Introduction and Probability Distributions

Financial Modelling

Statistical analysis: how numerical information is collected, analysed, presented, and interpreted.
Tools and techniques.
Equations and formulas.
Numerical examples.
Statistical software.

Applications

Project Appraisal.
- forecasting techniques
- probability

Company Performance
- ratio analysis.
- comparison of ratios
- statistical tests

Portfolio Investment
- price earnings ratio
- dividend yield
- comparison of ratios
- patterns through time

Risk and Return
- Capital Asset Pricing Model (CAPM)
- regression analysis

Event Die 1 Die 2 Die 3 Probability Sum Event Die 1 Die 2 Die 3 Probability Sum Event Die 1 Die 2 Die 3 Probability Sum

of Event of dice

of Event of dice

of Event of dice

1
1
1
1
1/216
3
73
3
1
1
1/216
5
145
5
1
1
1/216
7
2
1
1
2
1/216
4
74
3
1
2
1/216
6
146
5
1
2
1/216
8
3
1
1
3
1/216
5
75
3
1
3
1/216
7
147
5
1
3
1/216
9
4
1
1
4
1/216
6
76
3
1
4
1/216
8
148
5
1
4
1/216
10
5
1
1
5
1/216
7
77
3
1
5
1/216
9
149
5
1
5
1/216
11
6
1
1
6
1/216
8
78
3
1
6
1/216
10
150
5
1
6
1/216
12
7
1
2
1
1/216
4
79
3
2
1
1/216
6
151
5
2
1
1/216
8
8
1
2
2
1/216
5
80
3
2
2
1/216
7
152
5
2
2
1/216
9
9
1
2
3
1/216
6
81
3
2
3
1/216
8
153
5
2
3
1/216
10
10
1
2
4
1/216
7
82
3
2
4
1/216
9
154
5
2
4
1/216
11
11
1
2
5
1/216
8
83
3
2
5
1/216
10
155
5
2
5
1/216
12
12
1
2
6
1/216
9
84
3
2
6
1/216
11
156
5
2
6
1/216
13
13
1
3
1
1/216
5
85
3
3
1
1/216
7
157
5
3
1
1/216
9
14
1
3
2
1/216
6
86
3
3
2
1/216
8
158
5
3
2
1/216
10
15
1
3
3
1/216
7
87
3
3
3
1/216
9
159
5
3
3
1/216
11
16
1
3
4
1/216
8
88
3
3
4
1/216
10
160
5
3
4
1/216
12
17
1
3
5
1/216
9
89
3
3
5
1/216
11
161
5
3
5
1/216
13
18
1
3
6
1/216
10
90
3
3
6
1/216
12
162
5
3
6
1/216
14
19
1
4
1
1/216
6
91
3
4
1
1/216
8
163
5
4
1
1/216
10
20
1
4
2
1/216
7
92
3
4
2
1/216
9
164
5
4
2
1/216
11
21
1
4
3
1/216
8
93
3
4
3
1/216
10
165
5
4
3
1/216
12
22
1
4
4
1/216
9
94
3
4
4
1/216
11
166
5
4
4
1/216
13
23
1
4
5
1/216
10
95
3
4
5
1/216
12
167
5
4
5
1/216
14
24
1
4
6
1/216
11
96
3
4
6
1/216
13
168
5
4
6
1/216
15
25
1
5
1
1/216
7
97
3
5
1
1/216
9
169
5
5
1
1/216
11
26
1
5
2
1/216
8
98
3
5
2
1/216
10
170
5
5
2
1/216
12
27
1
5
3
1/216
9
99
3
5
3
1/216
11
171
5
5
3
1/216
13
28
1
5
4
1/216
10
100
3
5
4
1/216
12
172
5
5
4
1/216
14
29
1
5
5
1/216
11
101
3
5
5
1/216
13
173
5
5
5
1/216
15
30
1
5
6
1/216
12
102
3
5
6
1/216
14
174
5
5
6
1/216
16
31
1
6
1
1/216
8
103
3
6
1