QUANTITATIVE TECHNIQUES FOR FINANCE

Course Objectives

At the end of this course the learner is expected to

  • To understand the various basic theory of probability and applications of theoretical distribution in finance.
  • To apply the various quantitative techniques to solve business problems and ability to analyze and interpret the various index numbers in business and to know the economic and business index in India.
  • To determine and evaluate the project to minimize the cost and time through CPM
  • Ability to know the role and applications of queuing theory, simulation and time series in business for financial analysis
  • Ability to apply the inventory control technique to control the material cost and to identify the optimum profit through game theory that is minimized lose and maximize the profit.
  • To be able to select the best course of action and to improve the professional skills for their business

UNIT - I

Probability – Definition- Addition and multiplication rules Probability distribution – Theoretical distributions – Binomial poison and normal – Simple problems applied to finance

UNIT - II

Queuing theory – Applications to Business Decisions – Simulation – Monte Carlo Techniques - Time series – Components of time series – Use of time series data for financial analysis.

UNIT - III

Index numbers – concepts – simple and weighted index numbers – Economic and business index numbers published in India

UNIT - IV

Network Analysis - Managerial Applications - CPM / PERT network components - CPM - Methodology - Critical Path - Total Float, Free Float - Independent Float – Distinction Between PERT and CPM.

UNIT - V

Inventory Management - Determinants - Factors affecting Inventory Control - EOQ - inventory models - Types of Inventory models - Game theory - Zero sum Games: Arithmetic and Graphical Method,

REFERENCES

  • C.R.Kothari, “Quantitative Techniques”, Vikas Publications, New Delhi
  • S.P. Gupta, “Statistical Methods”, S.Chand & Sons Publisher, New Delhi.
  • V.K. Kappor, "Operations Research - Problems and Solutions", Sultan Chand & Sons Publisher, New Delhi.

@ 2020 - 2021 Copyright, SRM Institute of Science and Technology (formerly known as SRM University), All Rights Reserved