FIN 611 - Financial Modeling

Financial modeling is the quantitative representation of the relationships among the variables of financial problems. A well-designed financial model captures the interdependencies among the variables at hand and makes it easy to answer “what-if” questions. Developing good financial models requires combining knowledge of finance and modeling skills. Because the financial principles supporting the models we build are covered in other finance courses, we will only spend a little time on the financial theory behind each model. Financial and statistical functions as well as more complex Excel and VBA (Visual Basic for Applications) operations, such as using data tables, working with matrices, loops and arrays, and generating random numbers, will be introduced as necessary. No prior VBA knowledge is expected. The corporate finance and investment models we will focus on include: cost of capital, financial statement modeling, capital budgeting, portfolio construction methods including mean-variance portfolio optimization, value at risk, equity options valuation, and bond portfolio management. The overriding goal of this course is to get the students to the skill level where they can model and solve most finance problems they will face in the business world.

Concentrations - Finance