Last modified: 20 Jun 2025 15:10
This course introduces the statistical and mathematical tools needed to understand empirical research in Finance. Lectures provide the theoretical underpinnings of estimation and statistical inference of models commonly used in financial econometric research. Students will have the opportunity to take the methods to the data in guided computer workshops.
| Study Type | Undergraduate | Level | 3 |
|---|---|---|---|
| Term | First Term | Credit Points | 15 credits (7.5 ECTS credits) |
| Campus | Aberdeen | Sustained Study | No |
| Co-ordinators |
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This course rigorously introduces basic concepts of probability, estimation, and statistical inference with cross-sectional and panel data. The material will build on and deepen the understanding of the learning objectives from PO2508 Understanding Statistics. A main objective of the course is to provide students with fundamental knowledge to understand econometric methods which are commonly used in academic research articles and to apply these methods to research questions themselves.
To do so lectures will provide the theoretical underpinnings of various econometric methods. This includes principles of estimation, forecasting, and hypothesis testing. Tutorial sessions reinforce the lectures and computer workshop take the methods to the data. Applications focus on examples from Finance, such as arbitrage pricing theory, the capital asset pricing model, and value at risk.
Topic areas will include but not be limited to" to "may include but may not be limited to:
Information on contact teaching time is available from the course guide.
| Assessment Type | Summative | Weighting | 75 | |
|---|---|---|---|---|
| Assessment Weeks | Feedback Weeks | |||
| Feedback |
2-hour written exam (1,500 words), taking place during the December exam diet. Exam marks are usually released after January exam board. |
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| Knowledge Level | Thinking Skill | Outcome |
|---|---|---|
| Conceptual | Apply | Ability to apply theoretical financial concept in empirical research. |
| Conceptual | Understand | Knowledge of quantitative methods within the core areas of finance. |
| Assessment Type | Summative | Weighting | 25 | |
|---|---|---|---|---|
| Assessment Weeks | 13 | Feedback Weeks | 16 | |
| Feedback |
1,500-word Research Report. Individual feedback will be provided alongside generic class-based feedback within the lecture. |
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| Knowledge Level | Thinking Skill | Outcome |
|---|---|---|
| Conceptual | Apply | Ability to apply theoretical financial concept in empirical research. |
| Conceptual | Evaluate | Ability to assess the quality of a financial analysis. |
There are no assessments for this course.
| Assessment Type | Summative | Weighting | 100 | |
|---|---|---|---|---|
| Assessment Weeks | 50,51 | Feedback Weeks | ||
| Feedback |
2-hour Resit Exam. Resit marks are not released until the resit board takes place - this is usually August. |
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| Knowledge Level | Thinking Skill | Outcome |
|---|---|---|
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| Knowledge Level | Thinking Skill | Outcome |
|---|---|---|
| Conceptual | Understand | Knowledge of quantitative methods within the core areas of finance. |
| Conceptual | Apply | Ability to apply theoretical financial concept in empirical research. |
| Conceptual | Evaluate | Ability to assess the quality of a financial analysis. |
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