Module Descriptors
FINANCIAL MODELLING WITH DECISION MAKING
MATH50347
Key Facts
School of Creative Arts and Engineering
Level 5
15 credits
Contact
Leader: Helen Shaw-Croft
Hours of Study
Scheduled Learning and Teaching Activities: 24
Independent Study Hours: 126
Total Learning Hours: 150
Assessment
- ASSIGNMENT weighted at 50%
- EXAMINATION - UNSEEN IN EXAMINATION CONDITIONS weighted at 50%
Module Details
Module Resources
Microsoft EXCEL package
A scientific calculator
A scientific calculator
Module Special Admissions Requirements
This module is only available to students on the Mathematics and Applied Statistics award.
Module Texts
Recommended Reading
How to Read the Financial Pages, M. Brett, Century, 2003, ISBN: 0712662596
Modern Investment Theory, R. Haugen, Prentice-Hall, 5th Edition, 2000, ISBN: 0130191701
Investment Science, Luenberger, Oxford University Press, 1998, ISBN: 0195108094
How to Read the Financial Pages, M. Brett, Century, 2003, ISBN: 0712662596
Modern Investment Theory, R. Haugen, Prentice-Hall, 5th Edition, 2000, ISBN: 0130191701
Investment Science, Luenberger, Oxford University Press, 1998, ISBN: 0195108094
Module Additional Assessment Details
1. An assignment, involving the creation and management of a virtual portfolio of shares listed in the Financial Times, will be carried out. All transactions will be recorded and processed using EXCEL. The assignment will be assessed through a written report (3000 words) and weighted 50%. (Learning Outcomes 1, 2, 3, 4)
2. A written examination, in which the students will have access to EXCEL, will be taken at the end of the module. (2 hours) This is also weighted 50%. (Learning Outcomes 1, 2, 3, 4)
2. A written examination, in which the students will have access to EXCEL, will be taken at the end of the module. (2 hours) This is also weighted 50%. (Learning Outcomes 1, 2, 3, 4)
Module Indicative Content
Financial Markets - FTSE, shares, options, financial press.
Investment Appraisal - use of EXCEL to evaluate investment decisions (NPV, IRR, Payback, annuities).
Portfolio analysis - statistical analysis (expectation, covariance) involved with portfolio analysis.
Mean-variance portfolio theory, portfolio optimisation.
Modelling and solving investment decisions using LP techniques in EXCEL.
Options and option pricing using the binomial model.
One Fund Theorem and Capital Asset Pricing Model
Investment Appraisal - use of EXCEL to evaluate investment decisions (NPV, IRR, Payback, annuities).
Portfolio analysis - statistical analysis (expectation, covariance) involved with portfolio analysis.
Mean-variance portfolio theory, portfolio optimisation.
Modelling and solving investment decisions using LP techniques in EXCEL.
Options and option pricing using the binomial model.
One Fund Theorem and Capital Asset Pricing Model
Module Learning Strategies
12 hours lectures and 12 hours tutorials
Throughout the module you will also be working on your share-dealing assignment.
Throughout the module you will also be working on your share-dealing assignment.