FE5001S - Financial Modelling (2020/21)
Module specification | Module approved to run in 2020/21 | ||||||||||
Module status | DELETED (This module is no longer running) | ||||||||||
Module title | Financial Modelling | ||||||||||
Module level | Certificate (04) | ||||||||||
Credit rating for module | 15 | ||||||||||
School | Guildhall School of Business and Law | ||||||||||
Total study hours | 150 | ||||||||||
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Assessment components |
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Running in 2020/21(Please note that module timeslots are subject to change) |
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Module summary
The module focuses on Financial Modelling, and involves the use of Excel and other relevant software to construct financial models including valuation and portfolio models.
Students are encouraged to reflect and draw on their diverse socio-cultural
backgrounds and experiences.
Equality is promoted by treating everyone with equal dignity and worth, while also raising aspirations and supporting achievement for people with diverse requirements, entitlements and backgrounds
A range of transferable and subject specific skills are developed, in particular: written; IT; applied analysis; subject research; problem solving; data and quantitative; analytical and critical thinking.
Prior learning requirements
FE4003 or equivalent
Students must have studied and passed a quantitative methods module at certificate level
Syllabus
Financial Modelling involving the implementation of financial models in Excel. Basic and advanced models in the areas of corporate finance such as valuation models for securities, Optimal vale of investment portfolios, pricing options, and measurement of value at risk (VAR) in Excel spreadsheets. LO 3
Examination of the technical aspects of EViews and Excel as tools of Financial Modelling for data analysis and measuring value of financial assets at risk exposure.LO4
Balance of independent study and scheduled teaching activity
Learning consists of ‘formal’ class room learning directed by the teaching team, and reflective independent learning. The formal learning involves lectures, seminars and computer-workshops while the independent learning consists of reading of the course material, working on weekly exercises including computing assignments using software (for example Excel) and coursework that involves undertaking quantitative analysis and writing a report, and preparing for the final written exam.
The module is delivered in a three-hour session each week which comprises a two-hour lecture, and a one-hour seminar or a one-hour computer workshop. In the seminar students present their solution(s) to the problems set and raise questions on the lecture material. In the computer workshop students undertake empirical analysis using IT software. The seminar and the workshop provide opportunities for active and reflective learning, and also formative feedback. A virtual learning environment (WebLearn) supports blended learning by providing module handbook, lecture notes, seminar materials, IT workshop exercises, past test and exam papers with guideline answers, coursework brief with assessment and grading criteria, videos and other learning material.
All activities provide students with knowledge and understanding of financial modelling. The weekly exercises and the coursework give students such diverse skills as working independently, problem solving, writing concisely and clearly, retrieving secondary data from various online sources and describing and exploring them using spreadsheets.
Professional and transferable skills are developed in lectures and seminars, and through independent directed learning and assessment. Skills development is enhanced through working cooperatively for solving financial modelling problems.
Initiative and independence are developed progressively through the module such that students are required to take greater responsibility of their work.
Learning outcomes
On successful completion of this module students will be able to:
1. Employ financial Models including security valuation, portfolio selection and pricing options using EViews, Excel and other relevant software.
2. Apply theoretical and practical knowledge for the analysis of financial data and risk management.
Assessment strategy
The summative assessment and feedback practices are informed by reflection, consideration of professional practice, and subject-specific knowledge and educational scholarship.
There is ONE summative assessment consisting of an individual coursework (2000 words) in week 27 assessing learning outcomes 3 and 4 in relation to financial modelling.
Through the summative assessments, students are provided with opportunities to develop an understanding of, and the necessary skills to demonstrate, good academic practice.
A feed-forward strategy is used to provide early feedback to students to improve their final submission. Use of the feedforward strategy and class discussion of a detailed grading and assessment criteria create an opportunity for dialogue between students and staff and promote shared understanding of the basis on which academic judgements are made.
The coursework develops students’ ability to work in financial modelling. Detailed information on requirements and guidance will be delivered within the teaching weeks. This coursework is due in week 27. Students will receive timely, constructive and developmental feedback.
The coursework assesses the student’s knowledge and understanding of quantitative analysis and methods applied to financial modelling. Subject research, written communication; data and quantitative analysis; critical thinking; problem solving and IT skills and ability to apply packages such as Excel are developed and assessed.
During seminars students receive formative feedback on their knowledge and understanding of quantitative techniques and analysis by working though exercises and problems which they prepare before the session. This preparation and feedback provide support for students when they later tackle problems set in summative assessment.
Through the summative assessment, students are provided with opportunities to develop an understanding of, and the necessary skills to demonstrate, good academic practice. Written communication, analytical, critical thinking, problem solving, quantitative and interpreting skills are assessed.
All the information about processes of marking and moderating marks, timing of assessments and deadlines for feedback provision are clearly articulated in the module booklet and communicated to students through Weblearn as well.
Bibliography
Core Textbook:
1. Benninga, S. (2014) Financial Modelling 4th Edition, MIT Press, London.
Aldgate 332.015118 BEN
2. Fairhurst, D. S. (2019) Using Excel for Business and Financial Modelling: A Practical
Guide, Wiley Finance
Additional Textbooks:
3. Lower, P. (2019) 7 Financial Models for Analysts, Investors and Finance
Professionals: Theory and practical tools to help investors analyse businesses using
Excel