# Financial Mathematics and Statistics

Study in the discipline of Financial Mathematics and Statistics is offered by the School of Mathematics and Statistics in the Faculty of Science. Units of study in this major are available at standard and advanced level.

## About the major

Financial mathematics and statistics is designed to meet the needs of a particularly popular area of employment for our mathematics graduates. Mathematics is the foundation of the financial world. It allows investors, traders and bankers to make optimal decisions and to distribute risk in a rational way. The mathematics behind finance is, however, not simple and relies heavily on ideas from statistics and the mathematical theory of random events.

Financial Mathematics and Statistics will give you a broad introduction to the methods and ideas of mathematical finance and will prepare you for employment in the financial sector or for honours and further study in the field.

## Requirements for completion

A major in Financial Mathematics and Statistics requires 48 credit points, consisting of:

(i) 12 credit points of 1000 level units according to the following rules

(a) 3 credit points of calculus units; 3 credit points of multivariable calculus; 3 credit points of linear algebra units and 3 credit points of statistics units*. (Students in the Mathematical Sciences program must choose this option^);or

(b) 3 credit points of calculus units; 3 credit points of linear algebra units and 6 credit points of data science units*

(ii) 12 credit points of 2000-level core units

(iii) 6 credit points of 3000-level core units

(iv) 6 credit points of interdisciplinary project units

(v) 6 credit points of 3000-level or 4000-level mathematical modelling units

(vi) 6 credit points of 3000-level or 4000-level statistical modelling units

*Students not enrolled in the BSc may substitute ECMT1010 or BUSS1020

^If elective space allows, students may substitute DATA1001/1901 for the statistics unit

A minor in Financial Mathematics and Statistics requires 36 credit points, consisting of:

(i) 12 credit points of 1000 level units according to the following rules:

(a) 3 credit points of 1000-level calculus units; 3 credit points of multivariable calculus units; 3 credit points of linear algebra units and 3 credit points of statistics units; or

(b) 6 credit points of data science units; 3 credit points of calculus units and 3 credit points of linear algebra units

(ii) 12 credit points of 2000-level core units

(iii) 6 credit points of 3000-level core units

(iv) 6 credit points of 3000-level statistical modelling units

## First year

MATH1021/1921/1931 Calculus Of One Variable, MATH1023/1923/1933 Multivariable Calculus and Modelling and MATH1002/1902 Linear Algebra, and either MATH1005/1905 Statistical Thinking with Data or DATA1001/1901 Foundations of Data Science.

The first year units provide a strong foundation for further learning and a broad introduction to the Mathematical Sciences. MATH1021/1921/1931 and MATH1023/1923/1933 extend your knowledge of calculus and introduce you to calculus of several variables and mathematical modelling with differential equations. MATH1002/1902 introduces you to linear algebra, including matrices and their applications. MATH1005/1905 and DATA1001/1901 both introduce you to working with data.

## Second year

Core: MATH2070/2970 Optimisation and Financial Mathematics and STAT2011/2911 Probability and Estimation Theory

The second year units provide core specialist knowledge and skills in Financial Mathematics and Statistics. STAT2011/2911 provides foundational knowledge of random processes and probability while MATH2070/2970 introduces you to mathematical optimisation and the foundations of financial mathematics.

## Third year

In your third year you must take the designated project unit. You must also take MATH3075/3975 which introduces you to the world of financial derivatives, STAT3021/3911 gives you the tools to understand highly variable financial markets and is strongly recommended. Alternatively, you can take STAT3023/3923 Statistical Inference or STAT3022/3922 Applied Linear Models, provided you have the prerequisites. The fourth unit at third year level can be chosen from MATH3979 Complex Analysis (Advanced), MATH3076/4076 Mathematical Computing, MATH4071 Convex Analysis and Optimal Control depending on your particular interests.

## Fourth year

The fourth year is only offered within the combined Bachelor of Science/Bachelor of Advanced Studies course.**Advanced coursework**

The Bachelor of Advanced Studies advanced coursework option consists of 48 credit points, with a minimum of 24 credit points at 4000-level or above. Of these 24 credit points, you must complete a project unit of study worth at least 12 credit points. Advanced coursework will be included in the table for 2020.**Honours**

Meritorious students in the Bachelor of Science/Bachelor of Advanced Studies may apply for admission to Honours within a subject area of the Bachelor of Advanced Studies. Admission to Honours requires the prior completion of all requirements of the Bachelor of Science, including Open Learning Environment (OLE) units. If you are considering applying for admission to Honours, ensure your degree planning takes into account the completion of a second major and all OLE requirements prior to Honours commencement.

Unit of study requirements for Honours in the area of Financial Mathematics and Statistics: completion of 24 credit points of project work and 24 credit points of coursework. Honours units of study will be available in 2020.

## Contact and further information

W sydney.edu.au/science/schools/school-of-mathematics-and-statistics

First year enquiries email:

Other undergraduate enquiries email:

All enquiries phone: +61 2 9351 5804 or +61 2 9351 5787**School of Mathematics and Statistics**

Level 5, Carslaw Building F07

University of Sydney NSW 2006

Professor Mary Myerscough

T 9351 3724

E

## Learning Outcomes

Students who graduate from Financial Mathematics and Statistics will be able to:

- Exhibit a broad and coherent body of knowledge in fundamental areas in mathematics and statistics, with a particular focus on optimisation, risk analysis and stochastic processes.
- Interpret information communicated in mathematical or statistical form.
- Identify and address gaps in knowledge and skills by independently sourcing, collating and synthesising appropriate resources that extend their understanding of concepts in financial mathematics and statistics.
- Communicate mathematical information, reasoning and conclusions through a range of modes, to diverse audiences, using evidence-based arguments that are robust to critique.
- Construct logical, clearly presented and justified arguments in mathematics and statistics, including incorporating deductive or evidence-based reasoning.
- Formulate and model practical and abstract problems in mathematical and statistical terms using a variety of methods.
- Address practical and abstract problems in mathematics and statistics with a focus on the financial sector, using a range of concepts, techniques and technologies, working responsibly and ethically and with consideration of cross-cultural perspectives, within collaborative and interdisciplinary teams.