Quantitative Techniques For Banking And Finance
- Management Sciences
- 800 level
- 3 credit units
- 204 pages
- 13 units
This course introduces students to quantitative techniques applicable in banking and finance. It covers basic mathematics, functions, sequences, and series. Students will learn investment appraisal methods, including compound interest and present value concepts. The course also explores valuation of bonds and shares, linear programming, and inventory control techniques. Emphasis is placed on applying these quantitative tools to solve real-world problems in banking and finance.
About this course
- Difficulty
- Intermediate
- Study hours
- 208 hours
- Maths
- Intermediate
- Content
- Theoretical, practical, problem solving
- Practical work
- Yes
- Assignments
- Tutor marked assessments
- Final examination
What you'll read
The real module and unit structure of MBF839, taken from the course material NOUN publishes.
One paragraph, so you can see how it reads
MBF839 · UNIT 1 INTRODUCTION TO BASIC MATHEMATICS
In this units too, ratio, proportion as well as variation will be revised. These are basic concepts which appear frequently in business and financial calculations. For example, liquidity ratios, profitability ratios and activity ratios are normally used for determining how well a company's fund is managed etc. etc.
What you should be able to do
- Perform basic arithmetic operations
- Simplify numerical expressions
- Identify like terms in algebraic expressions
- Distinguish between variations
- Explain functional relationships
- Define terminologies relative to function
- Define arithmetic and geometric progressions
- Calculate sequences of numbers
- Identify how geometric progression is used to solve compound interest problems
- Solve problems in investment appraisals
- Explain present value technique
- Calculate present and future values of investment appraisals
What it prepares you for
- Financial Analyst
- Investment Banker
- Portfolio Manager
- Management Accountant
- Project Manager
- Banking
- Finance
- Investment
- Accounting
- Project Management
Where it gets hard
The units students slow down on, and what makes each one heavy.
- Module 2:
Unit 3: Linear Programming II
Requires understanding of complex algebraic manipulations and graphical interpretation.
- Module 3:
Unit 3: Correlation
Requires strong statistical background and understanding of probability distributions.
- Module 3:
Unit 4: Regression Analysis
Involves complex calculations and understanding of statistical significance.
A suggested way through it
13 weeks, about 84 hours in total. Yours will differ.
- Week 1Module 1: Introduction
Unit 1: Introduction to Basic Mathematics · 6 hours
Review numbers, arithmetic operations, exponents, and roots.. Practice simplifying numerical and algebraic expressions.. Solve ratio, proportion, and variation problems..
- Week 2Module 1: Introduction
Unit 2: Functions · 6 hours
Define variables, constants, parameters, and functions.. Identify types of functions: linear, polynomial, absolute value, inverse, step, algebraic, and transcendental.. Solve problems involving supply, demand, cost, profit, and revenue functions..
- Week 3Module 1: Introduction
Unit 3: Sequences and Series · 6 hours
Define arithmetic and geometric progressions.. Calculate sequences of numbers in arithmetic and geometric progressions.. Apply progressions to financial and banking calculations..
- Week 4Module 1: Introduction
Unit 4: Investment Appraisals I · 6 hours
Understand compound interest concepts.. Solve investment appraisal problems using compound interest.. Calculate future values of investments..
- Week 5Module 1: Introduction
Unit 5: Investment Appraisals II · 6 hours
Apply present value techniques in financial decisions.. Calculate present and future values of investments.. Analyze investment projects using present value concepts..
- Week 6Module 2:
Unit 1: Valuation of Bonds and Shares · 6 hours
Explain characteristics of bonds and shares.. Apply present value concepts to value bonds and shares.. Use price-earnings ratios..
- Week 7Module 2:
Unit 2: Linear Programming I · 6 hours
Explain linear programming techniques.. Describe objective functions and constraints.. Solve maximizing problems graphically..
- Week 8Module 2:
Unit 3: Linear Programming II · 6 hours
Use the simplex method for solving maximizing LP problems.. Interpret the simplex tableau.. Solve mixed limitation problems..
- Week 9Module 2:
Unit 4: Inventory Control I · 6 hours
Define inventory types and reasons for holding stocks.. Differentiate the four costs associated with inventory.. Identify inventory control systems and periodic review system..
- Week 10Module 2:
Unit 5: Inventory Control II · 6 hours
Explain the basic Economic Order Quantity (EOQ).. Calculate order quantity when price discounts are possible.. Apply EOQ to inventory control..
- Week 11Module 3:
Unit 1: Inventory Control III · 6 hours
Plan safety or buffer stocks necessary to cope with variations in demand and/or lead time.. Calculate sensitivity analysis in inventory control.. Determine re-order points..
- Week 12Module 3:
Unit 2: Time Series Analysis · 6 hours
Discuss the role of time series analysis in short-term forecasting.. Decompose time series into its various components.. Identify the underlying patterns of a time series..
- Week 13Module 3:
Unit 3: Correlation · 6 hours
Explain the meaning of correlation and its role in decision making.. Compute the correlation coefficient between two variables from sample observations.. Test for the significance of the correlation coefficient in business decision..
Unit 4: Regression Analysis · 6 hours
Explain the role of regression in establishing mathematical relationships between dependent and independent variables from given data.. Use the least square criterion to estimate the model parameters.. Make meaningful forecasts from given data by fitting any function, linear in unknown parameters..
Preparing for the exam
- Focus on understanding and applying formulas for investment appraisal.
- Practice solving linear programming problems using graphical and simplex methods.
- Review inventory control techniques and EOQ calculations.
- Master time series analysis and forecasting methods.
- Understand correlation and regression analysis concepts and applications.
- Practice solving numerical problems from all units.
- Create concept maps linking key concepts from different modules.
- Review all examples and exercises in the course material.
- Allocate sufficient time for studying each unit based on its complexity.
- Form study groups to discuss and clarify challenging concepts.
Questions students ask about this course
What is MBF839 about?
This course introduces students to quantitative techniques applicable in banking and finance. It covers basic mathematics, functions, sequences, and series. Students will learn investment appraisal methods, including compound interest and present value concepts. The course also explores valuation of bonds and shares, linear programming, and inventory control techniques. Emphasis is placed on applying these quantitative tools to solve real-world problems in banking and finance.
How many units does MBF839 have?
MBF839, Quantitative Techniques For Banking And Finance, has 13 units across 3 modules, over 204 pages of course material. You can read it one unit at a time.
How many credit units is MBF839?
MBF839 carries 3 credit units, at 800 level in Management Sciences.
Is MBF839 hard?
MBF839 is rated intermediate level, with intermediate mathematical content. It is mostly theoretical, practical and problem solving work, and it has a practical component.
How long does MBF839 take to study?
About 208 hours of study, spread across its 13 units.
How is MBF839 assessed?
MBF839 is assessed by assignments, tutor marked assessments and final examination.
What can I do with MBF839?
Financial Analyst, Investment Banker, Portfolio Manager, Management Accountant and Project Manager.