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: 2021/2

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.

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 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.

Additional outcomes:

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. 

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

(2) One project to be submitted at the end of February

Formative assessment methods:

Mock Test in either Week 10 or Week 11.

Penalties for late submission:

The Module Convener 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-submission of the main project.

Additional Costs (specified where applicable):

Required text books: Principles of Finance with Excel by Simon Benninga and Tal Mofkadi, 2018, 3rd Edition, Oxford University Press. ISBN:9780190296384 £135.99

Last updated: 29 September 2021