Statistics for Finance

This course introduces the basic mathematical concepts used in financial models. It explains the different approaches to evaluating how a random value can cluster around the average. It looks at how the value of an asset over time can be evaluated using variance and standard deviation. It explains how the distribution of the value of an asset over time can be used in analysing the performance. Finally, it introduces the concept of the value of two or more assets having an influence on each other through correlation. Exercises within the course gives participants the opportunity to apply these techniques.

Suitability

For individuals new to the financial markets

Learning Outcomes

At the end of this course participants should understand_x000D_
– Measures of central tendency and dispersion_x000D_
– Key mathematical distributions used in financial modelling_x000D_
– How to calculate correlations_x000D_

Course Content

Measures of Central Tendency
‐ Mode & median
‐ Arithmetic mean
‐ Weighted average & VWAP
‐ Geometric mean

Measure of Dispersion
‐ Variance
‐ Standard deviation

Exercises: Calculating the standard deviation of single stock returns on stocks with high and low volatilities

Distributions
‐ Normal distribution
‐ Skewed distributions
‐ Financial modelling considerations

Correlation
‐ Correlations between stock returns

Exercises: Calculating and plotting the correlations between pairs of stocks

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of a cohort was promoted within 2 years after participating in an Alpha course.

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of participants felt more confident in their role, following an Alpha commercial leadership course.

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.

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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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