Browse Hierarchy MTH6113: Mathematical Tools for Asset Management

This module introduces the key ideas in financial economics and risk management. We begin by looking at various models of the long-term behaviour of security prices. Then we consider different measures of risk that are used by market practitioners. We next look at mean-variance portfolio theory, which is one important way of determining the risk and return of a portfolio, given the risk and return of the individual constituents. We now turn to various economics models that actually attempt to explain the returns of the various assets that trade in the market. Finally, you will learn how the theoretical notion of a utility function can be used to explain individual investors' decisions when allocating their wealth between different investment opportunities.