This module provides a general introduction to the use of Microsoft Excel in financial applications.
Subjects are:
Excel Essentials
Basic Financial Calculations with Excel (PV and FV, with applications to stock valuation; building loan tables)
Essential Probability and Statistics with Excel
Bond & Stock Analysis (bond pricing, duration and convexity, the yield curve, stock valuation using the DDM)
Portfolio Optimization (building efficient frontiers; constrained optimization)
Derivatives Modelling in Excel
Advanced Modelling: VBA for Financial Applications
Total contact hours: 36
Private study hours: 114
Total study hours: 150
Main assessment methods
Individual Coursework (2000 words) (30%)
Excel Based Project (70%)
Reassessment method:
100% coursework
Benninga, S. (2008) Financial Modelling, third edition, MIT Press.
Alexander, C. (2008) Market Risk Analysis, Vol 1: Quantitative Methods in Finance, Wiley.
Holden, C.W. (2012) Excel Modelling in Investments, fourth edition, Pearson.
Jackson, M. and M. Staunton (2001) Advanced Modelling in Finance using Excel and VBA, Wiley.
See the library reading list for this module (Canterbury)
The intended subject specific learning outcomes.
On successfully completing the module students will be able to:
- perform essential financial calculations using Microsoft Excel;
- use Excel statistical and probabilistic functions and features for financial applications;
- carry out bond-related calculations using Excel;
- use Excel for stock analysis;
- use Excel for portfolio optimization;
- implement well-known derivatives models into Excel.
The intended generic learning outcomes.
On successfully completing the module students will be able to:
- set-up a professional Microsoft Excel spreadsheet;
- translate theoretical problems or models into spreadsheet applications;
- present and analyse real market data;
- understand and correctly interpret financial results obtained using Excel;
- use Microsoft Excel functions as well as other important features for financial applications.
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