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DEGREE REGULATIONS & PROGRAMMES OF STUDY 2011/2012
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DRPS : Course Catalogue : Business School : Business Studies

Undergraduate Course: Financial Modelling with Excel (BUST10025)

Course Outline
SchoolBusiness School CollegeCollege of Humanities and Social Science
Course typeStandard AvailabilityAvailable to all students
Credit level (Normal year taken)SCQF Level 10 (Year 4 Undergraduate) Credits20
Home subject areaBusiness Studies Other subject areaNone
Course website http://www.bus.ed.ac.uk/programmes/ugpc.html Taught in Gaelic?No
Course descriptionFinancial 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 (not applicable to Visiting Students)
Pre-requisites Students MUST have passed: Principles of Finance (BUST08003)
Co-requisites
Prohibited Combinations Other requirements None
Additional Costs None
Information for Visiting Students
Pre-requisitesNone
Displayed in Visiting Students Prospectus?Yes
Course Delivery Information
Not being delivered
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 exam diet.
Special Arrangements
None
Additional Information
Academic description Not entered
Syllabus Not entered
Transferable skills Not entered
Reading list Not entered
Study Abroad Not entered
Study Pattern Not entered
KeywordsFME
Contacts
Course organiserDr Angelica Gonzalez
Tel: (0131 6)51 3027
Email: angelica.gonzalez@ed.ac.uk
Course secretaryMs Ruth Winkle
Tel: (0131 6)50 8335
Email: Ruth.Winkle@ed.ac.uk
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