Page 170 - FINAL_HANDBOOK_20252026

Faculty of Science Handbook, Academic Session 2025/2026

Assessment: Markov chains: Chapman–Kolmogorov
Continuous Assessment: 40% equations random walk models,
Summative Assessment: 60% classification of states, limiting
probabilities, mean time spent in transient
states, branching processes and time
SIQ3011 reversible Markov chains.
BUSINESS FINANCE
Poisson process: exponential distribution,
This course enables the students to counting processes, distribution of inter-
understand and deepen their knowledge of arrival time and waiting time, conditional
business finance theories. In addition, it will distribution of the arrival time,
enable them to understand various nonhomogeneous Poisson process and
advance techniques related to risk and compound Poisson process.
return capital structure, dividend policy,
long-term financing instruments such as Continuous time Markov chains: birth-and-
bonds and equities, risk management and death process, transition probabilities and
mergers and acquisitions. transition rates, limiting probabilities and
time reversibility.
Assessment:
Continuous Assessment: 40% Brownian motion and stationary processes:
Summative Assessment: 60% Brownian motion, martingale, hitting time
and maximum variable, maximum of
SIQ3012 Brownian motion with drift, geometric
FINANCIAL AND BUSINESS MANAGEMENT Brownian motion, white noise, Gaussian
processes and stationary, weakly stationary
This course discusses the various financial Processes.
tools employed to effectively manage a
company’s financial condition and strategic Assessment:
thinking in financial management. Other Continuous Assessment: 40%
topics discussed are financial statement Summative Assessment: 60%
and analysis, time value of money, bonds
and stocks, capital budgeting and its SIT1001
techniques and short-term working capital PROBABILITY AND STATISTICS I
management and basic legal principles
relevant to the work of actuary and Axioms of probability. Counting techniques.
practical implications. Conditional probability. Independent
events. Bayes Theorem.
Assessment:
Continuous Assessment: 40% Discrete random variables and its
Summative Assessment: 60% mathematical expectation. Discrete
distributions: uniform, hypergeometric,
SIQ3013 Bernoulli, binomial, geometric, negative
STOCHASTIC MODELS binomial and Poisson.

Introduction to probability theory, Continuous random variables and its
conditional probability and expectation. mathematical expectation. Continuous

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