UNIVERSITY OF KENT
FINANCE with EXCEL SECTION 1: MODULE SPECIFICATIONS
1. Title of the module: Finance with Excel 2. School which will be responsible for management of the module: Kent Business School 3. Start date of the module September 2013 4. The number of students expected to take the module 40 5. Modules to be withdrawn on the introduction of this proposed module and consultation with other relevant Schools and Faculties regarding the withdrawal N/A 6. Level of the module M 7. The number of credits which the module represents 15 8. Which term(s) the module is to be taught in (or other teaching pattern) Autumn 9. Prerequisite and co-requisite modules N/A 10. The programme(s) of study to which the module contributes MSc Financial Markets MSc Financial Services in Banking MSc International Accounting and Finance 11. The intended subject specific learning outcomes and, as appropriate, their relationship to programme learning outcomes Through successful completion of the module, students will be able to: 11.1: perform essential financial calculations using Microsoft Excel 11.2: use Excel statistical and probabilistic functions and features for financial applications 11.3: carry out bond-related calculations using Excel 11.4: use Excel for stock analysis
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11.5: use Excel for portfolio optimization 11.6: implement well-known derivatives models into Excel
12. The intended generic learning outcomes and, as appropriate, their relationship to programme learning outcomes By the end of this module, students should be able to demonstrate the ability to:
12.1: set-up a professional Microsoft Excel spreadsheet 12.2: translate theoretical problems or models into spreadsheet applications 12.3: present and analyse real market data 12.4: understand and correctly interpret financial results obtained using Excel 12.5: use Microsoft Excel functions as well as other important features for financial applications 13. A synopsis of the curriculum Excel Essentials
- Excel Functions: important mathematical and statistical functions
- Useful Excel Tricks
- Data Analysis, Solver, Goal Seek
- Array functions; workings with rows and columns
- Financial applications:
o Portfolio analysis basics in Excel
o PCA Analysis of correlated financial systems
o Finding a bond yield with Solver
Basic Financial Calculations with Excel (PV and FV, with applications to stock valuation; building loan tables)
Essential Probability and Statistics with Excel
Bond & Stock Analysis (bond pricing, duration and convexity, the yield curve, stock valuation using the DDM, DuPont Stock Analysis)
Portfolio Optimization (building efficient frontiers; constrained optimization; performance measurement for active and passive strategies; the Black-Litterman approach)
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UNIVERSITY OF KENT
Derivatives Modelling in Excel (building swaps cash flow tables; spot- futures parity; options on various underlying assets: pricing, Greeks, implied volatility)
Advanced Modelling: VBA for Financial Applications
Finally, it is worthwhile emphasizing the importance of Excel for the finance profession: any student wishing to succeed in the finance sector must acquire a high level of competency with Excel in order to be competitive in today’s highly selective job market.
14. Indicative Reading List Benninga, S. (2008) Financial Modelling, third edition, MIT Press. Alexander, C. (2008) Market Risk Analysis, Vol 1: Quantitative Methods in Finance, Wiley. Holden, C.W. (2012) Excel Modelling in Investments, fourth edition, Pearson. Jackson, M. and M. Staunton (2001) Advanced Modelling in Finance using Excel and VBA, Wiley. 15. Learning and Teaching Methods, including the nature and number of contact hours and the total study hours which will be expected of students, and how these relate to achievement of the intended learning outcomes There will be 36 hours of class contact time, comprising a mixture of lectures and seminars (computer lab sessions). The lectures will be used for whole class presentation of material by the lecturer, while during the seminar time students will implement the techniques they have been taught in practice, using financial data and Microsoft Excel. Students will be expected to study for 150 hours in total with non-contact time devoted to guided individual learning, including preparing the module coursework.
Intended Lecturer-led Seminars Guided individual learning sessions learning outcomes Subject 11.2-11.6 11.1-11.6 11.3-11.6 specific Generic 12.1and 12.4 12.1, 12.3-12.5 12.1, 12.3, 12.4
16. Assessment methods and how these relate to testing achievement of the intended learning outcomes The assessment pattern will consist of two individual pieces of work: one individual piece of coursework which will count for 30% of the mark and an Excel-based project, which will count for 70% of the mark. Both the coursework and the project will be set by the lecturer and will cover all
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subject specific and generic learning outcomes 11.1 to 11.6 and 12.1 to 12.5. 17. Implications for learning resources, including staff, library, IT and space No software requirements (Microsoft Excel is already available on all university computers). Books on the reading list need to be ordered for the University library. All sessions must be run in a computer lab, equipped with a projector, whiteboard and visualizer, sitting 20-40 students. As the Kent Business School (KBS) computer lab only has 12 terminals, no fixed projector, visualizer or whiteboard, an alternative, fully functional computer room must be identified for delivering this module.
18. The School recognises and has embedded the expectations of current disability equality legislation, and supports students with a declared disability or special educational need in its teaching. Within this module we will make reasonable adjustments wherever necessary, including additional or substitute materials, teaching modes or assessment methods for students who have declared and discussed their learning support needs. Arrangements for students with declared disabilities will be made on an individual basis, in consultation with the University’s disability/dyslexia support service, and specialist support will be provided where needed. 19. Campus(es) where module will be delivered1 Canterbury
SECTION 2: MODULE IS PART OF A PROGRAMME OF STUDY IN A UNIVERSITY SCHOOL
Statement by the School Director of Graduate Studies: "I confirm I have been consulted on the above module proposal and have given advice on the correct procedures and required content of module proposals"
...... Director of Graduate Studies Date
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Statement by the Head of School: "I confirm that the School has approved the introduction of the module and, where the module is proposed by School staff, will be responsible for its resourcing"
1 Required for information purposes only. Changes of campus will not require re-approval of the module specification.
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UNIVERSITY OF KENT
...... Head of School Date
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Module Specification Template Last updated January 2013
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