequisites for this subject, Kaplan assumes that individuals have completed FIN101 Financial Markets and Economic Principles, FIN102 Regulation Ethics and Risk Management, and FIN103 Financial Analysis and Valuation, or understand the content covered in those subjects, prior to undertaking FIN201 Quantitative Applications in Finance.

  • Course transition subject equivalence
    • Individuals may not be required to complete this subject if they have transitioned from a SIA/Finsia/Kaplan course and have completed the following subjects:

      • 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.

       

      From Study Period 5 2021 onwards

      There is no prescribed text for this subject. Individuals are provided with key readings and access to Kaplan’s online databases. Individuals are encouraged to research and read widely on the topic.