Essential Maths for Financial Markets Masterclass

This course gives the learners a solid foundation in financial mathematics.

The time value of money, compounding and discounting form the initial base. Learners will evaluate bond prices versus yields as well as performing annuity, amortisation and IRR calculations. The principles of statistics are outlined and participants will gain an understanding of arithmetic and geometric means, normal distributions, standard deviation and correlation and their application in financial markets.

Suitability

This course is suitable for anyone new to financial markets or the financial services industry.

Learning Outcomes

Time value of money
Compounding and discounting
Calculate forward and present values of cash amounts and flow
Explain the difference between nominal (BEY) and effective rates
Use PV, FV and annuity formulas to perform calculations
Translate bond effective yields to a number of payments per year
Recognise the properties of a bond
Price a coupon bearing bond from a yield
Describe how a yield curve is generated
Define and calculate each of mean, median and mode
Appreciate the value of weighted averages
Calculate the geometric mean of a set of percentage returns
Recognise the need for distribution theory
Define and calculate standard deviation and variance
Compare and contrast skewed distributions
Examine the NPV and IRR relationship
Work through a case study example for IRR
Explore the limitations of IRR
Understand amortisation principles
Rearrange the annuities formula to solve for payments on an amortising loan
Use this formula to construct an excel payment schedule
Understand correlation principles
Calculate covariance and correlation
Summarise the importance of correlation calculations in financial markets

Course Content

Unit 1 – Discounting and compounding PV And FV

Unit 2 – Nominal and effective interest rates

Unit 3 – Bond price given yield and yield given price

Unit 4 – Means and geometric means (mode and median)

Unit 5 – Normal distribution and standard deviation

Unit 6 – IRR returns

Unit 7 – Loan amortisation

Unit 8 – Correlation

This Course Includes

Learn: 8 micro-learning on-demand videos
Check: 8 knowledge checks to validate understanding
Apply: 8 hands-on practical exercises and projects
Requirements: Access to a computer with an internet connection
Accessibility: Access on PC, mobile or TV
Certification: Certificate of completion with CPD record

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Why study with Alpha?

Innovation and creativity born from experience

We are thought leaders in instructional and learning journey design and holistic solution architects. We have extensive finance and investments experience combined with skills application to deliver performance improving results. We develop immersive learning environments that maximize time to productivity, support talent retention and added value to improving quality of hires.

Knowledge Exchange Evangelists

We are focused on mining the embedded organisational intellectual capital for the benefit of the next generation. We create and curate best in class practice gathered from our experience with the leading financial institutions. We design our programmes with the end in mind – what results are you trying to achieve with this intervention? What metrics will we set ourselves to achieve that?

Generation Proof

Quality and innovation, using current market and industry best practices, have made us a trusted partner in delivering dynamic and motivating training for the financial and capital markets. Our programmes are generation proof and responsive to evolving learner needs and styles. Our solutions use a multi-stakeholder engagement strategy that expands beyond relationships between the learner and learning provider. We create connections with managers, peers and the wider business to drive impactful return on investment..

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