ST226 Half Unit
Mathematics for Finance and Investment
This information is for the 2025/26 session.
Course Convenor
Georgios Zouros
Availability
This course is compulsory on the BSc in Actuarial Science and BSc in Actuarial Science (with a Placement Year). This course is available on the BSc in Data Science, BSc in Mathematics, Statistics and Business, Erasmus Reciprocal Programme of Study and Exchange Programme for Students from University of California, Berkeley. This course is freely available as an outside option to students on other programmes where regulations permit. It does not require permission. This course is freely available to General Course students. It does not require permission.
This course has a limited number of places. It is capped, the maximum number of students will be 130. Priority will be given to students on BSc Mathematics, Statistics and Business and BSc Data Science. Whilst there are places available to students from outside these programmes, they are very limited and are allocated on a first come first served basis.
Requisites
Pre-requisites:
Before taking this course, students must have completed: (MA100 and ST102) or (EC1C1 and MA107 and ST109)
Additional requisites:
Equivalent combinations may be accepted at the lecturer's discretion.
Course content
- Introduction to actuarial modelling
- The application of compound interest techniques to financial transactions
- Generalised cash-models to describe financial transactions such as zero-coupon bonds, fixed interest securities, cash on deposit, equities, interest only loans, repayment loans, annuities certain and others
- Introduction to R programming for Actuarial Science
- Introduction to life insurance
Teaching
20 hours of lectures and 9 hours of seminars in the Autumn Term.
This course has a reading week in Week 6 of Autumn Term.
This course will be delivered through a combination of lectures and seminars across the Autumn Term.
Formative assessment
Students will be expected to work in groups and give written answers to a number of problem sets throughout the term.
Indicative reading
J. J. McCutcheon & W. J. Scott, An Introduction to the Mathematics of Finance, Heinemann; Institute and Faculty of Actuaries, Formulae and Tables for Actuarial Examinations; Core reading notes obtainable from the Institute and Faculty of Actuaries;D. Dickson, M. Hardy & H. Waters, Actuarial Mathematics for Life Contingent Risks, International Series on Actuarial Science, pp. I-Vi. Cambridge University Press. 2009
Assessment
Exam (90%), duration: 180 Minutes in the January exam period
Problem sets (10%) in Autumn Term Week 11
10%: In Class Problem Sets: This will be a timed computer-based assessment to be taken in person on campus. Students are required to solve a set of course-related problems using R. Please refer to Moodle for more specific instructions about the nature of this assessment.
Key facts
Department: Statistics
Course Study Period: Autumn Term
Unit value: Half unit
FHEQ Level: Level 5
CEFR Level: Null
Total students 2024/25: 75
Average class size 2024/25: 15
Capped 2024/25: Yes(130)Course selection videos
Some departments have produced short videos to introduce their courses. Please refer to the course selection videos index page for further information.
Personal development skills
- Team working
- Problem solving
- Application of numeracy skills
- Commercial awareness
- Specialist skills