Syllabus - Analytical Finance

Outcomes

The Degree Programme in Analytical Finance will satisfy the growing need of scientifically educated personnel within the finance sector. The Analytical Finance programme aims to give the programme students a good basis for work, directed towards the development of pricing of derivatives, and the testing of risk management models, as risk analysts, quantitative analysts or asset managers.

Knowledge and Understanding

On completion of the degree programme, independently of the main field of study, the student shall be able to:

• account for basic concepts and principles in basic higher education Mathematics, including algebra, differential calculus, probability theory and statistical theory and apply this knowledge in problem-solving,
• account for and apply basic concepts, principles and models in micro- and macroeconomics, and also
• account for and apply basic concepts, principles and models in business administration such as marketing, organisation theory and bookkeeping.

On completion of the degree programme, with Mathematics/Applied Mathematics as the main field of study, the student shall be able to:

• demonstrate understanding of, and the ability to apply, basic theorems in differential calculus, linear algebra, probability theory and statistical theory,
• demonstrate understanding of, and the ability to explain, some of the mathematical models used in financial engineering and portfolio theory along with the assumptions and limitations of the models, and also
• understand theories and methods of linear programming and operations research.

On completion of the degree programme, with Economics as the main field of study, the student shall be able to:

• demonstrate deeper knowledge within a chosen area of economics. Included in this is knowledge of current research.

Aptitudes and Accomplishments

On completion of the degree programme, independently of the main field of study, the student shall be able to:

• use his/her knowledge and understanding of basic concepts, theories and principles in mathematics, economics, and business administration for problem-solving in business and finance,
• give clear and correct, with regard to both language and content, customised oral and written presentations in English,
• cooperate successfully in groups by contributing with facts and ideas which lead to a good result of the group’s work,
• communicate effectively in accordance with the accepted academic norms of the programme’s field of study and write both detailed and well-structured reports, and also
• work independently and, with a minimum of supervision, identify important problem areas in business and financial operations and also by observing given frameworks, use correct tools and methods for solving the problems.

On completion of the degree programme, with Mathematics/Applied Mathematics as the main field of study, the student shall be able to:

• transfer financial and economic problems described in non-mathematical terms to mathematical terms and use this transfer to solve the problems,
• construct and develop logical mathematical arguments so that assumptions and conclusions are clearly shown,
• use calculation programmes as aids for mathematical processes and for information retrieval and also have a basic knowledge of programming languages and software of importance to the finance branch, and also
• produce qualitative information from quantitative data with the aid of statistical methods and software.

Ability to Evaluate and Assess

On completion of the degree programme, independently of the main field of study the student shall be able to:

• demonstrate the ability to evaluate his/her own strengths and weaknesses, question opinions and develop his/her own assessments and evaluations,
• demonstrate the ability to make his/her own assessments within the economics field,  taking into account relevant scientific, social and ethical aspects,
• demonstrate the capacity for quantitative thinking, i.e. be able to make calculations without the aid of pocket calculators and also be able to judge whether a result is reasonable or not, and also
• demonstrate the ability to assess situations which can arise in business and financial operations and take into account scientific, social and ethical aspects.

Language of instruction

The language of instruction is English, which includes all teaching, examination and literature, etc.

Contents

Analytical Finance is a three-year degree programme which offers a basis in Mathematics, Economics and Business Administration. The focus of the programme is placed on real problems in working life in business and public financial activities, and the literature has been chosen to support this specialisation. Advanced financial software is used in the teaching.

Teaching on the programme consists of lectures, problem-solving lessons and seminars. During the lectures the teacher gives a short introduction to the following part of the course. During the problem-solving lesson the students, under the guidance of the teacher, solve commensurate problems. During these lessons, small groups of students can also present their solutions. The seminars are prepared by the students, in groups, selecting a relevant subject and in groups write a report on the subject, which is presented at the seminar. The student is expected to set aside non-scheduled time for group work and individual study.

The courses are examined both by written final examinations and continually during the progress of the course, in the form of, for example, seminar reports, problem-solving assignments and written tests of knowledge. Three different types of examination methods are employed: portfolio examination, seminar examination and written examination. To pass the portfolio examination the student hands in the answers to the assigned problem-solving exercises to the teacher. To pass the seminar assignment the student will write a report and orally present this at the seminar. Written tests of knowledge during the progress of the course can occur.

The programme consists of courses divided into years as indicated below.

Year 1
Mathematics/Applied Mathematics:
Mathematics for Economics and Business, 7.5 credits
Vector Algebra, 7.5 credits
Single Variable Calculus, 7.5 credits
Introduction to Financial Mathematics, 7.5 credits

Business Administration:
Financial Accounting, 7.5 credits
Cost and Management Accounting, 7.5 credits

Economics:
Microeconomics, 7.5 credits
Environmental Economics, 7.5 credits

Year 2
Mathematics/Applied Mathematics:
Calculus of Several Variables, 7.5 credits
Probability Theory, 7.5 credits
Numerical Methods with MATLAB, 7.5 credits
Methods of Statistical Inference, 7.5 credits

Elective 30 credits:

Alternative 1 - Mathematics/Applied Mathematics
Mathematics/Applied Mathematics:
Discrete Mathematics, 7.5 credits
Linear Algebra, 7.5 credits
Elements of Real and Complex Analysis, 7.5 credits
Differential Equations, an Introductory Course, 7.5 credits

Alternative 2 - Economics
Business Administration:
Marketing Basics, 7.5 credits
Organisation Basics, 7.5 credits

Economics:
International Economics, 7.5 credits
Macroeconomics, 7.5 credits

Year 3
Elective 60 credits:

Alternative 1 - Mathematics/Applied Mathematics
Mathematics/Applied Mathematics:
Applied Mathematics, 7.5 credits
Introduction to Algebraic Structures, 7.5 credits
Introduction to research areas in mathematics/applied mathematics, 7.5 credits
Applied Matrix Analysis, 7.5 credits
Degree Project in Mathematics, 15 credits
Operations Research, 7.5 credits
Finite Element Method, 7.5 credits

Alternative 2 - Mathematics/Applied Mathematics, specialization Financial Engineering
Mathematics/Applied Mathematics:
Stochastic Processes, 7.5 credits
Portfolio Theory I, 7.5 credits
Introduction to research areas in mathematics/applied mathematics, 7.5 credits
Operations Research, 7.5 credits
Simulation, 7.5 credits
Degree Project in Mathematics, 15 credits

Elective 7.5 credits within alternative 2:
Mathematics/Applied Mathematics:
Analytical Finance with MATLAB, 7.5 credits
Applied Matrix Analysis, 7.5 credits
Time Series Analysis, 7.5 credits

Alternative 3 - Economics
Economics:
Macroeconomic Theory, 7.5 credits
Engineering and Management, 7.5 credits
Bachelor’s Essay in Economics, 15 credits

Elective 30 credits within alternative 3:
Economics:
Finance, 7.5 credits
Microeconomics II, 7.5 credits
Econometrics, 7.5 credits
Labour Economics, 7.5 credits

Mathematics/Applied Mathematics:
Portfolio Theory I, 7.5 credits

Choices within the program

After two years of study the students choose to study Mathematics/Applied Mathematics, Mathematics/Applied Mathematics with specialization in Financial Engineering, or Economics.

University degree

The degree programme is so designed that the studies will lead towards fulfilment of the requirements for one of the following degrees:

• Bachelor of Science in Mathematics/Applied Mathematics. The examination requirements for this degree are fulfilled if the studies are completed according to year 1 along with alternative 1 for year 2 and 3.
• Bachelor of Science in Mathematics/Applied Mathematics with Specialization in Financial Engineering. The examination requirements for this degree are fulfilled if the studies are completed according to year 1 along with alternative 1 for year 2 and alternative 2 for year 3.
• Bachelor of Social Science in Economics. The examination requirements for this degree are fulfilled if the studies are completed according to year 1 along with alternative 2 for year 2 and alternative 3 for year 3.

If the programme contains elective or optional components, or if a student chooses not to complete a certain course, the choices made can affect the possibility of fulfilling the degree requirements. For more information about degrees and degree requirements, consult the local degree regulations which are published on the University website.