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Unit information: Financial Modelling in 2020/21

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
Faculty Faculty of Social Sciences and Law

Description

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.

Intended learning outcomes

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 details

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

Assessment Details

This unit will be assessed by group coursework 60% and individual coursework 40%

Reading and References

Financial Modeling (fourth edition) by Simon Benninga, MIT Press, 2014.

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