Module Descriptors
FINANCIAL MODELLING WITH DECISION MAKING
MATH60377
Key Facts
School of Creative Arts and Engineering
Level 6
15 credits
Contact
Leader: Helen Shaw-Croft
Hours of Study
Scheduled Learning and Teaching Activities: 36
Independent Study Hours: 114
Total Learning Hours: 150
Assessment
- ASSIGNMENT weighted at 50%
- CLASS-TEST weighted at 50%
Module Details
Module Texts
Recommended Reading
How to Read the Financial Pages, M. Brett, Century, 2003, ISBN: 0712662596
Reading and Undertaking the Financial Time, K Boakes, Prentice Hall, 2009, ISBN: 978-0273731818
Modern Investment Theory, R. Haugen, Prentice-Hall, 5th Edition, 2000, ISBN: 0130191701
How to Read the Financial Pages, M. Brett, Century, 2003, ISBN: 0712662596
Reading and Undertaking the Financial Time, K Boakes, Prentice Hall, 2009, ISBN: 978-0273731818
Modern Investment Theory, R. Haugen, Prentice-Hall, 5th Edition, 2000, ISBN: 0130191701
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 (around 3000 words) and weighted 50%. (Learning Outcomes 1, 2, 3, 4)
2. A written class test will be taken at the end of the module. (1.5 hours) This is also weighted 50%. (Learning Outcomes 1, 2, 3, 4)
2. A written class test will be taken at the end of the module. (1.5 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
The core material will be delivered through 12 hours of lectures and 24 hours of practical/tutorial (max size of 20). In tutorial/practical classes you will use software packages to solve financial and share portfolio problems.
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.
Module Resources
Microsoft EXCEL package
A scientific calculator
A scientific calculator
Module Special Admissions Requirements
Prior study of CE61014-4 Mathematics and Statistics for Computing Students, or CE00819-4 Mathematics for Interactive Computing, or equivalent. This module is not available to students on the Mathematics and Applied Statistics award who instead can take the equivalent module at Level 5, CE62031-5.