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1. COURSE OBJECTIVES
This course introduces basic concepts with respect to financial modeling. It focuses on calculus tools that are widely used to solve financial problems. Upon completing this course, students will be able to build business valuation models, asset pricing models and risk management models using tools available on personal computers.
2. COURSE CONTENT
No.
Content
Time Allocation
Contribution to CLO
Hour(s) on the class
Essays, exercise,
Assignments
Self-study with teacher’s tutorials
Lecture
Practice, Seminar
1
Chapter 1: Basic Financial Calculations
2
1
1
5.5
1,7,8
2
Chapter 1: Basic Financial Calculations (cont.)
2
1
1
5.5
1,7,8
3
Chapter 2: Corporate Valuation Overview
2
1
2
5.5
2,7,8
4
Chapter 2: Corporate Valuation Overview (cont.)
2
1
1.5
5.5
2,7,8
5
Chapter 3: Calculating the Weighted Average Cost of Capital (WACC)
2
1
1.5
5.5
3,7,8
6
Chapter 3: Weighted Average Cost of Capital (WACC) (cont.)
2
1
1
5.5
3,7,8
7
Chapter 3: Weighted Average Cost of Capital (WACC) (cont.)
2
1
2
5.5
3,7,8
8
Chapter 4: Calculating Efficient Portfolios
2
1
1.5
5.5
4,7,8
9
Chapter 5: Estimating Betas and the Security Market Line
2
1
1.5
5.5
4,7,8
10
Chapter 6: Efficient Portfolios without Short sales
2
1
1.5
5.5
4,7,8
11
Chapter 7: The Binomial Option Pricing Model
2
1
1.5
5.5
5,7,8
12
Chapter 8: The Black-Scholes Model
2
1
2
5.5
5,7,8
13
Chapter 9: An Introduction to Monte Carlo Methods
2
1
1.5
5.5
6,7,8
14
Chapter 10: Simulating stock prices
2
1
1.5
5.5
6,7,8
15
Chapter 11: Monte Carlo simulation for Investments
2
1
1.5
5.5
6,7,8
Total
30
15
22.5
82.5
3. COURSE ASSESSMENT
- Score ladder: 10
- Type of assessment
Form
Content
Criteria
CLO
Proportion
Formative
Attendance
The number of attendances and participation in lesson
1-6,9
10%
Midterm exam
Issues have been studied
MCQ and/or essay questions
(60 minutes)
1,2,3,7-9
30%
Summative
Final test
MCQ and/or essay questions
(60 minutes)
1-9
60%
Total:
100%