Archived Version

The Degree Regulations and Programmes of Study has been formulated as a dynamic online publication in order to provide the most up to date information possible. Master versions of the Degree Regulations and Programmes of Study incorporating all changes to date are archived twice a year on 1 September and within the first three University working days prior to the start of Semester 2 in January. Please note that some of the data recorded about this course has been amended since the last master version was archived. That version should be consulted to determine the changes made.

view archived version

Financial Modelling with Excel (BS0196)

? Credit Points : 20 ? SCQF Level : 10 ? Acronym : MSE-4-FME

Financial Modelling is intended to give students the opportunity to widen and deepen their knowledge of financial theory and practice by explaining how financial models and techniques may be implemented. Students are expected to use Excel to model a number of common applications including the construction of portfolios, tests of market efficiency, estimation of risk measures, performance measurement and the valuation of options. By the end of the course students should have a much clearer understanding of finance concepts as well as an extended knowledge of the spreadsheet package.

Entry Requirements

? This course is not accepting further student enrolments.

? Pre-requisites : Principles of Finance

Subject Areas

Home subject area

Business Studies, (Management School and Economics, Schedule H)

Delivery Information

? Normal year taken : 4th year

? Delivery Period : Semester 2 (Blocks 3-4)

? Contact Teaching Time : 2 hour(s) per week for 10 weeks

First Class Information

Date	Start	End	Room	Area	Additional Information
07/01/2008	09:00	10:50			William Robertson Building, Computer Lab, rooms 105/107

All of the following classes

Type	Day	Start	End	Area
Laboratory	Monday	09:00	10:50	Central

Summary of Intended Learning Outcomes

Course Objectives and Learning Outcomes

Financial Modelling is intended to give students the opportunity to widen and deepen their knowledge of financial theory and practice by explaining how financial models and techniques may be implemented. Students are expected to use Excel to model a number of common applications including the construction of portfolios, tests of market efficiency, estimation of risk measures, performance measurement, and the valuation of options.

After completing this course, students should understand and be able to:
- Construct and examine the characteristics of distributions of returns
- Calculate the variance co-variance matrix and use it to select optional portfolios
- Test for market efficiency using simple tests
- Develop, construct and run an event study analysis of the abnormal returns
- Estimate betas and calculate a firm's cost of capital
- Calculate the value of an option using Black Scholes and the binomial model
Use and develop spreadsheet based solutions to financial problems

Assessment Information

Two final research projects count for 100% of the grade. The first project (50%) will be individual with a maximum of 3,000 words. It will cover the work of the first part of the course (Portfolio Models, Market Efficiency and Event Studies). The second project (50%) will be individual with a maximum of 3,000 words. It will cover the second part of the course (Bonds, Option Pricing Models and Corporate Finance Models). Both projects must be handed in during the April/May diet.