IC206-Financial Modelling/CMS

Module Provider: ICMA Centre
Number of credits: 20 [10 ECTS credits]
Level:5
Terms in which taught: Autumn term module
Pre-requisites: IC102 Introductory Finance/Trading Simulation I
Non-modular pre-requisites:
Co-requisites:
Modules excluded:
Module version for: 2017/8

Module Convenor: Dr Gitanjali Persand

Email: g.persand@icmacentre.ac.uk

Summary module description:
This course provides a detailed guide to using Microsoft Excel to solve a variety of practical problems related to finance.

This module is delivered at University of Reading and University of Reading Malaysia.

Aims:
Financial Modelling: Many careers in banking and finance now require candidates to possess a strong grounding in Excel. This course provides students with an opportunity to apply their theoretical knowledge to practice while using Excel to solve specific problems related to assets pricing, derivatives pricing and portfolio management.

Career Management Skills (distributed component): This module component aims to provide students with the opportunity to develop self-awareness in the context of career decision making, knowledge of the career opportunities that are available to them, and the skills to make effective applications.

Assessable learning outcomes:
By the end of the module, students are expected to have developed:

  • A good knowledge of the functions of Microsoft Excel.
  • An ability to solve practical problems in a variety of areas in finance (as listed in the outline content below) using this software.
  • An ability to assess and articulate their skills, interests, values and personality traits in the context of career decision making.
  • The skills required for careers information retrieval, research and decision making skills, using a variety of sources including the Internet and interviews.
  • The ability to be able to recognise and to write an effective application; the ability to identify the purpose and processes of recruitment interviews and a knowledge of how to perform effectively.

Additional outcomes:
Through the CMS component, students will develop business awareness through understanding broad trends in the graduate labour market and the personal attributes and achievements that employers require. They will develop oral communication and team working skills through practical group exercises. IT skills and information handling skills will be developed through use of the Internet. They will develop Personal Development Planning abilities through the reflective exercises and forward-looking nature of CMS, which will significantly contribute to PARs and other PDP activities.

Outline content:
1. Some significant excel functions for finance:
? Statistical analysis and time series regression
? Financial arithmetic and the time value of money
2. Asset pricing:
? Stocks
? Bonds
3. Portfolio theory:
? Efficient portfolios and portfolio diversification
? CAPM
4. Derivatives:
? Futures
? Options
5. Portfolio Optimization/Risk Management Applications:
? Project
6. CMS
The module component comprises of three elements that relate to the stages in effective
career planning – Self Awareness, The Key Roles in Finance, and Career Management
Techniques.

Brief description of teaching and learning methods:
Aside from the CMS component, this is a hands-on course which is exclusively computer-based. Students will be expected to read the relevant chapters in the textbook before attending the classes.

Contact hours:
  Autumn Spring Summer
Lectures 26
Seminars 7
Practicals classes and workshops 3
Guided independent study 164
       
Total hours by term 200.00
       
Total hours for module 200.00

Summative Assessment Methods:
Method Percentage
Report 10
Project output other than dissertation 50
Class test administered by School 40

Other information on summative assessment:
Financial Modelling: End of term test
Career Management Skill: Report
Financial Modelling: Group Project

Formative assessment methods:
Career Management Skill: Submission of a CV or linkedin profile, feedback on a 500 self-evaluation essay.

Penalties for late submission:
The Module Convenor will apply the following penalties for work submitted late, in accordance with the University policy.

  • where the piece of work is submitted up to one calendar week after the original deadline (or any formally agreed extension to the deadline): 10% of the total marks available for the piece of work will be deducted from the mark for each working day (or part thereof) following the deadline up to a total of five working days;
  • where the piece of work is submitted more than five working days after the original deadline (or any formally agreed extension to the deadline): a mark of zero will be recorded.

  • The University policy statement on penalties for late submission can be found at: http://www.reading.ac.uk/web/FILES/qualitysupport/penaltiesforlatesubmission.pdf
    You are strongly advised to ensure that coursework is submitted by the relevant deadline. You should note that it is advisable to submit work in an unfinished state rather than to fail to submit any work.

    Length of examination:

    N/A


    Requirements for a pass:

    A minimum overall mark of 40%


    Reassessment arrangements:

    Re-submission of a project


    Additional Costs (specified where applicable):
    1) Required text books: Financial Modelling Textbook: Principles of Finance with Microsoft Excel, 2nd Edition, 2011, Publisher: Oxford University Press, Author: Simon Benninga, ISBN: 978-0-19-975547-9
    2) Specialist equipment or materials:
    3) Specialist clothing, footwear or headgear:
    4) Printing and binding:
    5) Computers and devices with a particular specification:
    6) Travel, accommodation and subsistence:

    Last updated: 31 March 2017

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