1. COURSE OBJECTIVES
This course introduces basic concepts with respect to financial modeling. It focuses on calculus tools that are widely used to solve financial problems. Upon completing this course, students will be able to build business valuation models, asset pricing models and risk management models using tools available on personal computers.
2. COURSE CONTENT
|
No. |
Content |
Time Allocation |
Contribution to CLO |
|||
|
Hour(s) on the class |
Essays, exercise, Assignments |
Self-study with teacher’s tutorials |
||||
|
Lecture |
Practice, Seminar |
|||||
|
1 |
Chapter 1: Basic Financial Calculations |
2 |
1 |
1 |
5.5 |
1,7,8 |
|
2 |
Chapter 1: Basic Financial Calculations (cont.) |
2 |
1 |
1 |
5.5 |
1,7,8 |
|
3 |
Chapter 2: Corporate Valuation Overview |
2 |
1 |
2 |
5.5 |
2,7,8 |
|
4 |
Chapter 2: Corporate Valuation Overview (cont.) |
2 |
1 |
1.5 |
5.5 |
2,7,8 |
|
5 |
Chapter 3: Calculating the Weighted Average Cost of Capital (WACC) |
2 |
1 |
1.5 |
5.5 |
3,7,8 |
|
6 |
Chapter 3: Weighted Average Cost of Capital (WACC) (cont.) |
2 |
1 |
1 |
5.5 |
3,7,8 |
|
7 |
Chapter 3: Weighted Average Cost of Capital (WACC) (cont.) |
2 |
1 |
2 |
5.5 |
3,7,8 |
|
8 |
Chapter 4: Calculating Efficient Portfolios |
2 |
1 |
1.5 |
5.5 |
4,7,8 |
|
9 |
Chapter 5: Estimating Betas and the Security Market Line |
2 |
1 |
1.5 |
5.5 |
4,7,8 |
|
10 |
Chapter 6: Efficient Portfolios without Short sales |
2 |
1 |
1.5 |
5.5 |
4,7,8 |
|
11 |
Chapter 7: The Binomial Option Pricing Model |
2 |
1 |
1.5 |
5.5 |
5,7,8 |
|
12 |
Chapter 8: The Black-Scholes Model |
2 |
1 |
2 |
5.5 |
5,7,8 |
|
13 |
Chapter 9: An Introduction to Monte Carlo Methods |
2 |
1 |
1.5 |
5.5 |
6,7,8 |
|
14 |
Chapter 10: Simulating stock prices |
2 |
1 |
1.5 |
5.5 |
6,7,8 |
|
15 |
Chapter 11: Monte Carlo simulation for Investments |
2 |
1 |
1.5 |
5.5 |
6,7,8 |
|
Total |
30 |
15 |
22.5 |
82.5 |
||
3. COURSE ASSESSMENT
– Score ladder: 10
– Type of assessment
|
Form |
Content |
Criteria |
CLO |
Proportion |
|
|
Formative |
Attendance |
|
The number of attendances and participation in lesson |
1-6,9 |
10% |
|
Midterm exam |
Issues have been studied |
MCQ and/or essay questions (60 minutes) |
1,2,3,7-9 |
30% |
|
|
Summative |
Final test |
|
MCQ and/or essay questions (60 minutes) |
1-9 |
60% |
|
|
|
|
Total: |
100% |
|