Unit name | Financial Risk Management |
---|---|
Unit code | MATH30014 |
Credit points | 20 |
Level of study | H/6 |
Teaching block(s) |
Teaching Block 1 (weeks 1 - 12) |
Unit director | Dr. Jonty Rougier |
Open unit status | Not open |
Pre-requisites |
Calculus 1 (MATH11007), Linear Algebra & Geometry (MATH11005), Analysis 1A (MATH10003), Analysis 1B (MATH10006), Probability 1 (MATH11300), Statistics 1 (MATH11400) |
Co-requisites |
None |
School/department | School of Mathematics |
Faculty | Faculty of Science |
Unit Aims
To explore the theory and practice of financial risk management in a variety of common settings, including the casino, sports betting, business, and financial markets.
Unit Description
The unit covers the theory of uncertainty assessment, choice under uncertainty, and risk management (see the Learning Objectives below), and illustrates with many practical examples, often involving computing in R. Familiarity with R is not required for the unit, but if you are thinking about a job in finance or data science then you should be aiming to be proficient in R or Python by the time you graduate.
If you are thinking about taking this unit, please note the following. Many people find uncertainty and risk unintuitive, and therefore clarity and effective communication are crucial. If you are uncomfortable writing descriptive text in well-structured sentences, then you should choose a different unit. You will be expected to explore more qualitative aspects of human capacity and desires, as a necessary part of understanding the practice of risk management.
At the end of this unit you should be able to:
Lectures, regular formative problem sheets and office hours
100% examination (2.5 hours)
Raw scores on the examinations will be determined according to the marking scheme written on the examination paper. The marking scheme, indicating the maximum score per question, is a guide to the relative weighting of the questions. Raw scores are moderated as described in the Undergraduate Handbook.
Recommended:
John S. Hammond, Ralph L. Keeney, and Howard Raiffa, Smart Choices: A Practical Guide to making Better Decisions, Harvard Business School Press, 1999.
Dennis V. Lindley, Understanding Uncertainty, revised edition, John Wiley & Sons, 2014.