Module
Financial Modelling
Module description
This module is intended for Financial Services Professional Degree Apprenticeship students who want to develop the knowledge and tools to implement financial models using Excel. This is an applied module that covers the implementation of quantitative financial models that are widely used in financial institutions such as investment banks, mutual funds and hedge funds, and in non-financial corporations.
The module covers a range of topics in finance drawn from investment analysis, corporate finance, fixed-income analysis, risk management and international finance. The emphasis of the module is on the practical application of finance theory, in which you will work, through real-world problems using Excel.
Full module specification
Module title: | Financial Modelling |
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Module code: | BEF3006DA |
Module level: | 3 |
Academic year: | 2019/0 |
Module lecturers: | |
Module credit: | 15 |
ECTS value: | 7.5 |
Pre-requisites: | None |
Co-requisites: | None |
Duration of module: |
Duration (weeks) - term 1: 11 |
Module aims
The aim of this module is to equip you with the knowledge and tools to implement financial models using Excel. The course introduces you to the general principles of building financial models, as well as a number of specific financial modelling tools including regression analysis, statistical functions, matrix functions, optimisation and simulation. These methods are applied to a range of practical problems in finance, including financial statement modelling, yield curve modelling, risk management and exchange rate modelling. The emphasis of the course is on practical application of the theory, with lectures on each topic followed by in-depth practical sessions, in which you will work through real-world problems using Excel. The module will also introduce you to the use of VBA (Microsoft’s programming language) in financial modelling.
ILO: Module-specific skills
- 1. Explain 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 and currencies
- 3. Undertake a range of financial and statistical calculations in Excel
- 4. Estimate the cost of capital for a company
- 5. Build a financial statement model and use this to estimate the fair value of a company
- 6. Estimate the expected yield of a corporate bond and construct a yield curve
- 7. Evaluate the risk of an investment portfolio
- 8. Estimate the fair value of a currency
- 9. Implement currency trading strategies based on momentum, carry and fair value
ILO: Discipline-specific skills
- 10. Effectively undertake complex financial modelling and research and analysis using appropriate tools
- 11. Design a range of different trading strategies and test their effectiveness
ILO: Personal and key skills
- 12. Develop proficiency in the relevant IT skills (Excel) and Financial Service specific software/systems, as required to deliver the role outcomes
- 13. Demonstrate a good understanding of processes and project management principles and how they are utilised within their area
- 14. Develop an ability to adapt their approach positively to manage priorities as circumstances change, new tasks need to be done or when business requirements change
Learning activities and teaching methods (given in hours of study time)
Scheduled Learning and Teaching Activities | Guided independent study | Placement / study abroad |
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40 | 110 |
Details of learning activities and teaching methods
Category | Hours of study time | Description |
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Scheduled Learning & Teaching Activities | 14 hours (2 days) | Masterclass/workshops |
Scheduled Learning & Teaching activities | 20 hours | Online lectures and webinars |
Scheduled Learning & Teaching activities | 6 hours | Revision |
Guided independent study | 110 hours | Reading and research, web-based activities |
Formative assessment
Form of assessment | Size of the assessment (eg length / duration) | ILOs assessed | Feedback method |
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Online Discussion | Online discussion contributions | 1-14 | Online discussion feedback from peers and lecturer |
Weekly online quizzes | Six quizzes, each taking about 20 minutes | 1-12 | Correct answers on ELE |
Weekly Case Studies | Six weekly practical case studies, each lasting 3 hours | 1-14 | Feedback and suggested solutions provided on ELE |
Summative assessment (% of credit)
Coursework | Written exams | Practical exams |
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50 | 50 | 0 |
Details of summative assessment
Form of assessment | % of credit | Size of the assessment (eg length / duration) | ILOs assessed | Feedback method |
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Exam | 50 | 1-hour written exam | 1-11 | |
Applied exercise/Assignment | 50 | 2,000 words | 1-14 | |
0 | ||||
0 | ||||
0 | ||||
0 |
Details of re-assessment (where required by referral or deferral)
Original form of assessment | Form of re-assessment | ILOs re-assessed | Timescale for re-assessment |
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Exam | 1-hour written exam | 1-11 | Next available opportunity |
Applied exercise/Assignment | 2,000 words | 1-14 |
Re-assessment notes
Defer – as first time
Refer – capped at 40%
Syllabus plan
- Introduction
- Financial statement modelling
- Default adjusted bond yields
- Yield curve modelling
- Risk management
- Exchange rate modelling
Indicative learning resources - Basic reading
Basic reading:
- Benninga, S. (2014) Financial Modelling, 4th edition, Massachusetts: MIT Press
Module has an active ELE page?
Yes
Origin date
28/02/2019
Last revision date
15/03/2019