This course will be conducted before the start of the winter semester.
This course is supplementary to the courses on Fundamentals of Finance and is designed for students who want to refresh their mathematical knowledge needed for finance. The first part of the course deals with key concepts of financial mathematics, while the second part addresses probability theory and mathematical statistics.
Central for modern financial theory is the explicit provision for uncertainty, e.g. uncertainty of future cash flows. The scientific methods of modelling and describing uncertainty are probability theory and mathematical statistics. A good background in statistics is necessary for understanding the quantitative and analytical aspects of economic theory and, in particular, for understanding modern financial theory. The course format includes lectures, practical exercises, and classroom discussions. There will be no written examination and no grading for this course.