## IC212-Financial Modelling

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:
Current from: 2022/3

Module Convenor: Dr Gita Persand
Email: gita.persand@icmacentre.ac.uk

Type of module:

Summary module description:

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

This module aims to put various finance theories, which were studied at Part 1 Introductory Finance, into practice with the use of Microsoft Excel functions, hence providing students with an opportunity to apply their theoretical knowledge, when using Excel, to solve some real-life financial problems.

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.

Assessable learning outcomes:

By the end of the module, students are expected to:

• Use and apply the functions of Microsoft Excel

• Solve practical problems in a variety of areas in finance (as listed in the outline content below) using this software.

Outline content:

1. Some significant excel functions for finance: Statistical analysis and time series regression

2. Financial arithmetic and the time value of money

3. Equities

4. Bonds

5. Portfolio Management

6. Capital Asset Pricing Model

7. Options pricing

8. Project – Portfolio Optimisation/Bond Immunisations

Brief description of teaching and learning methods:

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 20 Seminars 7 Guided independent study: Wider reading (independent) 13 Wider reading (directed) 20 Advance preparation for classes 20 Preparation for seminars 20 Revision and preparation 30 Group study tasks 30 Carry-out research project 40 Total hours by term 200 0 0 Total hours for module 200

Summative Assessment Methods:
 Method Percentage Project output other than dissertation 60 Class test administered by School 40

Summative assessment- Examinations:

No final examination for this module.

Summative assessment- Coursework and in-class tests:

(1) One 2.5 hour in-class test in Week 1 of the Spring Term (40%)

(2) One group project (with a limit of 1,500 words) to be submitted in Week 5 of the Spring Term (60%)

Formative assessment methods:

Mock Test in Week 10. (Autumn Term)

Penalties for late submission:

The Programme Team will apply the following penalties for work submitted late:

• where the piece of work is submitted after the original deadline (or any formally agreed extension to the deadline): 10% of the total marks available for that piece of work will be deducted from the mark for each working day[1] (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.

Assessment requirements for a pass:

A minimum mark of 40%.

Reassessment arrangements:

Re-assessment is via an individual project