The application of statistical and mathematical techniques to solve problems in finance. Topics include time series versus cross-sectional data, cross-sectional versus panel data, univariate time series modeling and forecasting, a white noise process, tests of non-nested hypotheses, Wold’s decomposition theorem, the moments of an autoregressive process, statistical versus economic or financial loss functions and selected topics in quantitative financial market analysis.

This course will cover determination of gross domestic product, consumption, investment, unemployment and price level. Analysis of interest rate, wage rate and inflation rate. Role of fiscal and monetary policy. Furthermore, this course will extend to international economy. Moreover, this course will cover theory of consumer choice and demand, estimation and forecasting demand, theory of production and cost, market structure, game theory, pricing theory, theory of demand and supply of factor market, general equilibrium and making decision under risk and uncertainty.

Concepts and issues involved in the preparation and interpretation of financial statements; the use of financial information to evaluate and control an organization.

The theoretical and working knowledge of derivatives analysis using mathematics and numerical examples in order to improve understanding in derivatives. Introduction to the different types of derivatives: futures, forward, swaps and options. The concept of trading and hedging strategies using derivatives.

The main purpose of this course is to provide a basic knowledge for implementing common financial models in Excel. This course covers standard financial models in the areas of corporate finance models, portfolio management models, options pricing models, fixed income management models. In this course, the students will be provided clear and concise explanations for the implementation of the various financial models using Excel.

Financial economic theory and modeling techniques as an integral part of mathematical risk management. Mathematical models used for risk management and financial derivatives, the arbitrage-free principle, single-period and multi-period valuation models, valuations of exchange-traded options, application to valuation of uncertain cash flow streams, complete and incomplete models and applications to sophisticated management of risk and insurance products.

This course covers the application of the tools used to assess financial risk: quantitative analysis, fundamental risk management concepts, financial markets and products, and valuation and risk models through a deeper understanding into market, credit, operational and integrated risk management, investment management as well as current market issues.

Types of securities; sources and types of information used in investment analysis; methods and principles of investment decisions; basic principles and methods of securities and portfolio management of both personal and institutional investment.

Development of financial engineering and risk management tools; the process that seeks to adapt existing financial instruments to develop financial innovation so as to enable financial market participants to cope more effectively with financial risk in the changing world.

Choices under uncertainty; perfect and imperfect asset markets, equilibrium asset pricing, differential information in markets and rational expectations, asymmetric information in credit and capital markets; term structure of interest rates under certainty; relationship between real and financial sectors; efficiency of financial markets and institutions; international capital flows and their impact on national economies; financial crises and economic crises; case studies related to financial systems –real sector interactions in developing countries.

Problems in business finance; problems in financial management, investment planning, sources of funds; and dividends; with emphasis on the application of theories and financial techniques in problem-solving using case studies.