| Unit name | Financial Modelling |
|---|---|
| Unit code | EFIMM0049 |
| Credit points | 15 |
| Level of study | M/7 |
| Teaching block(s) |
Teaching Block 2 (weeks 13 - 24) |
| Unit director | Professor. Harris |
| Open unit status | Not open |
| Pre-requisites |
None |
| Co-requisites |
None |
| School/department | School of Accounting and Finance - Business School |
| Faculty | Faculty of Social Sciences and Law |
The aim of this module is to equip students with the knowledge and tools to implement financial models using Excel and VBA. The course introduces students to the general principles of building financial models, as well as a number of specific financial modelling tools, including the calculation of present and future value, matrix calculations, optimisation, regression analysis, maximum likelihood estimation and simulation. These methods are applied to a range of practical problems in finance, including passive and active portfolio management, performance measurement, risk management and currency valuation. The emphasis of the course is on practical application of the theory, with lectures on each topic followed by in-depth practical classes, in which students work through real world problems using Excel and VBA.
1. Understand the objectives of financial modelling and the characteristics of financial data.
2. Download financial data from the internet for a range of securities, including stocks, bonds, derivatives and currencies.
3. Undertake a range of financial and statistical calculations in Excel and VBA and apply them to specific topics.
4. Design a modelling strategy relevant to a given topic.
5. Manage complex tasks in a team.
6. Present results of the analysis in a formal way.
Teaching will be delivered through a combination of synchronous and asynchronous sessions including lectures, tutorials, drop-in sessions, discussion boards and other online learning opportunities
This unit will be assessed by group coursework 60% and individual coursework 40%
Financial Modeling (fourth edition) by Simon Benninga, MIT Press, 2014.
