MECOF19 - MATHEMATICS FOR ECONOMICS AND FINANCE (MATD)

The course aims to provide students with the fundamental tools of mathematical analysis, with particular emphasis on their applications in economics and finance.
EXPECTED LEARNING OUTCOMES
In line with the general objectives of the Degree Program, the course is designed to impart the following theoretical knowledge and operational skills: solution of equations and inequalities; analysis of real-valued functions of one or more variables; integral calculus and its economic applications; study of plane curves; optimization methods, including constrained optimization; analysis of numerical sequences and series. Through these analytical tools, the course introduces and develops the main mathematical applications to finance, including: interest calculation and capital accumulation; valuation of annuities and amortization schedules; analysis and valuation of bonds; determination of the internal rate of return; study of the term structure of interest rates; analysis of financial duration and the principles of portfolio immunization. With regard to communication skills, the course promotes the acquisition of the symbolic and formal language of mathematics, as well as the development of critical interpretation and effective communication of models and results within a multidisciplinary context, with reference to economics and finance.
In accordance with the educational objectives of the Degree Program, the course aims at developing the following competencies.
KNOWLEDGE AND UNDERSTANDING
At the end of the course, the student: - possesses knowledge of the main tools of mathematical analysis for the study of economic and financial problems; - understands the fundamental concepts related to equations and inequalities, real-valued functions, limits, continuity, differentiation, and integration; - is familiar with optimization methods, including problems with constraints; - understands the basic properties of numerical sequences and series; - is familiar with the main mathematical models used in financial analysis, with reference to interest calculation, cash flow valuation, and performance indicators.
APPLYING KNOWLEDGE AND UNDERSTANDING
The student is able to: - apply differential and integral calculus to the solution of economic problems; - use mathematical models for the analysis and valuation of financial transactions; - solve economic optimization problems and interpret the results in applied terms; - analyze sequences and series in economic and financial contexts; - correctly use the main financial indicators.
MAKING JUDGEMENTS
The student is able to: - identify the appropriate mathematical tools for the solution of economic and financial problems; - critically interpret the results of mathematical models, assessing their economic consistency; - formulate quantitative evaluations in support of economic and financial decision-making; - recognize the limitations of the models employed and the underlying assumptions.
COMMUNICATION SKILLS
The student: - uses mathematical language correctly and rigorously; - communicates the results of quantitative analyses clearly and concisely; - interprets and presents mathematical models in economic and financial contexts.
LEARNING SKILLS
The student is able to: - independently acquire further quantitative tools useful for the study of economics and finance; - deepen knowledge of the subject through individual study; - use the acquired knowledge as a foundation for subsequent courses in economics, statistics, and finance.