ETM2860 Economic modelling 1

In this unit, you will be introduced to the foundational theories of portfolio management and the creation of asset models, which are crucial components for effective risk management within financial services firms. Building on the prerequisites of Risk and Survival Modelling, Time Series and Stochastic Processes, and Calculus I, this unit equips you with essential tools for rational economic decision-making and asset pricing. The curriculum emphasizes practical applications, focusing on portfolio management techniques and risk assessment within the dynamic context of financial services. This unit aims to prepare you for the complexities of evaluating investment opportunities, applying financial risk measurement tools, and utilizing asset pricing models to estimate expected returns and assess individual asset risks by providing you with a solid grounding in economic theories and modelling techniques.

Upon unit completion, you will have acquired a good understanding of the theory and techniques related to portfolio management and the risk assessments, which serves as a critical step in developing analytical skills for roles in actuarial analytics and risk management, and provide sufficient expertise for use in various later units and the actuarial professional examinations.