A minimum of 2.2, with a substantial amount of mathematics at university level. Prior experience of finance is not required.
All applicants are considered on an individual basis and additional qualifications, professional qualifications and relevant experience may also be taken into account when considering applications.
Please see our International website for entry requirements by country and other relevant information. Due to visa restrictions, international fee-paying students cannot study part-time unless undertaking a distance or blended-learning programme with no on-campus provision.
The University requires all non-native speakers of English to reach a minimum standard of proficiency in written and spoken English before beginning a postgraduate degree. Certain subjects require a higher level.
For detailed information see our English language requirements web pages.
Please note that if you are required to meet an English language condition, we offer a number of pre-sessional courses in English for Academic Purposes through Kent International Pathways.
Duration: 1 year full-time
You undertake a substantial project in the area of finance or financial econometrics, supervised by an experienced researcher. Some projects are focused on the analysis of particular complex data sets while others are more concerned with generic methodology.
You gain experience of analysing real data problems through practical classes and exercises. The course includes training in the computer language R.
The following modules are indicative of those offered on this programme. This list is based on the current curriculum and may change year to year in response to new curriculum developments and innovation. Most programmes will require you to study a combination of compulsory and optional modules. You may also have the option to take modules from other programmes so that you may customise your programme and explore other subject areas that interest you.
The module enables students to undertake an independent piece of work in a particular area of statistics, or statistical finance/financial econometrics and to write a coherent account of the material.
There is no specific syllabus for this module.
A list of possible topics, together with names of Staff willing to supervise these projects, will be circulated to students in the autumn term. A broad range of projectsis available, encompassing both practical data analysis and more methodological work, although projects that are primarily theoretical will typically have obvious practical applications. Students then choose a topic after consultation and agreement with the relevant member of staff. This is done early in the spring term and some preliminary work is done during the spring term, leading to a short presentation at the end of that term. The main part of the project is then undertaken after the examinations in May.
This course introduces (and revises for some students) the essentials of probability and classical (frequentist) statistical inference, which provide the backbone for later modules.
Syllabus: Probability: axioms, marginal, joint and conditional distributions, Bayes theorem, important distributions, generating functions and various modes of convergence. Classical Inference: Sampling
distributions. Point estimation: consistency, Cramer-Rao inequality, efficiency, sufficiency, minimum variance unbiased estimators. Likelihood. Methods of estimation. Hypothesis tests: maximum likelihood-ratio test, Wald and score tests, profile and test-based confidence intervals.
Linear model. Least squares. General linear model; simple and multiple regression, polynomial regression. Model selection, residuals, outliers, diagnostics. Analysis of variance. Generalised linear model.
Discrete data analysis. Review of Binomial, Poisson, negative binomial and multinomial distributions. Properties, estimation, hypothesis tests.
Contingency tables. Tests for independence. Measures of association. Logistic models.
Multidimensional tables. Log–linear models; fitting and model selection.
Bayes Theorem for density functions; Conjugate models; Predictive distribution; Bayes estimates; Sampling density functions; Gibbs and Metropolis-Hastings samplers; Winbugs/OpenBUGS; Bayesian hierarchical models; Bayesian model choice; Objective priors; Exchangeability; Choice of priors; Applications of hierarchical models.
Stationary Time Series: Stationarity, Autocovariance and autocorrelation functions, Partial autocorrelation functions, ARMA processes. ARIMA Model Building and Testing: Estimation, Box Jenkins, Criteria for choosing between models, Diagnostic tests for the residuals of a time series after estimation. Forecasting: Holt-Winters, Box-Jenkins, Prediction bounds. Distributional properties of asset returns, Regression test for CAPM, Multifactor models, Financial applications of AR, MA, and ARMA, Predicting asset returns, ARCH and GARCH models, Random walk hypothesis tests, Volatility processes.
Introduction: Machine learning and data visualisation with R.
Classification and prediction: Generalised linear model (GLM), linear discrimination analysis (LDA), k-nearest neighbors (KNN). R-based worked examples.
Resampling methods: Cross-validation (CV) and bootstrap. R-based worked examples.
Regression tree-based methods: Classification and regression trees (CART), bagging, random forests and boosting. R-based worked examples.
Support vector machines (SVM): Support vector classifier, regression SVM. R-based worked examples.
Machine Learning in Action:
(a) Biomedical and health data analysis;
(b) Bond default data analysis;
(c) Insurance data analysis;
(d) Financial data analysis;
(e) Other big data analysis.
Multivariate normal distribution, Inference from multivariate normal samples, principal component analysis, mixture models, factor analysis, clustering methods, discrimination and classification, graphical models, the use of appropriate software.
The aim of this module is to provide a grounding in the principles of modelling as applied to actuarial work – focusing particularly on stochastic asset liability models. These skills are also required to communicate with other financial professionals and to critically evaluate modern financial theories.
Indicative topics covered by the module include theories of financial market behaviour, measures of investment risk, stochastic investment return models, asset valuations, and liability valuations.
The additional 4 contact hours for level 7 students will be devoted to applications of the principles of financial economics and asset and liability modelling to complex financial instruments.
This module will cover a number of syllabus items set out in Subject CM2 – Actuarial Mathematics published by the Institute and Faculty of Actuaries.
Introduction: Principles and examples of stochastic modelling, types of stochastic process, Markov property and Markov processes, short-term and long-run properties. Applications in various research areas.
Random walks: The simple random walk. Walk with two absorbing barriers. First–step decomposition technique. Probabilities of absorption. Duration of walk. Application of results to other simple random walks. General random walks. Applications.
Discrete time Markov chains: n–step transition probabilities. Chapman-Kolmogorov equations. Classification of states. Equilibrium and stationary distribution. Mean recurrence times. Simple estimation of transition probabilities. Time inhomogeneous chains. Elementary renewal theory. Simulations. Applications.
Continuous time Markov chains: Transition probability functions. Generator matrix. Kolmogorov forward and backward equations. Poisson process. Birth and death processes. Time inhomogeneous chains. Renewal processes. Applications.
Queues and branching processes: Properties of queues - arrivals, service time, length of the queue, waiting times, busy periods. The single-server queue and its stationary behaviour. Queues with several servers. Branching processes. Applications.
In addition, level 7 students will study more complex queuing systems and continuous-time branching processes.
This module introduces the main features of basic financial derivative contracts and develops pricing techniques. Principle of no-arbitrage, or absence of risk-free arbitrage opportunities, is applied to determine prices of derivative contracts, within the framework of binomial tree and geometric Brownian motion models. The interplay between pricing and hedging strategies, along with risk management principles, are emphasized to explain the mechanisms behind derivative instruments. Models of interest rate and credit risk are also discussed in this context. Outline syllabus includes: An introduction to derivatives, binomial tree model, Black-Scholes option pricing formula, Greeks and derivative risk management, interest rate models, credit risk models.
Marks on this module can count towards exemption from the professional examination CT8 of the Institute and Faculty of Actuaries. Please see http://www.kent.ac.uk/casri/Accreditation/index.html for further details.
Coursework involving: complex theoretical questions, analysis of real-world data using appropriate computing packages over a range of areas of application; analysis appropriate to financial data (in particular modules); written unseen examinations; dissertation.
The programme aims:
You will gain knowledge and understanding of:
You develop intellectual skills in:
You gain subject-specific skills in:
You will gain the following transferable skills:
The 2020/21 annual tuition fees for this programme are:
For details of when and how to pay fees and charges, please see our Student Finance Guide.
For students continuing on this programme fees will increase year on year by no more than RPI + 3% in each academic year of study except where regulated.* If you are uncertain about your fee status please contact firstname.lastname@example.org
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In The Complete University Guide 2020, the University of Kent was ranked in the top 10 for research intensity. This is a measure of the proportion of staff involved in high-quality research in the university.
Please see the University League Tables 2020 for more information.
In the Research Excellence Framework (REF) 2014, research by the School of Mathematics, Statistics and Actuarial Science was ranked 25th in the UK for research power and 100% or our research was judged to be of international quality.
An impressive 92% of our research-active staff submitted to the REF and the School’s environment was judged to be conducive to supporting the development of world-leading research.
Specific interests are in biometry, cluster analysis, stochastic population processes, analysis of discrete data, analysis of quantal assay data, overdispersion, and we enjoy good links within the University, including the School of Biosciences and the Durrell Institute of Conservation and Ecology. A recent major joint research project involves modelling the behaviour of yeast prions and builds upon previous work in this area. We also work in collaboration with many external institutions.
Current work includes non-parametric Bayes, inference robustness, modelling with non-normal distributions, model uncertainty, variable selection and functional data analysis.
Bioinformatics, statistical genetics and medical statistics
Research covers bioinformatics (eg DNA microarray data), involving collaboration with the School of Biosciences. Other interests include population genetics, clinical trials and survival analysis.
Research focuses on empirical likelihood, high-dimensional data analysis, nonlinear dynamic analysis, semi-parametric modelling, survival analysis, risk insurance, functional data analysis, spatial data analysis, longitudinal data analysis, feature selection and wavelets.
Full details of staff research interests can be found on the School's website.
Branching processes in biology; cell division models; ecological statistics; generalised linear mixed models; identifiability.; parameter redundancy.View Profile
Bayesian nonparametrics; MCMC, Urn models; Markov and Levy processes; Move-to-Front and Move-to-Root allocation rules.View Profile
Shape analysis; directional statistics; image analysis.View Profile
Medical statistics and applied statistics.View Profile
Stochastic epidemic models; applied probability; simulation; statistical inference; goodness of fit; branching processes; martingales; medical education.View Profile
Integrated population modelling of dependent data structures.View Profile
Biometry; cluster analysis; stochastic population processes; psychological applications of statistics; multivariate analysis; simulation; analysis of quantal assay data; medical statistics; ecological statistics; overdispersion; estimation using transforms.View Profile
Bayesian nonparametric methods; copula function with its applications in finance; wavelet estimation methods.View Profile
Semi and non-parametric statistical modelling; statistical genetics with medical applications; Bayesian modelling; mixture models; neuroimaging.View Profile
Students often go into careers as professional statisticians in industry, government, research and teaching but our programmes also prepare you for careers in other fields requiring a strong statistical background. You have the opportunity to attend careers talks from professional statisticians working in industry and to attend networking meetings with employers.
Recent graduates have started careers in diverse areas such as the pharmaceutical industry, financial services and sports betting.
The taught programmes in Statistics with Finance provide exemption from the professional examinations of the Royal Statistical Society and qualification for Graduate Statistician status.
Kent’s Computing Service central facility runs Windows. Within the School, postgraduate students can use a range of UNIX servers and workstations. Packages available include R, SAS, MATLAB, SPSS and MINITAB.
Staff publish regularly and widely in journals, conference proceedings and books. Among others, they have recently contributed to: Annals of Statistics; Biometrics; Biometrika; Journal of Royal Society, Series B; Statistics and Computing. Details of recently published books can be found within our staff research interests.
All students registered for a taught Master's programme are eligible to apply for a place on our Global Skills Award Programme. The programme is designed to broaden your understanding of global issues and current affairs as well as to develop personal skills which will enhance your employability.
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