COURSE INTRODUCTION AND APPLICATION INFORMATION

Course Name
Quantitative Methods in Finance
Code
Semester
Theory
(hour/week)
Application/Lab
(hour/week)
Local Credits
ECTS
FIN 504
Fall
3
0
3
5
Prerequisites
None
Course Language
English
Course Type
Required
Course Level
Second Cycle
Mode of Delivery -
Teaching Methods and Techniques of the Course
Course Coordinator
Course Lecturer(s)
Assistant(s) -
Course Objectives The aim of this lecture is to provide students with an understanding of the quantitative methods for finance and investment. This includes the ability to formulate problems into quantitative models, to aid the successful resolution of the problem. Using output from mathematical and statistical models, students will learn to analyze, interpret and derive potential outcomes from quantitative information.
Learning Outcomes The students who succeeded in this course;
  • will be able to formulate problems into quantitative models.
  • will be able to demonstrate competency in numeric skills.
  • will be able to apply statistical methods to analyse past data and infer future trends.
  • will be able to derive outcomes.
  • will be able to analyse and interpret output from mathematical and statistical models.
  • will be able to select appropriate mathematical and statistical techniques for application to problems in the contexts of finance and investment.
Course Description This lecture guides the students through a wide array of mathematics, ranging from elementary basic mathematics, limit, derivative and integral, linear algebra and differential calculus to optimization and linear regression. These quantitative methods are illustrated with a rich and captivating assortment of applications to the analysis of portfolios, derivatives, exchange, fixed income securities and equities.
Related Sustainable Development Goals

 



Course Category

 Core Courses
X
Major Area Courses
Supportive Courses
Media and Managment Skills Courses
Transferable Skill Courses

 

WEEKLY SUBJECTS AND RELATED PREPARATION STUDIES

Week Subjects Required Materials
1 Introduction and Overview: The Importance of Mathematics in Finance
2 A Review of Elementary Mathematics: Functions and Operations John L. Teall and Iftekhar Hasan, “Quantitative Methods for Finance and Investments, 2002: 723
3 Cont:. A Review of Elementary Mathematics: Functions and Operations John L. Teall and Iftekhar Hasan, “Quantitative Methods for Finance and Investments, 2002: 723
4 A Review of Elementary Mathematics: Algebra and Solving Equations John L. Teall and Iftekhar Hasan, “Quantitative Methods for Finance and Investments, 2002: 2548
5 The Time Value of Money John L. Teall and Iftekhar Hasan, “Quantitative Methods for Finance and Investments, 2002: 2548
6 Optimization (Unconstrained and Constrained Optimization) Alpha C., Chiang, Fundamental methods of mathematical economics, 2003: 7598
7 A Review of Statistics Alpha C., Chiang, Fundamental methods of mathematical economics, 2003: 4585
8 Return, Risk and Covariance John L. Teall and Iftekhar Hasan, “Quantitative Methods for Finance and Investments, 2002: 7999
9 Midterm
10 Elementary Portfolio Mathematics John L. Teall and Iftekhar Hasan, “Quantitative Methods for Finance and Investments, 2002: 103113
11 Cont: Elementary Portfolio Mathematics John L. Teall and Iftekhar Hasan, “Quantitative Methods for Finance and Investments, 2002: 103113
12 Elements of Matrix Mathematics John L. Teall and Iftekhar Hasan, “Quantitative Methods for Finance and Investments, 2002: 115142
13 Elements of Matrix Mathematics John L. Teall and Iftekhar Hasan, “Quantitative Methods for Finance and Investments, 2002: 115142
14 Differential Calculus John L. Teall and Iftekhar Hasan, “Quantitative Methods for Finance and Investments, 2002: 145178
15 Integral Calculus John L. Teall and Iftekhar Hasan, “Quantitative Methods for Finance and Investments, 2002: 180199
16 Review of the Semester  
Course Notes/Textbooks Yukarıda belirtilen kitap bölümleri, ders notları
Suggested Readings/Materials James H. Stock and Mark W. Watson, Introduction to Econometrics, Pearson Education, 2003.Marek, Capiński, Mathematics for finance: an introduction to financial engineering, Springer, 2003.Alpha C., Chiang, Fundamental methods of mathematical economics, Auckland : McGrawHill, 1983, 3rd edition.

 

EVALUATION SYSTEM

Semester Activities Number Weigthing
Participation
Laboratory / Application
Field Work
Quizzes / Studio Critiques
Portfolio
Homework / Assignments
Presentation / Jury
Project
2
100
Seminar / Workshop
Oral Exam
Midterm
Final Exam
Total

Weighting of Semester Activities on the Final Grade
100
Weighting of End-of-Semester Activities on the Final Grade
Total

ECTS / WORKLOAD TABLE

Semester Activities Number Duration (Hours) Workload
Course Hours
(Including exam week: 16 x total hours)
16
3
48
Laboratory / Application Hours
(Including exam week: 16 x total hours)
16
Study Hours Out of Class
0
Field Work
Quizzes / Studio Critiques
Portfolio
Homework / Assignments
Presentation / Jury
Project
2
51
Seminar / Workshop
Oral Exam
Midterms
Final Exams
    Total
150

 

COURSE LEARNING OUTCOMES AND PROGRAM QUALIFICATIONS RELATIONSHIP

#
 Program Competencies/Outcomes
* Contribution Level
1
2
3
4
5
1

To be able to contribute to the science by improving the knowledge in the field with a level of sufficient expertise based on the qualifications of the master degree.

 X
2

To be able to identify, analyze and interpret the oriented problems of the financial science and the business world.

 X
3

To be able to develop a unique idea, method or application in the field of finance.

 X
4

To be able to transform knowledge in the field to an academic research by mastering existing theory and research in its field.

 X
5

To be able to gain effective communication skills that enables to express the original research results and opinions in the field of finance at scientific meetings and/or within the expert community.

 X
6

To be able to use the results of scientific studies conducted in the field, in relevant refereed journals while publicising them or presenting them in scientific meetings while disseminating knowledge gained.

 X
7

To be able to analyze and resolve national and international developments and its influences on markets with an interdisciplinary perspective.

 X
8

To be able to conduct independent research.

 X
9

To be able to demonstrate ethical values ​​in the stages of collection, interpretation, dissemination and application of data related to finance field.

 X
10

To be able to prepare an original thesis / term project in accordance with the criteria related to the field of finance.
11 
To be able to use a foreign language to follow information about the field of finance and participate in discussions in academic environments.

*1 Lowest, 2 Low, 3 Average, 4 High, 5 Highest