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:
Current from: 2020/1

Email: g.persand@icmacentre.ac.uk

Type of module:

Summary module description:

This module is delivered at ºÚ¹Ï³ÔÁÏÍø and ºÚ¹Ï³ÔÁÏÍø Malaysia.

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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.Ìý

Career Management Skills (distributed component):Ìý During this module, students willÌýÌý

• Develop self-awareness in the context of career decision makingÌý


• Learn about potential career paths they can pursue in financial servicesÌý


• Practice research, networking and informational interviewingÌý


• Build on previous group work experienceÌý


• Reflect upon their learning and determine next steps for their development

Assessable learning outcomes:

By the end of the module, students are expected to have developed:Ìý

• A good knowledge of the functions of Microsoft Excel.Ìý


• An ability to solve practical problems in a variety of areas in finance (as listed in the outline content below) using this software.Ìý

Careers-related assessable learning outcomes:ÌýÌý

• Self-awareness - ability to assess and articulate skills, interests, values and personality traits in the context of career decision makingÌý


• Understanding of potential career paths – ability to conduct research into companies and job roles, develop a professional network and conduct informational interviewsÌý


• Group work and presentation skills – ability to work well as a group to complete a project and deliver an effective presentationÌý

Additional outcomes:

Through the CMS component, students will develop their commercial awareness and come to understand broad trends in the financial services labour market and what contributes to an effective job application.Ìý

Outline content:

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


2. Financial arithmetic and the time value of moneyÌý


3. EquitiesÌý


4. BondsÌý


5. Portfolio ManagementÌý


6. Capital Asset Pricing ModelÌý


7. Options pricingÌý


8. Project – Portfolio Optimisation/Bond Immunisations

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The content of the CMS component: Four interactive workshops designed to develop students’ team working, organisation, negotiation and presentation skills. The content covered will also introduce the students to the financial services industry and potential graduate career pathways.Ìý

1. Introduction to CMSÌýÌý


2. Financial services industry structure and recruitment pathwaysÌý


3. Research, networking, information al interviewingÌý


4. Project management and assignment briefingÌý

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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. The CMS component is based on interactive workshops where students will participate in experiential learning, followed by some input from the facilitator and be signposted to further resources should they wish to continue to develop their knowledge in these ar eas.Ìý

Summative assessment- Examinations:

No final examination for this module.Ìý

Summative assessment- Coursework and in-class tests:

(1) One 2.5 hour in-class test in the Spring TermÌý

(2) One project to be submitted in the Spring TermÌý

(3)ÌýCareer Management Skills:ÌýÌý

Group video presentation and report where students review a potential career path (counts 2% of the final mark)Ìý

750-word essay on their personal view of the career path and their suitability (or otherwise) for the job (counts 8% of the final mark).Ìý

Formative assessment methods:

Career Management Skill: Self and peer evaluation of performance as part of the team.Ìý

Penalties for late submission:

The Module Convener will apply the following penalties for work submitted late: Ìý

• 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;Ìý


• 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.Ìý

The University policy statement on penalties for late submission can be found at: http://www.reading.ac.uk/web/FILES/qualitysupport/penaltiesforlatesubmission.pdfÌý

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 overall mark of 40%

Reassessment arrangements:

Re-submission of the main project.Ìý

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

Last updated: 2 September 2020