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Overview

The module covers quantitative techniques that are applicable in a wide variety of Financial and Economic contexts: the time-value of money, including future values of capital sums and savings plans, present values of capital sums and annuities, and compound interest; investment appraisal, including Net Present Value (NPV) and Internal Rate of Return (IRR); investment risk and return; gradients and introduction to differentiation; price elasticity and firm production functions; second derivatives and optimization problems. In addition, the module provides an overview of exchange traded securities (including equities, or ‘stocks’), and the trading simulation component will introduce the application of key financial techniques in the context of securities trading. This will involve real-time trading of securities in a virtual portfolio using the Stocktrak simulation software.

Assessment Strategy

Excellent A- to A+ (70%+) Outstanding performance. The relevant information accurately deployed. Excellent grasp of theoretical/conceptual/practice elements. Good integration of theory/practice/information in pursuit of the assessed work's objectives. Strong evidence of the use of creative and reflective skills.

Very good B- to B+ (60-69%) Very good performance. Most of the relevant information accurately deployed. Good grasp of theoretical/conceptual/practical elements. Good integration of theory/practice/information in pursuit of the assessed work's objectives. Evidence of the use of creative and reflective skills.

Good C- to C+ (50-59%) Much of the relevant information and skills mostly accurately deployed. Adequate grasp of theoretical/conceptual/practical elements. Fair integration of theory/practice/information in the pursuit of the assessed work's objectives. Some evidence of the use of creative and reflective skills.

Threshold D- to D+ (40-49%) No major omissions or inaccuracies in the deployment of information/skills. Some grasp of theoretical/conceptual/practical elements. Integration of theory/practice/information present intermittently in pursuit of the assessed work's objectives.

Learning Outcomes

• Distinguish techniques for investing in exchange-traded securities.

• Identify how to manipulate algebraic equations, differentiate and solve optimization problems.

• Recognise and apply financial mathematics techniques to value cash flows that take place over time.

• Review how all techniques may be applied to business, economics and finance problems involving cash flows such as revenues, costs, profit and interest.